The Ministry of Energy stated that Phase 1 of the project, currently underway at the No 1 Oil Refinery in Thanlyin Township, Yangon Region, is expected to operate in a new format to partially meet the country’s fuel needs and produce 500,000 tonnes of crude oil annually.

Short-term and long-term plans are being developed to ensure the continued operation of the oil refinery, which can process three million tonnes of crude oil per year as part of Project 2, and is expected to meet approximately half of the country’s fuel needs upon the project’s completion.

Drilling is currently underway using a Horizontal Directional Drilling (HDD) machine to identify designated areas for constructing pipelines to transport crude oil and petroleum products and to connect the Bago River section of the South Dagon-Thanlyin natural gas pipeline.
The Thanlyin Refinery, which previously produced gasoline, diesel, jet fuel, and kerosene, suspended operations in 2017 for review and implementation in alignment with the State’s economic policy.

State-owned refineries currently produce only about 3 per cent of the petroleum products consumed domestically, prompting the ministry to intensify efforts to increase production.

ASH/TH

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