OREANDA-NEWS. August 08, 2013. Daewoo International (Vice Chairman Lee Donghee) started gas production from its Myanmar gas field.

Daewoo International held a ceremony for the first gas production in the gas fields of Yangon, Myanmar.

Over 150 personnel attended the event, including Myanmar Vice President Nyan Thun, Ministry of Trade, Industry and Energy Vice Minister Han Jinhyeon, CEO Chung Joonyang, and Vice Chairman Lee Donghee, as well as representatives of Korea Gas Corp., Hyundai Heavy Industries, CNPC, ONGC, and GAIL, to offer congratulations on the start of gas production.
Following the event, a completion ceremony of the 780 km ground pipeline extending from Kyauk Phyu to the border of China was held at the Myanmar Central Mandalay Ground Pipeline Control Center.

The three gas fields of Shwe, Shwe Phyu, and Mya, which were found by Daewoo International starting in 2004, contain over 4.5 trillion ft? of buried gas available for exploitation, and together represent the largest oil and gas field in scale discovered by a Korean company abroad in the past 30 years.

As the facilities required for gas production and sales including the offshore production platform, undersea pipeline, ground gas terminal, and ground pipeline have been completed over the past four years, Daewoo International can now produce 120 million ft? of natural gas daily for export to China and utilization in Myanmar.

Once gas production is fully on line, starting in the second half of 2014, 500 million ft? of gas will be produced daily and sold to CNUOC for the coming 25~30 years. 500 million ft? of natural gas converts to 860,000 barrels of oil, which is the daily usage of 670,000 homes. Daewoo International expects the Myanmar gas fields to generate 300~400 billion KRW of profit yearly.

The Myanmar gas field project utilized the Success Repayable Loan System, sponsored by the government along with the Korea Gas Corp. and Daewoo International, and is expected to become a leading success story of simultaneously securing government funding and succeeding in a new corporate business project.

With the Myanmar gas field experience of Daewoo International, POSCO will continue to raise synergy between family companies, `Daewoo International (gas field exploration, production, sales)-POSCO Plantec (production platform construction)-POSCO E&C (plant construction)-POSCO Energy (power plant maintenance/operation).`