China National Petroleum Corporation (CNPC), a major oil and gas company in China, is planning to open several petrol stations in Myanmar. CNPC will be the first major foreign investor to penetrate into Myanmar’s fuel market, Reuters reported.
Its first fuel station in Myanmar bears a bright red logo of Singapore Petroleum Company (SPC) that CNPC acquired in 2009. An official said, “The SPC logo is used as it’s one of the top brands in Southeast Asia.” CNPC is planning the establishment of ‘several dozen’ petrol stations in Yangon, Mandalay, and capital Naypyidaw.
The first petrol station under the SPC brand will be SPC’s first venture outside of Singapore. Reuters said that the station was opened in downtown Yangon in March. It is a joint venture with privately owned leading corporation Shwe Taung. The new venture also has a storage facility installed.
The petrol stations’ investments could easily go up to tens of millions of dollars.
CNPC identifies Myanmar as a prime market for fuel retailing with great scope for foreign investors. However, for now the foreign investor participation is only minimal.
A Beijing-based PetroChina executive, said, “Myanmar is one of the few markets in this region that’s open to outside investment and where demand is growing fast.” The Asian Development Bank forecast said that Myanmar is the fastest growing economy in Southeast Asia with 6.8 percent growth predicted next year.
SPC produces 290,000 barrels-per-day refinery in Singapore, which is equivalent to one million tonnes of fuel a year to Myanmar.