Fuel Storage Terminal with US$92m FDI to Start Operation at Thilawa Port

The first and largest fuel storage terminal in Myanmar, which has involved US$92 million of investment, opened during the first week of May, said officials from Puma Energy Asia Sun (PEAS).

The storage terminal will begin operation at Thilawa port in Yangon, and is a joint-venture between Puma Energy and Asia Sun Energy. Puma Energy, which deals with international fuel storage, transport and distribution, has a 80-percent stake in the project, while Asia Sun Energy, a local firm with experience in logistics and trading in Myanmar, owns 20pc.

The terminal will provide storage for premium petroleum products such as commercial fuel, HFO (fuel used by heavy machineries for generating power), bitumen and jet fuel. Moreover, fuel required by the aviation sector, electricity and power sector and mining sector will be managed in the terminal as well.

If the opportunity presents itself, there are also plans to expand the services and import new products.

“In order to provide assistance in the development of the nation’s economy, PEAS has invested almost US$100 million in the basic structure of this integral fuel terminal.

“Thilawa’s fuel storage terminal will help Myanmar’s growing needs for transporting fuel, and will also lend its hands in the country’s development,” said David Holden, general manager of PEAS.

This PEAS facility, which is capable of storing 91,000 cubic metres of fuel, is the first terminal in Myanmar to be built according to the standards set by international organisations.

The facility is to be constructed in accordance to international construction and natural disaster standards, which include fire-extinguishing systems, powerful emergency management and control systems.

“We are proud to set a record in this field with our basic infrastructures, modern quality control services and independent in-office labs. We believe that we would become a company that provides reliable and high quality fuels.

“As there will always be quality control tests carried out at this storage terminal, you can rest assure when you are refilling the fuel needs of the nation, because it is certain that you will always receive the same quality and quantity of fuel from oil tankers and fuel trucks,” said U Win Kyaw, Puma Energy Asia Sun chair.

Currently, Singapore and India are the main importers of high-quality oil, and licensed works such as oil storage and distribution that are being carried out. When the restrictions on investments are loosened and new licenses can be obtained, there are plans to perform oil purification in the future, Mr Holden added. For local consumers, only premium products are imported and will be available to be sold in competitive markets.

Within two months since the launch of the products, the company has attracted 20pc of consumers. The company will continue to produce high-quality machine oil and provide good delivery services, as the company believes that the consumers in Myanmar prefer to use the finest products, he added.

Myanma Petroleum Products Enterprise (MPPE), under the Ministry of Electricity and Energy, has allowed Puma Energy to import and distribute jet fuel for the first time.

The imported fuel distribution is a financial venture jointly invested by MPPE (51pc) and Puma (49pc).

Presently, the business is operating with a US$75 million investment, and all the professional procedures including jet fuel storage and transport have been updated and revised. Furthermore, an extra US$40 million investment has been made, Mr Holden told The Myanmar Times.

“We have a guarantee that the quality of jet fuel is up to standards. Hence, the international airlines will feel confident to refill fuel in Myanmar.

“Furthermore, we have upgraded not only our products, but also trained our staff members,” he added.

The MPPE has called for a tender for work sites, transport services and shop openings by an open tender system. Puma Energy is one of the three companies that made it into the final selection process.

 

Source: The Myanmar Times

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