The Ministry of Energy is constructing a new oil refinery in central Myanmar.
The facility in Myotha, Mandalay region, will refine some of the country’s share of crude oil from the Kyaukpyu-Kunming pipeline that links Rakhine state and China, according to the Myanmar Oil and Gas Enterprise (MOGE) of the Ministry of Energy.
The new refinery is located in Myotha village in Mandalay region and will generate more than 56,000 barrels per stream day (bpsd). It will refine crude oil carried through the Myanmar-China pipeline and it is expected to be completed in 2013, an MOGE official said.
The MOGE already has three refineries in Thanlyin, Chauk and Thanparakan, with a combined capacity of 51,000 bpsd.
These refineries, however, can generate only a third of the initial capacity as a result of their frequent defects. They, therefore, are in need of major repairs.
The state-owned fuel enterprise is planning to privatise its existing refineries and it is expected that Thanlyin refinery will be the first to be up for privatisation, a source from the MOGE said.
The demand for energy is increasing steadily and the country has to import 1.5 barrels of diesel every year.
It is also expected that 1.8 million diesel barrels will be imported during this fiscal year, the MOGE report said.
Upon completion of the planned facility in Myotha Township, it will generate more capacity than the existing refineries in the country. The oil refinery, the liquefied petroleum gas plant, fertilizer plant, methanol plant, carbon dioxide plant and other plants are running under the control of the MOGE.