Weekly Business Roundup (August 01, 2009)

Salween Dams Discussed at Asean Mandalay Meeting
 
Thai state energy company executives have been meeting Burmese energy ministry and state agency officials on the sidelines of the Asean energy ministers' meeting in Mandalay.

It's understood that, among other issues, the two sides discussed the two planned controversial hydro-electric dams on the River Salween close to Burma's border with Thailand.

Thai representatives included officials from the Electricity Generating Authority of Thailand and PTT, the state oil and gas conglomerate.

Sources at the Thai energy ministry told The Irrawaddy that the two proposed dams, Hatgyi and Tasang, are meant to supply electricity mainly to Thailand but their delayed development has now been overshadowed by a downward revision in Thailand's future energy needs forecast.

The massive Tasang dam is planned to have a generating capacity of about 7000 megawatts—more than triple Burma's entire grid capacity.

International environmentalist and human rights groups say the dams would undermine the Salween's stability and ecology and the livelihoods and homes of thousands of local people.

"There is a growing possibility of a bigger Chinese involvement in developing these dams and a lot of the electricity could eventually be transmitted to China, where there is a huge and growing demand," said an energy official who spoke on condition of anonymity because of the sensitivity of the subject.

China was represented at the Asean meeting in Mandalay—where extra electricity was laid on in a city which normally suffers prolonged blackouts—along with Japan and South Korea.

The meeting seeks to improve energy security in East Asia and cooperation through shared cross-border supply of electricity. Alternatives to oil and gas for power generation were also discussed.
 
Vietnamese Ready to Drill in Burma's Martaban Gulf
 
The Vietnamese state oil company PetroVietnam is ready to begin exploratory survey drilling in Burma’s Gulf of Martaban as part of its joint venture with the junta-linked construction firm Eden Group.

The Vietnamese have a license from the Myanmar Oil and Gas Enterprise to explore in offshore block M-2 in the Gulf.

The block is in an area where the rich Yadana gas field has been supplying Thailand for several years, and where a Thai state company has found big new gas reserves.

The Thai firm PTTEP says it has confirmed at least 50 billion cubic meters in M-9 Block, raising speculation that the PetroVietnam exploration will also yield a positive find.

The gas from the M-9 block is also destined for Thailand after production begins in about 2014, but it remains unclear who would buy any gas found by the Vietnamese.

Eden Group is controlled by Burmese tycoon Chit Khaing, known to have close ties to the military regime.
 
Bangladesh Urged to Challenge Burma’s ‘Illegitimate’ Sea Claims
 
The Bangladesh government is being urged to lodge a formal complaint to the United Nations over "illegitimate claims" by Burma and India to large swathes of the Bay of Bengal.

The claims "demonstrate disregard for the independence and sovereignty of Bangladesh," said the Bangladesh Resources Protection National Committee in a statement this week.

The committee said the government needed to take action now in preparation for its 2011 maritime boundaries submission to the UN’s Law of the Sea agency.

Burma, Bangladesh and India continue to dispute sea territory in the Bay of Bengal fronting their coastal regions, but the issue has become more contentious as all three countries seek to expand offshore exploration for oil and gas resources.

Only last week the Bangladesh government admitted its electricity generating industry is suffering from a shortage of gas to fuel power stations, leading to increased blackouts.
Burma and Bangladesh lay claim to sections of the Bay where large reserves of undersea gas are believed to exist.

"If Bangladesh does not raise its voice strongly now, it will face serious difficulties in 2011," said the committee statement.