Shwe

Location and Fields

The project encompasses three offshore gas fields: Shwe, Shwe Phyu, and Mya, situated in blocks A-1 and A-3 of the Bay of Bengal. The water depth in these areas ranges between 85 meters and 140 meters.

Ownership and Consortium

The project is led by POSCO Daewoo International (PDC), which holds a 51% stake. Other consortium members include:

• Oil and Natural Gas Corporation (ONGC) Videsh of India with 17%
• Myanmar Oil and Gas Enterprise (MOGE) with 15%
• Gas Authority of India (GAIL) with 8.5%
• Korean Gas Corporation (KOGAS) with 8.5%.

Project Phases

Phase One

• The first phase, completed in 2013, involved the development of the Shwe and Mya North gas fields.
• It included the installation of a central production platform with a jacket weighing 20,600 tons and topsides weighing 25,000 tons, using the float-over concept.
• Eight production wells and one condensate well were drilled. The Mya gas field was developed through two subsea drilling centers and four production wells.
• Gas is transported through a 12.5 km long, 14-inch diameter infield pipeline to the Shwe platform and then via a 110 km long, 32-inch diameter export pipeline to an onshore gas terminal at Kyaukphyu.

Phase Two

• Currently under development, with first gas expected in the second quarter of 2022.
• This phase includes the installation of subsea umbilical risers and flowlines (SURF) and a subsea production system (SPS) for connecting eight subsea wells to the processing platform.
• At the Shwe field, four production wells, including a satellite well and a five-slot manifold, will be drilled. Similar developments are planned for the Shwe Phyu field.
• McDermott’s Derrick Lay Vessel 2000 is being used for the subsea operations. A consortium of McDermott International and BHGE is contracted to supply subsea equipment and perform brownfield modifications.

Phase Three

• This phase is in the front-end engineering design (FEED) stage, which was expected to be completed by the second quarter of 2020.
• It involves the installation of a new low-pressure (LP) compression platform, which will be bridge-linked to the existing platform. Modifications to the existing platform are also planned.
• DORIS Engineering and Hyundai Heavy Industries (HHI) have been awarded the FEED contract for this phase.

Infrastructure and Operations

• The project includes an offshore platform, submarine pipelines, an onshore gas terminal, and a supply base jetty facility at Kyaukphyu.
• The 40,000-ton offshore platform processes and transports gas to onshore facilities. It features drilling facilities and gas restoring systems.
• The gas pipeline network extends from Kyaukphyu in Arakan State to Kunming and then to Nanning in China, spanning 2,800 km. This network can transport 12 billion cubic meters of gas per year.

Reserves

• The combined natural gas reserves of the three fields are estimated at approximately 4.53 trillion cubic feet, with the Shwe gas field having the largest reserves among the three.

Contractors and Suppliers

• Key contractors include McDermott International, BHGE, DORIS Engineering, and Hyundai Heavy Industries.
• Other suppliers and service providers include JDR Cable Systems, Dietswell, POSH vessels, Trelleborg, and KCA Deutag.

Environmental and Social Impact

• The project has been criticized for its significant environmental and social impacts, including forced relocation, forced labor, and human rights abuses.
• Communities near the project have reported land confiscation, lack of compensation, and environmental damage such as coastal ecosystem disruption, pollution of fishing areas, and destruction of farmland.
• The project has also raised concerns about transparency, accountability, and compliance with international human rights laws and environmental treaties.

Economic Aspects

• The project is estimated to cost around $3.73 billion to develop.
• The gas pipeline contract is expected to run for 20-30 years, with CNPC paying significant transit fees to the Myanmar regime, estimated at up to $4.5 billion over the contract period.

The Shwe Natural Gas Project is a complex and large-scale development that, while providing significant economic benefits, has also raised substantial concerns regarding its environmental and social impacts.