Mee Lin Gyaing Integrated LNG to Power (1390 MW)

1.1 PROJECT OVERVIEW AND PROJECT NEED

Only half of Myanmar’s population had access to electricity in 2019, presenting a significant challenge for economic development and hampering the country’s economic growth. To face rising demand, the Ministry of Electricity and Energy (MoEE) developed the National Electrification Project, which plans to reach full electricity distribution across Myanmar by 2030. Supreme Trading Co., Ltd. in collaboration with its international partners is working with the Ministry to achieve this goal for the people of Myanmar.

The Myanmar government approved four gas-to-power projects with a combined capacity of 3,111 megawatts (MW). The Mee Lin Gyaing Integrated Liquefied Natural Gas to Power Project is the largest of its kind. It will generate 1,390 MW of power, provide significant advance to Myanmar’s engineering sector, develop the country’s infrastructure and economically uplift the community.

The Mee Lin Gyaing Integrated Liquefied Natural Gas to Power Project is located at Mee Lin Gyaing Village, 60-km northwest of Pathein and 40-km north of Chaung Tha Beach in Shwe Thaung Yan Township, Pathein District, Ayeyarwady Region. The project is an Independent Power Producer (IPP), and will be implemented through the Build, Operate, and Transfer (BOT) system. The Notice to Proceed (NTP) in development of the project was granted by the Ministry of Electricity and Energy on January 30th 2018.

The project developers include: Supreme Trading Co., Ltd., and Zhefu Holding Group, Yunnan Provincial Energy Investment Group, and Union Resources & Engineering. With project developers listed at 85 in China Top 500 Company in service enterprise categories and 70 in top 100 multinational enterprise and having “AAA” in Corporate Credit Rating and “BBB” in International Credit Rating, they have ensured the highest grade of technical expertise and international best practices have been implemented. Aiming to start producing electricity by September 2024, the project will generate 1390 MW to the country.

The generated electricity will be dispatched to the largest and major economic city of Yangon through a new 500 kV transmission line and the project’s nearby area of Ayeyarwady region through 230 kV transmission line. As per the National Electricity Generation Plan, the project will meet the necessary electricity requirement by base load and firm power and is a key component towards executing the national energy policy for electricity generation. The project will be the largest electricity generation capacity plant in the Republic of Union of Myanmar and the fuel will be imported Liquified Natural Gas (LNG).

The project involves the construction and operation of:

1390MW combined cycle power plant,
Independent port with water breaker for LNG receiving facility,
On land-based Regasification Plant, and
500kV and 230kv transmission lines to Yangon and Ayeyarwady regions.

**Bird’s-eye View Model of Mee Lin Gyaing 1390 MW Integrated LNG to Power Project**

KEY BENEFITS

In line with Myanmar’s Development Plan and National Electrification Project.
Will meet the necessary electricity requirement by base load and firm power.
Encourages Foreign Development Investment (FDI) due to guarantees in sufficient and stable electric power supplies
Will deliver the lowest cost tariffs in comparison to other proposed LNG power plants.
While the overall generation cost and tariff is on par with coal power generation, LNG does not damage the environment in the way coal does.
According to the National Development Strategy, increasing electricity availability and usage will have a profound effect on the west coastal regions, resulting in development including new businesses and urban infrastructure.
Will create employment opportunities during construction and concession period and the knock-on effect of development in the area will lead to more jobs in various industries and business sectors.
Key requirements of the project including roads, bridges, a deep water sea port, storage units, and transmission lines will help to develop the infrastructure sector.
Construction of the jetty and breakwater – an essential part of the project design – will also act as an effective cyclone shelter for local communities during natural disasters.

1.2 PROJECT BACKGROUND

In March 2016, China Zhefu Holding Group Co., Ltd. and Supreme Trading Co., Ltd. signed a Memorandum of Understanding (MOU) with the Ministry of Electricity and Energy (MOEE) and officially launched the preliminary study of this project. In May 2017, the project consortium submitted the pre-feasibility report to MOEE. On 30th January 2018, the project consortium received a Notice to Proceed (NTP) from the Ministry of Electricity and Energy to start conducting the feasibility study, further engineering plans, and project permits.

**Notice to Proceed Signing Ceremony January 30th 2018**

**Letter of Intent for Acceleration Signing Ceremony January 16th 2020**

The LOI – Letter of Intent for Acceleration of Mee Lin Gyaing Integrated LNG to Power Project was signed between the Ministry of Electricity and Energy (MOEE) and the project consortium on 16th January 2020, during the state visit to Myanmar of President of People’s Republic of China. This was signed for acceleration of the project by the project consortium; Zhefu Holding Group, Supreme Trading Company, Yunnan Provincial Energy Investment Group and Union Resources & Engineering Co., Ltd.