Kyaunkpyu-Kumming Oil and Gas Pipeline Project in Rakhine State suspended
Kyaunkpyu-Kumming Oil and Gas Pipeline Project in Rakhine State
Unrest in Rakhine State has led to the suspension of Kyaukphyu-Kumming Oil and Gas Pipeline Project as of 13 June, according to some company employees working on the project.
“The project has been halted temporarily as we have difficulty continuing the work due to the prevailing situations. Both the transportation and connection of pipelines have been suspended. As soon as peace has been restored, we will resume our work. But the work is going on as usual in other places,” said an entrepreneur in the Shwe Oil and Gas Project.
The project has been suspended because of the curfew and a state of emergency imposed by the government. It was reported that when the work resumes, the partnership companies will be informed. The project involves 51% of Daewoo International Corporation, 17 % of India Oil and Natural Gas Corp, 15 % of Myanma Oil and Gas Enterprise, 8.5 % of India GAIL and 8.5 % of Korea Gas Corporation. It is expected to sell gas to China through Kyaukphyu-Kumming pipelines in May 2013.
The offshore Shwe Oil and Gas Project in Rakhine is estimated to have 4.5 to 7.7 trillion cubic feet of natural gas. And the project is estimated to produce 500 million cubic feet of natural gas per day within 25 or 30 years.
Shwe Oil and Gas Pipeline Project and Myanmar-China Oil and Gas Pipeline Project are being undertaken by Hyundai Co, China National Petroleum Corporation, China Petroleum Pipeline Bureau and Myanmar state-owned IGE. Myanma Oil and Gas Enterprise owns 7 percent of the connection of pipelines.
