myanmar: insights, challenges & initiatives · mandalay and other state capitals • remote...
TRANSCRIPT
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MYANMAR: Insights, Challenges & InitiativesInternational LP Gas Seminar 2019, Tokyo, Japan, 5-6 March
Steve McBride, COO, Parami Energy
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Varying Road Cultures
YANGONTOKYO
….Beware Pedestrians & Drivers!
Safety MomentDriving & Pedestrian Cultures
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Parami Energy: Our Business
Upstream E&P Power Gen LPG
?
Corporate Social Responsibility
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Myanmar Insights
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Myanmar Energy
3
• 14 States / Regions
• Population 55 Million
• Only 30-35% access to electricity
• MoEE Target: 100% by 2030
• 81% population use firewood &
charcoal for cooking *
• LPG supply approx. 100,000 MT
per annum
• LPG Supply Forecasts predict
increase of ~ 15% per year for next
5-10 years ^
Source: * Ministry of Natural Resources and Environmental Conservation ^ Gas Academy
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Myanmar At a Glance
Source: IMF, ADB, World Bank, MOEP, MOE, DICA, UNFPA, Parami Energy Analytics
• 10 Million Households Nationwide
• ~ 70% of Households cook with Electricity
• Frequent power cuts, peak Load during meal times, and in summer
• Many households keep LPG as contingency
• Rapid Deforestation
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Myanmar• Population 55 Million• Consumption 100,000 MT• Only 5% of Market Penetration
Myanmar
Thailand
Bangladesh
Vietnam
Gulf ofThailand
Cambodia
Laos
Malaysia
Bangladesh• Population 164 Million• Consumption 500,000 MT• Fastest Growing Market in
the World in 2017• LPG displacing Natural
Gas as a cooking fuel
Region Comparisons
Cambodia• Population 16 Million• Consumption 200,000 MT
Thailand• Population 69 Million• Consumption 4M MT• ~90 % penetration
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Government LPG Licensing
US$ 1 =MMK 152326-Feb-2019
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Parami Energy: Rental LPG Terminal (License A)
• Open Tender – 28/7/2017
• Awarding Letter – 18/9/2017
• Allowed Improvement,
Investment & Operation Nov 17
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Myanmar Govt LPG Target
3
• MoEE objective is to migrate 1 Million
Households to LPG Cooking by 2020
• Legacy target 2 Million Households
• Yangon ~ 1 Million Households and
Mandalay ~ 400K Households
• Households cooking with LPG **
• Not all use LPG as a primary source
• Parami Energy aims to be a leader in
helping the Govt meet their objectives
~5%
Source: ** MPE
Yangon
Mandalay
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Myanmar Challenges
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HSE Culture & Energy Literacy
• HSE Culture requires significant
improvement to progress
• Leadership: Business and Govt
• Natural human tendency:
Cost focused …especially in a nation
with limited disposable income
• Market Survey (in urban areas)
reveals minimal awareness of health
risks … with focus on Cost, Kitchen
Cleanliness & Clothing Damage
• ”Energy Literacy” initiatives have
helped in the Thailand E&P sector
✓ Robust HSE Leadership✓ Energy Literacy Initiatives
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Supply: Importation
3
• Thanlyn Terminal cannot receive a
VLGC due to limited draft
• Maximum size is 2000 MT / 95m
• Many vessels of this size are fully
occupied with booming markets
such as Bangladesh
• DW ports are being built
• But a long way from urban areas
with challenging internal
infrastructures currently
• Assured Origin of Cargoes
✓ Reliable long term partners for annual LPG supply
Myanmar
Bangladesh
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• Complex urban distribution:
• Congested Urban areas of Yangon,
Mandalay and other State Capitals
• Remote Rural areas pose problems
across different dimensions
• Substantial Associated Investment
with Nascent Business:
➢ Cylinders & Filling Stations
➢ Warehousing & Security
➢ Delivery Transportation
Distribution & Investment
✓ Customised approach supported by mobile application technology
✓ JV Partnerships
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LPG Regulation
3
• To ensure LPG industry grows safely
and provides a high degree of
confidence to the general population
• Avoid issues & incidents experienced in
other Asian countries, as well as globally
• World LPG Association (WLPGA) offers
guidance and counseling
• National LPG Association is needed with
appropriate Govt support
• Must be effective and pragmatic
✓ Establish inclusive LPG Association✓ Implement LPG Regulations
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Electricity Competition
3
• High electricity subsides
• US$0.03/kWh & double that commercially
• Lowest price in ASEAN > Unsustainable
• Cost of supply is approximately 3x
• Has been a reluctance to amend due to
political sensitivity
• 100% access to electricity by 2030 will
require investment of > $30 billion (W.B.)
• Remove commercial subsidies• Reduce residential subsidies• Apply selective subsidies e.g. schools
✓ Introduce LPG Subsidy?
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Myanmar Initiatives
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Traditional LPG Industry Approach
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Parami LPG Approach
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Alternative Clean Energy Initiative Benefits:
3
✓ Enhance Health and Well-Being
✓ Eliminate Premature Deaths due to
Indoor Air Pollution
✓ Reduce Electricity Consumption
(help National power conservation)
✓ Environmentally Friendly, contributing to
reduced deforestation (….another Govt
Ministry's objective)
✓ Convenient, Accessible & Transportable
✓ LPG is Very Safe .....
…when regulated!
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▪ To develop a female-only
distribution network
▪ To empower Myanmar women by
providing a viable business
opportunity
▪ To promote leadership by Myanmar
women in developing communities
▪ One Parami Female “Champion” for
every Quarter in city districts
▪ Warehouses in Yangon to supply
Parami LPG to all the distributors
Parami LPG Female Distributor Initiative
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Kick-Off Via Yangon Woman Associations
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Aggressive Marketing Initiative
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LPG CSR Initiative
Community Kitchen Project
#1 Hopong, Shan State (November 2018)
Community
Kitchen Project
#2 Magway
Region (April 2019)
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Parami Energy and the Community : LPG CSR
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Technology Synergies …..Off-Grid Power Gen
▪ Parami is currently
constructing 2 Mini-
Grid systems in
Central Myanmar
▪ Yesagyo is 288kw
Solar & 160kw
Diesel Gen-Set
▪ Assessing the
potential of using
LPG Engines
▪ Cleaner, more
efficient ……..but
not so economical
(with fixed Tariff)
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WLPGA Initiatives in Myanmar
✓ Parami Energy: First WLPGA
Member in Myanmar
✓ We recognize the inherent
benefits that membership can
deliver to the industry.
✓ WINLPG preliminary session in
Nov 2018
✓ WINLPG Myanmar Chapter will
be formally launched in early
April 2019
✓ Parami COO is a WINLPG
Ambassador for SE Asia.
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Myanmar (Burma) Represents A Significant
Opportunity, at the same time considering:
Market
• Urban Areas >> Subsidies
• Rural Areas >> Health & Environment
• Accelerate Rate of LPG adoption via enhancing
HSE practices and Energy Literacy
Government
• Regulations >> Implement and Reinforce
• Industry standards and practices >> Apply
• Incentives and Investment >> Introduce
PARAMI MISSION: Safe and Efficient Supply
From Jetty to Myanmar Family Kitchens
Summary
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Japan has been investing and engaged in Myanmar without interruption for the past 77 years
Myanmar
A Profound Parting Thought:
ありがとうございましたArigatō Japan!
Japan
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2019 LPG Events in Myanmar:
3rd - 4th
April 2019
12th – 14th
November 2019
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Questions?