Tue 12 Mar 2013
Filed under: Business / Trade,News
Since the lifting of sanctions by western countries led by the U.S., foreign investors have been closely observing how Myanmar will open up to the outside world with all its rich natural resources. It is said that Myanmar has gradually announced the opening of 18 offshore oil and gas blocks to foreign bidders since this January. At the same time, the country is introducing foreign capital and technologies to consolidate the management of the nation’s oil and gas resources. Furthermore, Myanmar government plans to open another 50 offshore oil and gas blocks in the near future.
Myanmar is rich in natural gas reserves. Currently, it is producing as much as 1.2 to 1.4 billion cubic feet of natural gas every day. However, the government exports most of natural gas produced in exchange for foreign currency, with 80% going to Thailand. This means Myanmar cannot satisfy all its domestic demands, but only 50% of it. Data shows that as the country opens up, the domestic demand for natural gas will increase substantially. It is estimated that by the next fiscal year, the daily demand for natural gas inside Myanmar will increase from 47,000 cubic feet this current fiscal year to 92,000 cubic feet