IEEJ：2009 年 5 月掲載

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(MIN-GA-LA-BA)
AUSPICIOUSNESS TO
YOU ALL

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IEEJ：2009 年 5 月掲載

ENERGY POLICY(A) – LEADERS TRAINING TYPE

COUNTRY REPORT

Presented by
Ms. Khin

May

Myint

Deputy Director
Energy Planning Department, Ministry of Energy
Myanmar2

IEEJ：2009 年 5 月掲載

INTRODUCTION
Myanmar is the Largest Country on the mainland South-East
Asia with a total land area 676,577 square kilometer. It has
population of 57 million and GDP growth rate of 12.7% for fiscal
year 2006-07 . As Myanmar is a Agro-based developing country,
most of the GDP is coming from Agricultural Sector which is about
40% . Mechanization for agricultural activities are still in its initialstage and still striving with limited capacity.
Myanmar is geographically located at the tip of the South
East Asia Peninsula and enjoys heavy monsoon and abundantsunshine all year round , which makes it ideal for accumulatingwater resources for hydro power and for agriculture activities .
Its topography features favor the existence of numerous
rivers , mountain ranges and sedimentary basins where mineraldeposits and mineral resources have abundantly accumulated . The
two major river systems enter the Bay of Bangal

and the2832 kilometer coastal strip along the southern part is also thegood area for the development of marine ecosystems andanabundant source for marine products and chemicals .
Myanmarisbasically

development trends
agriculture andmarket oriented

anagriculture

country

butrecentis to have a balance between emphasis onindustry . The change
created manyof

economic systemtoeconomic activities leading toincreasing demand for energy .
Myanmarisrichlynonrenewable types ofendowed

with

both

energy sources . The needrenewable

andfor increased

production of commercial energy ( such as Crude Oil , Natural Gas ,Hydropower and Coal ) is emphasized to meet the requirement ofindustrial development program .

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IEEJ：2009 年 5 月掲載

The Myanmar Ministry of Energy is responsible for thedevelopment of Oil and Gas Sector . It is one of the largest sector
in the Myanmar Economy andhave attracted

substantial foreign

direct investment . Intensive exploration and development activities
for Oil and Gas onshore and Offshore has been taking place since
the early nineties and plans have been made for the developmentof its downsteam sector .
The government of the Union of Myanmar , through the Ministryof Energy , hasdeveloped

policies focus onenergyefficiency

improvement , development of alternative and new and renewableenergy in all sectors , the maintenance of emergency oil stockpiles ,exploration & development of new energy resources and to reduce
dependency on oil import .
With the adoption of market oriented economy in 1989 , thegovernment
Myanmarprescribed

Foreign

the Myanmar

Citizens

Investment Law andInvestment

Ministry

of

Law ,

Energyhas

invited the multinational oil companies for exploration , drilling andproduction of Petroleum Products and Natural Gas on a Production
Sharing Basis .
(1)

CURRENT ENERGY POLICY AND MEASURESThe Government of the Union of Myanmar , through the

Ministryof Energy , has also developed policies focusedenergyefficiency improvement , development of alternative andnew& renewable energy in all sectors, the maintenance of

emergencyoilstockpiles ,exploration&

development

of

on

new

energy resources and to reduce dependency on oil import.
The Myanmar Energy Policy in general

strives towards

maintaining

thestatusofenergyindependencebyincreasing

indigenous

productionofavailable

primaryenergyresources

through intensive exploration and development activities. It also
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IEEJ：2009 年 5 月掲載

addresses electric power as the main driving power source for
economic development and the need to generate and distribute interms of volume, density and reliability.
The guidelines advocate the utilization of water resources, arenewable energy source for generation of electricity to save nonrenewable sources of energy such as fossil fuels for alternativeand future use. Conservation of energy is emphasized in order tosave energy through effective energy managements and to reduceenergyconsumption

so

as

to

minimizetheimpacttotheenvironment.
The guidelines

encourage

the development of renewableenergy sources especially solar and wind which are abundantunder Myanma’s climatic conditions. It also accepts the fact thatutilization of traditional energy sources such as fuelwood andcharcoal still needs to be practiced and regulatory and anticipatory
action is necessary for the sustained harvesting of thisprimaryenergy source.
To meet the challenges of demand growth in the 21st Century,
the following Myanmar Energy Policy will be pursued ENERGY POLICY

To maintain the Status of Energy IndependenceTo promote wider use of New and Renewable Sourcesof EnergyTo promote Energy Efficiency and Conservation; andTo promote use of Alternative Fuels in household

TO MAINTAIN THE STATUS OF ENERGY INDEPENDENCE
The
MyanmaOilanddevelopment

Gas sector placed as high priority in theagenda, following

thepolicyinitiativetotransform Myanma’s economy to a market oriented. Present crude
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IEEJ：2009 年 5 月掲載

oil production from onshore

fields is about ten thousand barrels

per day, while onshore gas production is on the average of
100 million cubic feet. From offshore areas, over 12,000 barrels ofcondensate

isproducedfromYetagunGas

production of Natural Gas from Yadana and

Field

and

the

Yetagun Gas Fields

are over 1.2 billion cubic feet per day.
Present

domestic

consumption

level

far

exceeds

thisproduction level and to have sustainable development of thenational economy, emphasis for intensive development for oil andgas resources is required.
The

Myanmar offshore area has very good prospects fordiscovery of natural gas. There are at present the Yadana Gas
Field having a reserve 7.84 Trillion cubic feet of gas and the
Yetagun Gas Field having a reserve of 4.345 Trillion cubic feet ofgas and 86.35 million barrels of Condensate. In the year 2007-08,
476.83 BCF

wasproduced

from

these

resources, exported

toThailand, amounting to over 1.2 billion cubic feet per day andCondensate

produced together with Natural Gas from Yetagun

field is used to fulfill for domestic consumption. According to BP’s
Statistical Review 2008, Myanmar is at the 11th position by mean ofpipeline export in the world.
Shwe Gas Project, discovered by Daewoo in block A-1 andA-3 and Zawtika Gas Project, discovered by PTTEPI in block M-9
are in progress to sell to China and Thailand respectively. Manyother multinational oil companies are now working at exploration
stages, with encouraging results.
Coal Sector
The Coal Sector in Myanmar is under the Ministry of Minesand its exploration, production and marketing for the government
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IEEJ：2009 年 5 月掲載

sector is carried out by an Enterprise organized under the same
Ministry.
Following the promulgation of the Myanma Mines Law in1994, which permits Private Sector participation in the mining
industry, the Coal reserves have been significantly improved to 711
million tons and the production of Coal was significantly increased.
This increase is due to seven private sector companies working
under large scale mining permits, compared to two from thegovernment sector. In recent years , the production of Coal has
increased significantly from 992.00 Tons in 2004.2005 to 1,118 Tons
in 2007-2008.
Due to the location of the resource, the Coal produced invarious parts of the country are utilized for local industrial usage
or sold as cross border Coal trade. Several Coal fired Cement
plants are already in operation in the Coal mining areas and Coalis in great demand. With the successful

startup and operation of

the newly Coal-fired power plant in the Shan State, the demand
for Coal is expected to increase further.
On

the

other

hand, theavailabilityofprimaryenergyresources in coal producing areas and the liberalization ofthePower Sector, attracts potential investors to invest in both power
generation

and

Coal

development

business

ventures. Thusasignificant increase in the share of Coal in the Myanma energy
mix is anticipated within a few years time.
With respect to regional cooperation, the Myanma coal sector
is a member of the ASEAN Forum On Coal (AFOC) and actively
participated in all events connected with the development andutilization of coal resources in the region.

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IEEJ：2009 年 5 月掲載

TO

PROMOTE

WIDER

USE

OF

NEW

AND

RENEWABLE

SOURCES OF ENERGY(a) Hydropower
The total installed electricity capacity during 2007-2008 is
1,782.32 Megawatt, out of which 725.80 Megawatt is from Gas
Turbine Power Stations, 802.73 Megawatt is from Hydro Power
Stations, 120.00 Megawatt

is

from

coal

fired Thermal

Power

Stations and 65.39 Megawatt is from Diesel Power Stations.
Myanmar

has

three

different

seasons (Summer, Rainy andCold) in a year, with a typical tropical climate. During the rainyseason, Myanmar receives a minimum rainfall of 100 cm in Central
Myanmar, 200cm in Northern Myanmar, and an average of 450cm
in Lower Myanmar. Four major river systems drain along the fourmain basins of Ayeyarwady, Chindwin, Thanlwin and Sittaung.
The geographic and tectonic settings of Myanmar favor tohave numerous rivers, streams and creeks and many mountain
ranges, which

makes

Myanmarabundantwithpotential

Hydro

Power resources.
The Hydroelectric Power potential of Myanmar is estimated toapproximately 108,000 Megawatt on an installed basis. In order toutilize the Hydro Power resources, the Ministry of Electric Power
No(1) studied and identified 86 potential Hydroelectric Power sites
with total installed capacity of 43,458.30 Megawatt.
(b) Geothermal
Myanmarhas five distinct igneous alignments. Wide spreadoccurrences of hot springs had been known to exist not only intheyounger

volcanic

age, butalsoin

non-volcanicormetamorphosed areas, where ground-waters heated at depths haveascended through faults, fractures and fissures.
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IEEJ：2009 年 5 月掲載

Hot springs are found in Kachin, Shan, Kayah, Southern partof Rakhine States and also in Central Myanmar area, ShewboMonywa area and especially in Mon State and Tanintharyi Division.
A total of 93 geothermal sites have so far been identifiedand

43 sites were preliminarily investigated by Myanma Oil and

Gas Enterprise (MOGE) in 1986.
MOGE

and

MyanmaElectric

PowerEnterprise (MEPE)

conducted studies in cooperation with Electric Power Development
Co., Ltd. (EPDC) of Japan in Mon and Shan States in 1987. Water
samples of hot springs were collected and chemical analysis and
X-ray diffraction performed from these samples.
MOGE in cooperation with UNOCAL of United States madepreliminary

analysisof

15 hotgeothermal

samplingofsprings

ZealandLtd. (GENZL) also

in

data

from

reconnaissance1990. Geothermal

performed

studies

EnergyNew

regardingthegeothermal potential during the same period.
In 1995, MOGE and CAITHNESS Resources Inc. of UnitedStates also performed reconnaissance study by collecting water
samples from 10 hot springs out of 43 hot springs which MOGE
has preliminarily investigated.
Surfacetemperaturerecordedduringthepreliminary

investigation on 43 hot springs indicate that the temperature ranges
from 26.7۫ C (80۫ F) to 65.6۫ C (150۫ F).
(c) Solar
Producing energy from solar for the development of ruralarea is one of the priority areas of energy research . New Energy
and Industrial Technology Development Organization (NEDO) of
Japan performed in 1997 a study on renewable energy in Mekong
Basin

Countries

andassessed

that

Myanmarhasavailable Solar Energy of 51973.8 Terrawatt hour per year.
9

potential

IEEJ：2009 年 5 月掲載

9Research works on utilization of Solar Energy by Myanma
Science, Technology and Research Department (MSTRD) of the
Ministry of Science and Technology and Physics Department of the
Yangon University under the Ministry of Education.
Someexperimental

installationof

Photo-voltaic

Power

Systems in collaboration of Energy Planning Department have been
performed in 1997 by Royal Thai Energy Industry and ESCAP
Office

and

also

by

EnergyServices

andIncome-Generating

Opportunities for the Poor (Project-ENSIGN).
New

EnergyandOrganization (NEDO) of

Industrial

Japan

also

Technology
installed

Development

Wind

and

Solar

measuring instruments in collaboration with Department of ElectricPower and Myanma Electric Power Enterprise , feasibility study madeon Solar-Wind Power Hybrid System in 1999.
(d) Wind
NEDO of Japan performed in 1997 a study on renewableenergyinthe

MekongBasin

Countries

andassessed

that

Myanmar has potential available Wind Energy of 365.1 Terrawatt
hour per year.
Judgingfromexisting

available

Department of Meteorology and

Wind

data

collected

byHydrology (DMH), western part ofthe country is the potential area for development of Wind energy.
Evaluation

and

study

on

wind

resourcesusing

moderndataacquisition systems are carried out since 1998.
NEDO also installed Wind and Solar measuring instruments incollaboration with DEP and MEPE and a feasibility study made on
Solar-Wind Power Hybrid System in 1999.

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IEEJ：2009 年 5 月掲載

Research works are being carried out to construct 10 KW
wind turbine which provides sufficient electrical power for one
village including 200 houses.

(e) Biofuels
To alleviate the dependence

on import of liquid fuel, toovercome the current energy situation and to minimize the Global
Warming condition, every countries effort to search ways andmeans of appropriate technology for renewable energy within the
country.
Ministry of Energy issued specification for Biofuels and takeresponsibility of monitoring the distributed Biofuels’ specification is
acceptable or not. Plan is drawn for Biofuels distribution andpreparingtheNotification

involvement

in

Biofuelstobeissued , forhandling, storage

andprivatesectorsellingasperdevelopment

of

the

grown

in

regulations and procedures.
As
Biodieselper

Government’s

guidance

production, Jatropha

Curcasforplantsarehomesteads and cultivable land to use its oil as alternative fuel. It
is planned to plant 7 million acres of Jatropha Curcas in every
State and Division of the country within 5 years. This program isstill on going. By the time the programme is fully on stream,
Myanmar should be producing Jatropha Oil annually.
The present status of Ethanol production from sugarcane in
Myanmar is large scale conducted by private sector. One of theprivate companies, has installed an alcohol distillation unit, capacityof 11 million gallons anhydrous ethanol per annum and alreadyproduced 860,000 gallons of anhydrous ethanol from sugarcane.
Private companies are planning cassava and sweet sorghum inlarge scale for ethanol production.
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IEEJ：2009 年 5 月掲載

In an unprecedented shift, the world cereals reserves are
depleting and food supply is dwindling rapidly with food prices
soaring to highest levels. With population growth , climate change,
Biofuels and Fossil fuel prices are major factors contributing toward
increase in global food prices. Already unusual weather events
linked to climate change make to decrease production in major
exporting countries.
The Government is making great efforts not only to ensuresufficiency of rice for country’s population of 57.65 million people
but also to share the surplus with needed countries. In 2007-2008
over

20 million acres of paddy were cultivated producing over

31.5 million metric tons. With the consumption of a little over 19.8
million metric tons at the rate of 206kg per person per annum,
Myanmar has the total surplus of 11.7 million metric tons of paddy
equivalent to about 7 million metric tons of milled rice. Myanmar
still has 14.8 million acres of arable land yet to be utilized andrich water resources.
The Government is making arrangement to reduce the CO2
emission by increasing natural gas utilization in industrial sector
and power generation, by converting Gasoline, Diesel and LPG
vehicles to CNG vehicles and also using Biofuels.
TO PROMOTE ENERGY EFFICIENCY AND CONSERVATION
Myanmarhasabundant

indigenous energy

resourcesandmeasure are yet to be taken to utilize systematically, in order tohave a sustained development of country’s economy.
As the country’s economy has been growing, the demand forenergy is rapidly increasing than can be supplied. Initiatives are to
be taken for promotion of energy conservation programme both at
the supply side and consumer side.
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IEEJ：2009 年 5 月掲載

The

PromotionofEnergyEfficiency(PROMEEC ) Project was started in 2000, andandConservation

its on the ninth

year of implementation . Phase-1 and Phase-2 was successfullycompleted in 2003 and 2008 respectively.
The Government has initiated the two administrative actions forgovernment offices and vehicles such as all government building
to use daylight for illumination during office hours as much as
possible , all government vehicles have to observed two dry days amonth except emergency circumstances and vehicles on duty andahigh-level

inspection

team

is

constantly

monitoring

thecompliance to the government energy conservation initiative .
TO PROMOTE USE OF ALTERNATIVE FUELS IN HOUSEHOLDMyanmar having a tropical climate with three general seasons
is richly endowed with forest resources. According to the Forest
Resource

Assessment in2005 , 49%(32.2 million hectares ) is covered

of

the

total

land

area

with different types of forest in

Myanmar.
The 1995 Myanmar Forest policy stipulates to keep 30% of
the total land area of the country PFE ( Permanent Forest Estate )and 5% under PAS( Protected Area System ) .

As a developing and agricultural based country , woodfueland charcoal are the main sources of the bio – energy used in
Myanmar . About 76% of total population are residing in rural areas
and mainly

used the woodfuel for cooking. The urban population

has been using charcoals , accounting for 4% - 6% of the total
woodfuel .
In order to protect the environment and climatic conditions of
the country , deforestation measures are seriously being undertaken by
the government , especially in the dry and arid areas of the country .
ForestDepartment has taken measures
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for meeting bio-energy

IEEJ：2009 年 5 月掲載

demand of country within its capacity by establishing fuelwood
plantations and community forests .
On the other hand , the department has encouraging use ofenergy in efficient way by distributing efficient stoves and use ofalternative

energysourcessuchasagricultural

wastesandbriquettes as woodfuel substitutes.
As ameasure to use alternative fuel , emphasis has been

made to use Liquefied Petroleum Gas households . The Forest
Department has established a total of 0.93 million ha of forest
plantations until 2008 , of which 22.8% are the fuelwood plantations
for village supply .
Dissemination
Department

asofefficientproject

stovesactivities

was

which

initiated

were

by

Forestimplementedincooperation with UNDP/ FAO in 1990s . FD has been implementing
the Bago Yoma Greening Project ( Since 2004-2005 ) and project
activities include dissemination of efficient stoves and utilization ofwoodfuel substitutes such as briquettes and agricultural wastes .
Generally , althoughimplemented

and

the

projectmonitoredbyactivities

FD , The

are

being

activities

like

dissemination of of efficient stoves and utilization of woodfuelsubstitutes are mainly being implemented by Dry Zone Greening
Department , Ministry of forestry .
Up to January 2009, 0.2 Million of efficient stoves including
A1 stoves and rice-husk stoves has been distributed free of charge
or at an affordable price with the object of reducing energy waste
under Bago Yoma Greening Project .
A1 stove can save 40% of woodfuel . Similarly , the project
achieves in encouraging production and utilization of 4.3 million
briquettes anduse of 0.56 million ton of agricultural wastes asalternative energy.
14

IEEJ：2009 年 5 月掲載(2) ENERGY DEMAND AND SUPPLY
Myanmar is a developing country and its economy is based
mainly on agricultural products. Most of the GDP is coming fromagriculture sector which is about 40% where as industrial sector
is contributing 10% during early 1990s. As such , the consumptionof crude oil / petroleum products has never been very large
before 1988-89.

MyanmarhaslaunchedtheMarketOriented

Economy in 1989 , the state has made tremendous efforts toimproved the nation’s basic infrastructure such as roads , bridges ,communication systems created many economic activities leading toincreasing demand for energy .
The primary energy supply in Myanmar during 2001-02 to
2007-08 are as follows 2001-

2002-

2003-

2004-

2005-

2006-

2007-

02

03

04

05

06

07

08

1991

1924

1924

1961

1756

1751

1753

1033

1264

1428

1512

1480

1582

1775

Coal

71

76

123

196

351

501

558

Hydro
Power

772

743

788

926

1154

1278

1416

Biomass

8036

8249

8615

8528

8691

9045

9280

Total

11903

12256

12878

13123

13432

14157

14782

Crude Oil&Petroleum
NaturalGas

GrowthRate(+)2.9% (+)5.1% (+)1.9% (+)2.4% (+)5.4% (+)4.4%

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IEEJ：2009 年 5 月掲載

Energy consumption in Myanmar is mainly dependent upon
traditional energy such as Fuelwood and Charcoal . Commercial
energy ( Crude Oil , Natural Gas , Hydropower and Coal ) makes upof only 40% of

the total energy

consumption . Woodfuel energy

constitutes as much as 60% to 65 % .
In

2007-2008

total

energyconsumptionofMyanmaramounted to 14,782 KTOE where as Crude Oil at 1753 KTOE ,Natural Gas at 1775 KTOE andHydel sources at 1416 KTOE

Electric Power generated fromrespectively .

The total supply and consumption amount in the last four
year

periodhas

beensignificantly

infrastructure development , newincreased

due

to

the

investments , rising population and

expension of human activities in the country.
Myanmarisrichlyendowed

with

both

renewable

nonrenewable types of energy sources. The needproduction of commercial energy

andfor increased

is emphasized tomeet therequirement of industrial development program.
To meet the increasing demand , the following efforts havebeen made to boost the current production of energy –- The import volume of crude oil /petroleum products has tobereduced

and

at

the

same

time

administrative /management measures are taken to effect the efficientconsumption of crude oil / petroleum products- The

government

has

been

implementing

campaign for efficient and effective use ofawareness
energybypublicizing the energy efficient slogans on the media- The government is also implementing the substitution ofnatural gas for liquid fuel in the transport sector . So far a

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IEEJ：2009 年 5 月掲載

total of over 25,000 vehicles have been converted to
Natural Gas Vehicle.
- On the other hand , the government is guiding development
programs in research on bio fuel such as Ethanol , Gasoholand Bio-diesel

as an alternative energy to be used inTransport Sector- In the electric power generation sector , the government isconverting from
gas

based

liquid fuel based generation to naturalgeneration, more

than

60%

of

domestic

natural gas production are supplied

to power generation

plants . Furthermore the government

is putting a higher

priority

to development of hydro power plant , sothathydel based generation will eventually become a basedload generation- The demandside measures are also taking into accountin order to reduce
products tothe import quantity , the supply of

the government sector was tightly controlled

and allowed with respect to the work loads and projectpriorities- For private sector the quota system is applied on monthly
basis , as the government is heavily subsidizedon theprice of Motor Gasoline and High Speed Diesel.
- For private Industries and Manufacturing Sectors , thegovernment is selling in US $ / FEC earned from theirbusiness without limiting the quantity- For the time being, Myanma Petroleum Products Enterprise,
under the Ministry of Energy is practicing the daily floating
price mechanism based on Singapore Platt’s Oil price17

IEEJ：2009 年 5 月掲載(3)

MAJOR DIFFICULTIESAND

BOTTLENECKS

CURRENTLYFACED IN FORMULATING ENERGY POLICIES- Measures for increased production of Commercial Energy
to replace the Traditional Energy- Acquisition of Modern Technology- Acquisition of Financing Support- Development programs in research and development on
Alternative Energy (Ethanol, Gasohol, Biodiesel etc:)- Arrangementto

implementtheEnergyEfficiency

andConservation(4)

SUBJECTS I WOULD LIKE TO STUDY IN THE ORDER
OF PRIORITY AND THE REASONThe subjects I would like to study and the reasonsare as follows -Introduction of Market Principle in Energy Field
Due to current

financial crisis faced all over the world ,Market Principles are importantto formulate in

Energy Sector .

Therefore I would like to acquire sound knowledge

so as toformulate the Energy Market Policies .

Survey Technique for Energy Statistics Data
In order to meet the day by day increasing demand, theguidelines of Survey Techniques are in need to collect the Energy
Statistics Data .

Energy Demand Forecasting in the World

18

IEEJ：2009 年 5 月掲載

Energy demand has been rapidly increasing due to economic
development , newinvestments, rising

population, expansionofhuman activities in the country.
In order to meet the increasing demand, efforts are need toboost the current production of Energy. I believe that this lecture
will surely provide more & more knowledge to focus the energy
demand.

CONCLUSION
With the economic development and new investments in the
country, demand for energy has been increasing . In order to copewith the increasing demand , utmost efforts are being made firstly
to balance the supply – demand gap and to make plans for thefulfillment of future energy requirement .
Plans

are

in

progressto construct Onshore

NaturalGas

Pipeline Network , so as to transport Natural Gas from surplus
region to deficient region . On the otherhand , execution of plans todiscover new energy resources will be put as high priority .
Natural Gas reserves in offshore area are being developed
and produced . Plans are being laid to construct a pipeline from
Myanmar offshore area to onshore area , to utilize offshore gas fordomestic use. Also plans are underway to sell the Natural Gas
from Shwe Project in Rakhine offshore area to China via pipeline
to Myanmar- China border .
To meet the increasing electricity demand of the Country,
more Hydroelectric Power Projects will be implemented and also
Electricity Power Plant utilizing Natural Gas will be utilized as step
gap measure before Hydro Electric Power Plants are operable.
Plans

are

in

progress to perform

more

researchandexperimental works to utilize renewable energy sources such as
19

IEEJ：2009 年 5 月掲載

Geothermal, Wind and Solar in place of nonrenewable energy
sources.
Being a member of ASEAN , In order to strengthen theregional integration of economic cooperation, Myanmar is actively
participating in the Energy Sector Cooperation Programs.
ENERGY POLICY IN MYANMAR

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