Government sold gas to factories at a loss

Government sold gas to factories at a loss - Deputy Minister

Published on Friday, 16 August 2013 17:26

 

Ministry of Energy has lost more than US$300 million distributing natural gas to state owned factories between June 2012 and June 2013, according to Aung Htoo, Deputy Minister of Energy.

The ministry bought natural gas from Total EP Myanmar Co. Ltd. and sold the gas to state owned factories. The difference between buying and selling price was over US$150 million. And the ministry didn't collect pipeline tariff fee worth of over US$170 million either.

"We sold the gas with 20 inches pipeline and the average loss is about US$7 for 1 MMBTU. The average loss will be around US$6 if we sell with 24 inches pipeline," the deputy minister said.

The ministry will continue to sell US$5 per MMBTU of natural gas to government organisations, the deputy minister said in parliament on Wednesday.

Source: http://www.news.myanmaronlinecentre.com/2013/08/17/government-sold-gas-to-factories-at-a-loss/