Yangon – According to the Ministry of Energy, the price for exported natural gas declines due to the low gas price in the global market.
Currently, the wellhead price for 1 million cubic feet of natural gas is only US$ 5 million. The pipeline and distribution price is also declining.
“We could sell a little over 5 dollars per cubic feet… about one or two dollars less than the usual price,” said an official from the Ministry of Energy.
Although natural gas price would fall once every year, one million cubic feet could fetch more than US$ 7 million. At the peak, one million cubic feet could fetch up to US 11 million.
The Myanmar government adjusts its natural gas price quarterly i.e. four times a year: from April to June, from July to September, from October to December, and from January to March.
Since the natural gas price is fixed each quarter in Myanmar, it is not influenced by daily and monthly price in the global market.
Myanmar has four ongoing natural gas projects. Out of them, Shwe Natural Gas Project started selling its extracted gas in November 2013, and Zawtika began exporting natural gas to Thailand in August this year.
The Shwe project in offshore Rakhine State is tendered to Daewoo International while Thailand’s PTTEP won the Zawtika project in the Gulf of Mottama.
On the other hand, France’s Total is extracting in Yadana Natural Gas Project and Petronas has invested in the Yetagun Project.
Natural gas from Yetagun and Shwe has a Btu of 1,000 and that from Yadana has a Btu between 650 to 700.