2023In mid-July, Kyaukpyu Town, Rakhine State, Western Myanmar Three of the four Chinese-owned liquefied natural gas (LNG) power plants have ceased operations. The three shut down plants are located near the Kyaukpyu deep-water port project and are operated by Hong Kong-listed power generation company VPower Group. Two of the factories have ceased operations in 2022 and have been dismantled by VPower Group. Due to limited LNG supplies, the third plant has been running intermittently since November 2022 at only partial capacity and was also recently shut down after a period of low load operation.
VPower Group has stakes in nine power plants across Myanmar, which will be launched in 2021 In September, it said it would not renew power plant contracts in Kyaukpyu township in Rakhine state and Myingyan township in Mandalay region. The three power plants operated by VPower in Kyaukpyu have a combined capacity of 150 MW, and only one 135 MW power plant remains in the town.
The negative impact of Myanmar’s post-coup banking crisis on the local economy has not faded. The cash shortage has put foreign companies under pressure to operate, the Ministry of Power also lacks sufficient funds to pay power suppliers, and there has been a significant loss of overseas investment amidst political and economic instability. At the same time, the weaving of the Burmese kyat hindered the power purchase agreement, making it difficult for the local area to continue to use liquefied natural gas to generate electricity at the rate agreed in the power purchase agreement, and at the same time caused the local consumption of liquefied natural gas to decline.
According to my observation, small businesses in the local ice factory and cold storage industry are short of electricity Faced with huge operational obstacles. The high temperature was originally good news for the sales of refrigerators and freezers. However, in the case of power shortage in Myanmar, the start of work and consumption of related enterprises are hindered, and demand will usher in a period of sluggishness. As an important downstream of rigid foam polyether, the weak market in the field of refrigerated refrigerators and refrigerated containers has begun to affect the upstream market, and the demand for rigid foam polyether has been dragged down.
Myanmar is also actively seeking solutions. According to Reuters, India is considering electricity trade with Southeast Asian countries through Myanmar and Thailand, and India is working on connecting India's national grid to Myanmar.
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