Natural Gas Master Plan for Myanmar

Natural gas will play very important role in Myanmar in the future. Natural gas demand in Myanmar is forecasted to grow from 457 million cubic feet per day (mmcfd) in 2017 to 1,097 mmcfd in 2040. Although demand from the power sector will continue to lead demand growth in the country, demand from the industrial sector and (after 2030) the residential sector is also expected to grow significantly. As the country’s dependence on natural gas grows, its domestic infrastructure will need to be upgraded. The pipeline connecting Shwedaung and Magway in particular needs to be renovated urgently. Gaps between demand and supply are expected to appear in Myanmar’s natural gas balance around 2023. Importing LNG will likely be the most realistic option to fill in the gaps and deploying floating storage and regasification units will make it relatively easy to import LNG into Myanmar. The Government of Myanmar should continue to play a pivotal role in developing the natural gas market. Policy recommendations to the Myanmar government are, 1) provide policy support to create demand, 2) encourage domestic upstream development, 3) enhance the resilience of the pipeline network, 4) reform the energy pricing system, 5) manage quality issues with natural gas, and 6) grow human capital.