Myanma Petrochemical Enterprise (MPE)

Downstream Petroleum Subsector

Myanma Petrochemical Enterprise (MPE) is a 100% State Owned Economic Enterprise and is responsible for Downstream Petroleum Sub-sector. It operates Refineries, Fertilizer Plants, Methanol Plant, Liquefied Petroleum Gas Plant, Bitumen and Carbon Dioxide Plants and other Processing Plants and produce Petroleum and Petrochemical Products such as Urea Fertilizer, Liquefied Petroleum Gas ("LPG"), Bitumen, Carbon Dioxide in both gaseous and liquid forms, Methanol and Lubricants and transportation of these products.

(a) Revamping and Renovation of Existing Refineries

Myanma Petrochemical Enterprise ("MPE") is currently operating 3 Refineries with a total refining capacity of 51,000 BOPD. The refining capacity and process plants of each of these Refineries are as follows:-

However, as these Refineries have been in operation for many years, the present refining capacity is about one third of manufacturers' name plate capacity.

In order to meet the growing demand of Petroleum Products in Myanmar, these refineries are required to be Revamped and Renovated, so that the refining capacity increased to refine more Petroleum Products.

(b) Programme for effective transportation of Crude Oil and Petroleum Products to Thanlyin Refinery

Imported Crude Oil and Diesel Fuel arrived onboard Large Crude Carriers and the volume of cargo is around 600,000 barrels. Due to 7 meters draft restriction and sandbars that exists along the Yangon river, heavy tankers are unable to navigate and have to moor at the mouth of Yangon river. These imported Crude Oil and Diesel Fuel have to be transferred and transported to Thanlyin Refinery using shuttle tankers of 6,000 barrels capacity and it took 14 days to discharge the cargo.

Presently, there is a constraint on importation of Crude Oil and Diesel Fuel and can import an average of 7.0 MMBBL of Crude Oil and 3.0 MMBBL of Diesel Fuel. However, as the demand for Petroleum Products had been rapidly increasing, it is estimated that the demand for Diesel Fuel will increase by 25 percent per annum and Motor Gasoline by 20 percent per annum.

In order to overcome these difficulties and problems, and as a mean to resolve the rising demand for Petroleum Products, Ministry of Energy is presently seeking a possibility to utilize a Single Mooring Buoy ("SMB") at the mouth of Yangon river and then to lay a pipeline from SMB to Thanlyin Refinery.

This SMB and Pipeline System Project will have following components :

It is estimated that with this System in place, it can transport 26.8 MMBBL per annum. The initial investment for this Project is estimated around US$ 98.4 million.

(c) New Refinery Project

Ministry of Energy is also planning to establish a New Refinery to overcome the shortage on supply of refined goods and to meet the growing demand of Domestic Petroleum Products Market. This New Refinery will have a capacity of 56,000 BPSD.

This refinery will be configured to refine Crude Oil from Middle East countries, in order to have flexibility in quality of Crude Oil. The estimated cost for this Project is in the order of US$ 250 million.

(d) Revamping and Spares and Accessories for Existing Urea Fertilizer Plants

MPE is operating 4 Urea Fertilizer Plants with a total name plate capacity of 1,012 metric tons of Urea Fertilizer per day.

The Urea Fertilizer Plants in operation are as follows:

As these Urea Fertilizer Plants have been in operation for many years, the name plate capacity of these plants are now reduced. Currently, these Urea Fertilizer Plants can produce about half of its capacity.

In order to meet the increased Urea Fertilizer demand of the Country, the existing Urea Fertilizer Plants needs to be Revamped, in order to increase their production level and at the same time spare parts and accessories are required for these plants to be operational all year round.

(e) New Two Urea Fertilizer Plants of 500 MTPD Capacity using Onshore Natural Gas

Myanmar is an agricultural based country. Currently, the Government is putting great efforts to expend Agriculture Sector, both intensively and extensively. MPE is presently about 300,000 Metric tons of Urea Fertilizer per year from 3 Urea Fertilizer Plants, but the actual demand is in the order of 600,000 Metric tons per year and the demand is increasing rapidly due to extensive cultivation of crops.

In order to fulfill the growing demand of Urea Fertilizer, the new two Urea Fertilizer Plants of 500 MTPD capacity each utilizing Onshore Natural Gas as feedstock are being constructed. One is located in Myaungdager nearly Yangon and another one is nearly Pathein in Ayeyarwady Region. Both plants are under commissioning and test run. Myaungdagar plant could be commenced urea production of 513.25 tons on 18.6.2011. In currently, Myaungdagar plant is being tried to continuously produce 500 tons per day of urea as per design capacity. Pathein plant could be commenced urea production of 482.00 tons on 15.4.2011 and it is also carried out to produce the design capacity. Onshore Natural Gas is produced from Nyaungdon Gas Fiuelds.

The Natural Gas specification of Nyaungdon Gas Fields is as follows:

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