Economic Miracle in Myanmar Depends On Natural Gas Bounty

By IVCPOST Staff Reporter

Jun 07, 2013 12:41 AM EDT

Myanmar has an estimated value of US$75 billion fuel abundance. This made 59 global energy companies to line up for the country's fuel bounty including Exxon Mobil Corp., Oil India Ltd., and Woodside Petroleum Ltd. This was according to Myanmar's energy ministry. Oil and gas have been pumped in the country for decades. Unfortunately, with the military ruling the country for almost five decades, fuel investment dried up.

Located between India and China, Myanmar needs more investment to explore the gas potential of the country. A report from McKinsey Global Institute shows that Myanmar needs US$320 billion through 2030 to aid industries such as agriculture and Energy. If pursued, the economy is forecasted to reach 8% of annual growth according to the same report.

The change in Myanmar's form of governance to democracy last year has driven US to ease the sanctions passed last May. Investors were concerned in the government transparency in the country along with ethnic violence that persisted in Myanmar. However, with the transition in government and the abundance in fuel, Myanmar sees a brighter economy approaching head as stated in the three-day World Economic Forum on East Asia hosted by the country.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics