Exclusive Development Rights Acquired for Thilawa LNG To Power Project in Myanmar

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo), together with Marubeni Corporation (hereinafter, “Marubeni”), Mitsui & Co., Ltd. (hereinafter, “Mitsui”) and Eden Group Co., Ltd. (hereinafter, “Eden Group”) (hereinafter collectively referred to as “the four companies”), has received a Notice to Proceed (“NTP”) granting exclusive development rights for the Thilawa LNG to Power Project (hereinafter, “the Project”) in Thilawa, Yangon, Myanmar, from Myanmar’s Ministry of Electricity and Energy (“MOEE”).

The Project is to build, own and operate a 1,250MW gas-fired thermal power plant, one of the largest in Myanmar, as well as an onshore LNG storage/regasification facilities. In accordance with a long-term power purchase agreement, generated power will be sold to the Electric Power Generation Enterprise (“EPGE”), a state-owned enterprise under MOEE, over a period of 25 years after commercial operation date. The scope of the Project is also expected to include the procurement, transport, storage and regasification of the LNG as primary fuel. The four companies will study the feasibility of this Project in accordance with the NTP.

Rapid economic growth in Myanmar has tightened the electric power supply and demand balance, and IPP (Note 1) projects by foreign investment are expected to help in this regard. In the Thilawa region of Yangon, Sumitomo Corporation is involved in developing and operating an industrial park within the Thilawa Special Economic Zone, which has one of the highest levels of electric power demand in the country.

Sumitomo Corporation is involved in numerous power generation and construction projects both inside and outside Japan, and it has completed construction of a gas-fired thermal power plant in the Thilawa region. Its endeavors have also extended beyond the power generation sector to LNG-related businesses. In pursuing this Project, Sumitomo Corporation will be utilizing the wide-ranging knowledge and extensive network that it has developed as an integrated trading company to help further ensure a stable supply of electric power in Myanmar.

(Note 1) IPP: Independent Power Producer

 

<Reference>
■ Overview of Thilawa LNG To Power Project

Project site	:	Thilawa, Yangon, Myanmar
Generation capacity	:	1,250MW
Power off-taker	:	Electric Power Generation Enterprise
Power sales period	:	25 years after commercial operation date

 

■ Profiles of companies involved
● Marubeni Corporation

Year established	:	1949
Representative	:	Masumi Kakinoki, President and CEO
Location	:	Chuo-ku, Tokyo
Business category	:	General trading company

 

● Mitsui & Co., Ltd.

Year established	:	1947
Representative	:	Tatsuo Yasunaga, President and CEO
Location	:	Chiyoda-ku, Tokyo
Business category	:	General trading company

 

●Eden Group Co., Ltd.

Year established	:	1990
Representative	:	Chit Khine (Chairman)
Location	:	Yangon, Myanmar
Business category	:	Local conglomerate

 

■ Site location

 

■Sumitomo Corporation’s  Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Achieving Harmony with the Global Environment”, “the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles”.

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