Mizzima News

Rangoon (Mizzima) - The state-owned Myanma Oil and Gas Enterprise has begun drilling in northern Rangoon, in a strategic move to tap natural gas in inland areas to meet domestic demand, said a source familiar with the Enterprise's work.

The Enterprise is already drilling three exploratory wells, each of which is 4000-feet-deep, in Lay Daung Kan ward in Hlegu Township, about 25 kilometers north of the city.

Another exploration is expected to start soon in a nearby area, known as Sar Talin, the source said, adding that the work was projected to be extended into areas around eastern Dagon Myothit.

“Burma needs a lot more of natural gas to feed its fertilizer plants, gas-powered generators and CNG vehicles,” the source said.

All the areas, in which the Enterprise is exploring, were originally residential and agricultural areas. Also there is the Yangon Institute of Economics, which was recently set up replacing the near historic University of Rangoon in Kamayut Township.

“What will happen to hundreds of acres of arable paddy fields and residential areas is still being assessed,” a Rangoon-based observer said.

The city also has a considerable supply of natural gas from a couple of inland projects in Nyaung Don in Irrawaddy Division, 65 kilometers to the west.