MIC approves MCV terminal for emergency projects

The Myanmar Investment Commission (MIC) approved on 6 March the construction of an LNG terminal on 17 acres at plot 14 of Thilawa port area in Yangon, according to an update on the Directorate of Investment and Company Administration’s website. 

MCV Terminal is to implement the terminal, which is a key component of the 350MW and 400MW emergency LNG-to-power projects being constructed on a 83-acre plot owned by military-run conglomerate Myanmar Economic Holding Limited (MEHL).
 
A representative of MCV Terminal told Myanmar Transport Infrastructure Monitor that the company is a JV between local Myanmar Business Consultant (43%) and CNTIC VPower International Terminal Yangon Limited (57%).
 
The representative also clarified that the value of the LNG terminal investment is $40.4m. 
 
The MIC approval states the LNG terminal will encompass “services of [floating storage unit (FSU)] berthing [and] regasification for the LNG power plant”. 
 
Recent reporting by Frontier Magazine has revealed that the 400MW and 350MW Thanlyin emergency power projects have now been semi-combined with the goal of reducing costs and time needed for implementation. 
 
While the generation equipment will be located at separate sites, the plants will now use much of the same infrastructure, including the jetty, floating storage unit and land-based regasification unit which are likely encompassed in the LNG terminal project. 
 
According to an update published by the Ministry of Electricity and Energy last week, the jetty is already 40% complete while the regasification unit is around 15% complete.
 
In terms of LNG delivery, larger fuel tankers are to dock at Kalargote in Mon State. The fuel will then be transferred to smaller tankers with a maximum capacity of 40,000 cubic metres. 
 
These smaller tankers can navigate the shallow Yangon River to reach a 150,000 cubic metre FSU moored at Thilawa terminal. 
 
LNG from the storage unit will then be piped to the onshore regasification unit that will supply gas generators at Thanlyin and Thaketa. Power will then be distributed to the grid via transmission lines. 
 
Frontier Magazine has also identified a 28,000 cubic metre LNG tanker in Dailan, China, which has been renamed the “CNITC VPower Global” and registered as a Hong Kong vessel. It is likely the tanker will be used to transport fuel up the Yangon River. 
 
About the companies involved
 
Hong Kong-based VPower began as a seller of backup generators to mainland China factories two decades ago. It has since focused on the fast-track power market. Currently, the company has 430MW of generation capacity in Myanmar and an additional 921MW under construction.  
 
VPower’s main local partner in Myanmar is Zeya & Associates, who is also involved in the emergency projects. 
 
Established in 1952, Chinese state-owned CNTIC imports and exports equipment as well as completing engineering projects across a variety of sectors. It is a stakeholder in VPower. 
 
Last month, VPower and CNTIC announced they were forming a JV to operate their three emergency LNG plants in Thaketa, Thanlyin and Kyaukphyu. 
 
It is unclear whether the companies will operate these projects now through CNTIC VPower International Terminal Yangon Limited or whether they will form another JV.
 
Myanmar Business Consultant Group is under the Star Sapphire Group of Companies, the subsidiaries of which operate in sectors such as exploration, mining, tourism, timber and manufacturing. 
 
Previously, Myanmar Business Consultant was involved in negotiations to install infrastructure in Tachileik, Shan State, and import electricity for the border town from the Electricity Generating Authority of Thailand.

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