Myanmar to cut gas exports to Thailand to address power shortage

Myanmar is hoping to retain 200 million cubic feet per day of natural gas from the 1 billion cubic feet per day it exports to Thailand.

It is one of the measures that the country seeks to implement in order to address crippling power shortages. 

Thus the government of Myanmar wants to renegotiate natural gas export deals with Thailand, a senior Energy Ministry official said.

The gas comes mainly from offshore blocks.

"Under the original contract, we are entitled to buy 20-25 percent of the gas at the local price for domestic use," the ministry official said, requesting anonymity because he was not authorised to speak to the media.

Under a military junta that ceded power in March 2011, Myanmar agreed to dozens of contracts with energy firms to export most of its oil, gas and hydropower output to neighbouring China and Thailand.

The current administration has recognised the urgent need to deal with power shortages wants to construct new gas-fuelled plants,which it sees as the fastest way to meet growing demand.

Thailand imports Burmese gas through its top energy firm, state-controlled PTT Pcl.

Tevin Vongvanich, chief executive of its PTT Exploration and Production Pcl unit, said the two countries were working to ensure there were mutual benefits from existing and future deals.

"Thailand and Myanmar are cooperating to meet domestic natural gas demand for both countries," he said.

"What we produce that is beyond Thailand's needs, we will give to Myanmar. There has been no change or renegotiation of any existing contracts."

Tevin could not confirm there was a "buy-back" clause in contracts, as the Myanmar official stated.

According to its Central Statistical Organisation, Myanmar exported $3.5 billion worth of gas, mainly to Thailand, in the fiscal 2011/12 (April-March).

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