Zawtika off­shore gas project pipe­line to be re­placed

The re­place­ment of the pipe­line in Zawtika off­shore gas project is aimed at im­prov­ing the re­li­a­bil­ity of sup­ply­ing gas in the coun­try, a com­pany of­fi­cial said.

The Myanmar Times - - Front Page - CHAN MYA HTWE chan­myahtwe@mm­

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.

Photo: Sup­plied

An off­shore plat­form at Zawtika, Moat­tama Gulf.

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