Thailand-based construction firm Italian-Thai Development is planning to construct a liquefied natural gas (LNG) import terminal at Dawei industrial zone Myanmar, with an investment of $500m.
The LNG terminal is part of the first phase of the $1.7bn Dawei project. It will be designed with an annual capacity of six million tons.
The LNG terminal, which is subject to an environment impact assessment approval, will be backed by the World Bank and its private sector investment unit, the International Finance (IFC).
Italian-Thai Development president Premchai Karnasuta was quoted by Reuters as saying that Thai energy firm PTT and Royal Dutch Shell will each import three million tons of LNG a year.
The Dawei Special Economic Zone, Italian-Thai and its partners have signed concession agreements for first phase of the Dawei project, which includes a 450MW gas-fired power plant, small port, and a two-lane road to Thailand.
As part of a memorandum of understanding (MoU) between Myanmar and Thailand in 2008, Italian-Thai Development secured a 75-year concession to develop the Dawei Special Economic Zone.
In 2013, the project was suspended after it suffered from insufficient funds. Concessions rights to Italian-Thai Development were also discarded.
Thailand and Myanmar Governments then agreed to jointly develop the project.
Earlier this year, Japan agreed to participate in the Dawei development, and will provide technical and financial support.