Shell has signed a Joint Development Agreement with Thai companies Italian-Thai Development and LNG Plus International to develop a regasification LNG terminal at Dawei special economic zone in Tanintharyi region, Myanmar. Shell will provide technical expertise on developing the 6 Mt/year (8.1 bcm/year) LNG terminal while it will access the terminal capacity and supply LNG to customers. The project will also include a US$500m, 450 MW gas-fired power plant. However, the project financing is not yet finalised.
The plan is to supply various businesses in Dawei, Thailand and eventually the rest of Myanmar, cutting out a requirement to ship south around Singapore. Part of the project’s rational is to provide direct transport links from Bangkok to the Andaman Sea, instead of requiring goods to be shipped through the Strait of Malacca. Myanmar is a major producer of natural gas (12.1 bcm in 2013). However, it may have to import gas in the medium term, as much of its production is contracted out to Thai and Chinese buyers, while Myanmar is planning a number of new projects such as electricity generation that requires natural gas.
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