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Gas pipeline at Zawtika to be replaced

The replacement of a gas pipeline at the Zawtika project, offshore of Myanmar, will be conducted to reliably supply gas to Myanmar, said Mr. Piya Sukhumpanumet, general manager of PTTEP Myanmar Asset.

Mr Piya was speaking to journalists during a media tour to Zawtika, located in block M-9 of the Moattama Gulf, Tanintharyi Region on November 6.

Myanma Oil and Gas Enterprise (MOGE) holds a 20pc stake in block M-9, while the remaining 80pc is held by Thai oil company Petroleum Authority of Thailand Exploration and Production International (PTTEP). .The latter is the operator of the project.

The daily gas production at M-9 Zawtika is 345 million cubic feet, of which about one third, or 100 million cubic ft is allocated for domestic consumption. The remaining gas produced – around 240 million cubic ft – is exported to Thailand on a daily basis, said Mr. Sayan Charoensook, Zawtika field manager.

From Zawtika, gas is channeled via a 300-kilometer pipeline – 230km offshore and 70km onshore- to Kanbauk, Tanintharyi. From there, gas is exported to Thailand and transported via a separate 200km, 20 inch-wide pipeline to Myainggalay in Kayin State.

However, the existing pipeline being used to transport gas domestically has deteriorated. As a result, the pipeline is no longer able to meet the daily domestic gas quota of 100 million cubic ft. Now, only 60 million cubic ft to 80 million cubic ft of gas is being transported to Myainggalay. As such, the pipeline will need to be replaced.

PTTEP has submitted its proposal to replace the domestic pipeline to the MOGE and are now waiting for the necessary approvals to proceed, Mr Piya said.

As it is a domestic pipeline, MOGE is liable for the cost of its replacement, while PTTEP will conduct the replacement work. The entire process of replacing the pipeline would take around two years, Mr Piya said.

Gas was first discovered at Zawtika in 2007 and production and sales commenced in 2014. The Zawtika natural gas project is a 30-year project, with 26 years remaining on the contract.

In drilling at the M9 offshore block, PTTEP is currently utilising 11 wellhead platforms. While there is sufficient gas being produced to meet the 100 million cubic ft daily gas quota for Myanmar, additional drilling plans will be carried out if that quota is increased.

“If an additional request is made for the gas requirement of the domestic sector, extra gas will be provided,” Mr Piya said.

PTTEP is currently the third highest tax payer in the Myanmar oil and gas sector. The country receives income taxes and royalty payments from exports to Thailand.

SOURCE: MYANMAR TIMES

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