Yadana

Location and Geology

The Yadana gas field is situated approximately 60 kilometres (37 miles) offshore from the nearest landfall in Myanmar, within the Gulf of Martaban. The field lies at a water depth of around 40 metres (130 feet) and the gas reservoirs are located about 1,300 metres (4,300 feet) beneath the seabed.

Reserves and Production

The Yadana gas field contains more than 150 billion cubic meters of natural gas, with estimated recoverable reserves of about 5.8 trillion cubic feet (tcf). The field has an expected life of over 30 years. As of 2009, the output averaged 780 million cubic feet per day (22×10^6 m^3/d).

Infrastructure and Operations

The offshore production complex includes two remote wellhead platforms, one bridge-linked wellhead platform, a production platform, a living quarters platform, and a medium compression platform.

Pipelines

There are two main pipelines associated with the project:

• Yadana Gas Pipeline: This 409-kilometre-long (254 miles) pipeline runs 346 kilometres (215 miles) underwater from the Yadana field to Daminseik at the coast of Myanmar. From there, a 63-kilometre (39 miles) onshore section continues to the Thai border at Pilok. The pipeline has a capacity of 500 million cubic feet per day (14×10^6 m^3/d) and was completed in 1998 at a cost of US$1.2 billion.
• Yangon Pipeline: A 287-kilometre-long (178 miles) pipeline from the Yadana field to Yangon was inaugurated on June 12, 2010. This pipeline has 151 kilometres (94 miles) of offshore and 136 kilometres (85 miles) of onshore sections, with a capacity of 150 million cubic feet per day (4.2×10^6 m^3/d).

Project Partners and Operator

The project is operated by PTTEP International Ltd. as of July 2022, following the withdrawal of TotalEnergies. The current participating interests are:

• PTTEP International Ltd.: 37.0842%
• Unocal Myanmar Offshore Company Limited (a subsidiary of Chevron): 41.1016%
• TotalEnergies' share was allocated proportionately to the remaining partners after their withdrawal.

Previously, the project was operated by TotalEnergies with the following stakes:

• TotalEnergies: 31.2%
• Chevron (through Unocal): 28.3%
• PTT Exploration and Production Public Company Limited (PTTEP): 25.5%
• Myanma Oil and Gas Enterprise (MOGE): 15%.

Economic and Energy Impact

The gas from the Yadana field is used to generate about 8 percent of the electricity in neighboring Thailand and around half of all electricity in Myanmar’s largest city, Yangon. The project is a significant source of revenue for the Myanmar Army and supports a long-term gas supply agreement with Thailand, valued at about $500 million per year.

Controversies and Criticisms

The project has faced intense criticism and opposition due to several factors:

• Human Rights: The project has been associated with human rights abuses, particularly during the construction phase. There have been reports of forced labor and other human rights violations by the Myanmar military.
• Environmental Concerns: The pipeline construction has raised environmental concerns, including the impact on virgin forests in Thailand and the lack of transparency in the environmental impact assessment (EIA) process.

Historical Development

The first discovery at the Yadana field occurred shortly after drilling resumed off Myanmar in the late 1980s. The field was developed under agreements signed in the early 1990s, with production starting in mid-1998. The pipeline project was completed despite significant local and international opposition.