Why are Shandong’s independent refinery owners flocking to Myanmar?

Why are Shandong’s independent refinery owners so enthusiastic about investing in and constructing refining facilities in Myanmar? According to Pingtouge, a major reason lies in Myanmar’s relatively low production costs, comparatively secure production environment (though Myanmar’s domestic political situation remains unstable, all political parties broadly support foreign investment), and relatively relaxed national policies. Pingtouge learned that Myanmar’s average monthly income stands at only RMB 900; the country’s primary industries are jade, tourism, and limited manufacturing—resulting in a generally low standard of living and, consequently, extremely low facility construction and operational costs. Another factor is the comparatively safe business environment. Pingtouge learned that Myanmar is a multi-ethnic nation. Due to Britain’s historical colonial policy of ‘divide and rule’ and successive post-independence governments’ mishandling of ethnic issues, ethnic minorities have long lacked political rights, their regions remain economically underdeveloped, and inter-ethnic tensions run high. To defend their rights and interests, numerous ethnic minorities have taken up arms and engaged in armed conflict with Myanmar’s central government. After the new government took office in 2011, President Thein Sein recognized the negative impact of ethnic conflicts on political reform and economic development, repeatedly calling for national reconciliation and advancing domestic peace processes. The vast majority of ethnic armed organizations likewise expressed willingness to reconcile with the government. By November 2013, the Myanmar government had reached ceasefire agreements with over ten ethnic armed groups. Recent years’ armed conflicts within Myanmar have largely subsided, creating a comparatively stable security environment—further boosting foreign investors’ confidence. According to domestic independent refinery owners operating in Myanmar, local governments provide military protection for refinery projects: armed soldiers stand guard around the clock to respond to emergencies, ensuring security. Moreover, Myanmar possesses relatively abundant natural resources. According to BP’s Statistical Review of World Energy 2018, Myanmar’s proven natural gas reserves stood at 0.4 trillion cubic meters in 2018—accounting for 0.6% of global reserves. Though modest in share, this still positions Myanmar as a country with notable natural gas resources. In 2019, Myanmar’s natural gas output reached 1.78 billion cubic meters. Myanmar currently lacks large-scale refining facilities. In 2016, the Myanmar Investment Commission announced approval for Chinese enterprises to construct a refinery near the Dawei Special Economic Zone—the first large-scale refinery in Myanmar. This refinery is designed for a crude oil processing capacity of 100,000 barrels per day and includes associated chemical production, port infrastructure, and LPG storage facilities. Reports indicate that products from this Chinese-invested refinery will primarily serve the domestic Myanmar market. As of 2020, however, construction remained incomplete. In December 2018, U Aung Myint, President of Myanmar Oil and Gas Enterprise, announced plans to build a 10-million-ton-per-year diesel-focused petroleum refinery in Thilawa Township, Yangon Region. Feasibility studies are underway to determine which country will partner in developing this project. Additionally, Pingtouge learned that Shandong’s independent refinery owners’ investments in Myanmar consist entirely of small-scale, informal (“earth”) refineries—with minimal investment and annual processing capacities ranging from 3,000 to 20,000 tons.

The People’s Defense Force (PDF) killed a couple openly provoking them—members of the Union Solidarity and Development Party (USDP). The Tanpayakan Refinery Project—a China-Myanmar joint venture with an annual processing capacity of 2 million tons—is temporarily located in Saga Township, Minbu District, Magway Region, just dozens of kilometers from Nat Mountain, the site of intense fighting between the PDF and the Tatmadaw.

A local revolutionary armed force source in East Thayet Township, Magway Region, stated that the couple were supporters of the Tatmadaw and members of the Union Solidarity and Development Party (USDP), who repeatedly publicly provoked the People’s Defense Force (PDF) and erected party signage at their home—prompting the PDF’s targeted double-killing. Not only did they display USDP signage prominently in front of their residence, but they also actively participated in election-related activities—including organizing voting and collecting fees—and openly declared challenges against the PDF. The revolutionary armed forces accused them of coercing villagers to vote, threatening those who refused to vote, embezzling village funds, and overcharging for electricity. The revolutionary armed forces issued a stern warning to other Tatmadaw informants, members of the Shwepyitha People’s Militia, and village heads in the township: the military junta cannot protect them at all times; should they continue assisting the junta or participating in elections, they face imminent attack by revolutionary armed forces. According to reports from Myanmar media citing the Ministry of Energy, on January 20, U Ko Ko Linn, Union Minister for Energy, stated during an inspection of the Thanlyin Refinery in Yangon: “We (Myanmar) are cooperating with Chinese energy organizations to process Middle Eastern crude oil delivered via the China–Myanmar oil and gas pipeline. A 2-million-ton-per-year refinery is currently under construction in Saga Township, Minbu District, Magway Region.” Moreover, Phase II of the Thanlyin Refinery is scheduled for completion and commissioning in 2028, with an expected annual output of 3 million tons. Combined with the Tanpayakan Refinery’s 2-million-ton-per-year capacity, Myanmar’s fuel supply problems will be optimally resolved. Additionally, the refinery will generate substantial carbon dioxide emissions—enabling production of the by-product ‘dry ice,’ which can be exported to earn foreign exchange. This time, Myanmar’s newly invested refinery was not sited in Yangon, because the Yangon River adjacent to Yangon is extremely narrow.

Myanmar's Danlin Refinery Phase 1 Officially Commences Operations

14 hours ago

Myanmar's Danlin Refinery Phase 1 has officially commenced operations with an annual crude processing capacity of 500,000 tons. Phase 2 is scheduled for 2028, aiming to expand capacity to 3 million tons to meet domestic fuel demand.

ccin

2026-10-21

Myanmar's Danlin Refinery Phase 1 Officially Commences Operations

Myanmar's Danlin Refinery Phase 1 Officially Commences Operations

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