A subsidiary under state-owned Thai energy giant PTT has said it will suspend oil transport and storage operations in Myanmar. The move was announced a week after losing one of the world’s largest sovereign wealth funds as an investor.
The subsidiary, PTT Oil and Retail Business (PTTOR), holds a 35% stake in Bright Energy, a joint venture formed in 2019 with a unit under Myanmar conglomerate Kanbawza Group. Bright Energy had been constructing an oil storage terminal near Yangon, which was expected to be the biggest in Myanmar.
According to a statement last week, PTTOR “has expressly declared our intention to suspend BE’s operations and construction and payments.”
The move comes after Norway’s Government Pension Fund Global removed both PTTOR and the parent PTT from its portfolio, which was announced on December 15. The Norway fund is one of the world’s largest sovereign wealth funds.
It remains to be seen if PTT’s downscaling will extend to the remaining natural gas operations in Myanmar. Group company PTT Exploration and Production (PTTEP) controls interests in multiple gas fields in Myanmar and exports the product to Thailand.
Myanmar’s natural gas accounts for about 15% of Thailand’s gas consumption.
When France’s TotalEnergies withdrew from Myanmar’s Yadana gas field in March, PTTEP announced it would take over part of the stake, adding that “long-term energy security” factored into the decision.
However, PTTEP said in April that it would withdraw from Myanmar’s Yetagun gas project. (NNT)
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