The CNTIC VPower Energy floating storage unit (FSU) docked in the Yangon River on 26 November and has begun supplying LNG to CNTIC VPower’s 410MW Thanlyin and 477MW Thaketa power plants.
VPower shared the news in a press release.
The FSU is 272 metres long and 106,283 gross tonnes. It is docked at the MCV LNG Terminal and regasification unit constructed on 17 acres at plot 14 of Thilawa Port. The terminal is a JV between CNTIC VPower (57%) and local Myanmar Business Consultant (43%).
According to previous reports, the CNTIC VPower Energy is to replace the 28,000 cubic metre CNTIC VPower Global put in place earlier this year as a temporary storage facility while a permanent jetty was under construction at the terminal.
Global New Light of Myanmar quoted Myanmar Port Authority Harbour Master U Win Myint Aung as saying that the FSU would be anchored at the port for five years, the duration of the contracts for the two LNG plants.
CEO of CNTIC VPower Earnest Cheung was quoted in the press release as saying, “LNG-to-power is a dream for many but a reality to the people of Myanmar, on this day we celebrate the arrival of our CNTIC VPower Energy and in front of viewers on national television. This floating storage vessel serves as a strategic asset that provides energy security for millions of households across the country. It has been an incredible journey for all of us, and a collective win for the nation which also brings special meaning during the celebration of the Tazaungdaing festival, ‘Festival of Lights’ this weekend. Our Yangon power plants combined provide a significant contribution to the Myanmar national grid all year round, and is one honour that we are particularly proud of.”
Separately, the Myanmar Times quoted Deputy Permanent Secretary for Electricity and Energy U Soe Myint last week announcing that the country had received its second delivery of 126,000 cubic metres of LNG to supply the two Yangon-based LNG-to-power plants.
According to the article, the Ministry of Electricity and Energy signed agreements with Petronas LNG Limited and CNTIC VPower to purchase LNG for five years.
Petronas made an initial two-part delivery of 190,000 cubic metres of LNG for the plants in May and June. The fuel was sold on a free-on-board basis, and no details were published at the time regarding the long-term LNG supply plans for the facilities.
The Myanmar Times also reported, somewhat confusingly, that the LNG would be used to power seven power plants in Magway, Shwetaung, Kyunchaung, Ahlone, Kyaukphyu, Thanlyin and Thaketa with a combined generation capacity of 1,166MW.
It appears that the article is referring to the seven emergency power projects which were labelled as priority for completion ahead of summer 2020. The Magway, Kyunchaung, Shwetaung and Ahlone projects are all gas-fired, though, and it is believed that all of them are already operational.
No information has been shared publicly about either the current status of CNTIC VPower’s Kyaukphyu power plant or how it will be supplied with LNG.
No announcement has been made either to clarify whether the Thaketa and Thanlyin plants are now fully operational. The Thaketa plant began supplying a limited amount of power around June.
Source: MNA
CNTIC VPower is a JV company between Chinese state-owned engineering, procurement and construction firm China National Technical Import & Export Corporation (CNTIC) and Hong Kong-based power generation distributor VPower Group International Holdings.
The JV was formed to operate the three emergency LNG-to-power projects tendered out in summer 2019, which are located in Yangon and Rakhine.
