Fourteen human rights groups have called on the EU to impose sanctions on European companies operating in Myanmar's oil and gas sector.
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The military-backed government announced that a delegation led by Thai Energy Minister Akanat Promphan visited Nay Pyi Taw on October 19 to discuss further investment by Thai companies in natural gas and hydroelectric projects in Myanmar and cooperation in energy trade based in the Dawei region.
The Thai Energy Minister met separately with the military-backed President U Min Aung Hlaing to discuss bilateral energy cooperation and cooperation on climate change.
The Thai Energy Minister was accompanied by representatives from Thailand's energy companies, PTT, PTTEP, and the Electricity Generating Authority of Thailand (EGAT), who met separately with the military-backed government's Minister of Electricity and Energy, U Ko Ko Lwin.
During the meeting, they discussed increasing production from existing Myanmar-Thailand joint natural gas projects, further investing in new projects by Thai companies, and fully utilizing natural gas pipelines to Thailand.
In addition, they discussed the possibility of Myanmar, Thailand, and Russia collaborating to conduct energy trade activities based in the Dawei region and the participation of Thai companies in developing hydropower projects in the Salween and Tanintharyi River basins.
The military-backed government also discussed the possibility of Thai companies investing in electricity transmission and distribution projects, including cross-border power transmission projects, and the signing of a memorandum of understanding (MoU) to enhance cooperation in the energy sector between the two countries, according to a statement from the military-backed government.
However, the statement did not specify whether agreements have been reached to invest in new projects or how much the investment will be.
A Thailand-based political analyst told RFA that security of energy pipelines and infrastructure, payment difficulties amid Western sanctions and ongoing conflicts in Myanmar could pose challenges for Thailand, and it is uncertain whether the energy generated by the projects will be able to meet Myanmar’s domestic needs.
He said investments by Thai companies could bring economic and political benefits to the military-backed government.
“The increased investment by Thai companies since the coup has brought significant economic and political benefits to the military council. This has been highlighted by international monitoring groups and UN reports. The offshore blocks have long generated annual foreign income in the form of royalties. Thai banks and companies have become a gateway for the military council to the global financial system. With this money, the military council has purchased weapons and military equipment. In this way, it has been able to circumvent international sanctions and make payments.”
Ko Bong, the information officer for the Dawei District Democracy Movement Strike Committee, told RFA that energy and infrastructure projects in Tanintharyi Region are having an impact on local residents.
“The impact on the locals is huge. The military is also carrying out land clearance operations for the Dawei deep-sea port project, and locals are fleeing. Any more projects in Tanintharyi will only cause more trouble for the locals. While these projects will bring billions of dollars in benefits to the military regime, they will do more harm than good to the locals. In normal times, there would be benefits for the locals, but during this military coup, there will be no benefits.”
On October 20, 14 European-based Myanmar and human rights organizations issued a joint statement calling on the European Union (EU) to impose sanctions on European companies operating in Myanmar's oil and gas sector.
The announcement stated that European company SED Energy, which has signed a contract with Thai energy company PTTEP, is working on the Zawtika natural gas project in Myanmar.
It also calls for increased sanctions on businesses that generate revenue for the military and enable the purchase of weapons and military equipment.
Following the 2021 military coup, Malaysian-based Petronas, French-based Total Energies, and US-based Chevron withdrew from Myanmar's offshore oil and gas projects.
Then, PTTEP and Myanmar Oil and Gas Enterprise (MOGE) increased their joint ownership in the Yadana natural gas project.
Currently, in addition to the Yadana and Zawtika natural gas projects operated by PTTEP, natural gas from the Yetagun project operated by the Thai private company Gulf Petroleum Myanmar (GPM) is being exported to Thailand.
Revolutionary forces and civil society organizations opposing the military coup, including the National Unity Government (NUG), have consistently called for the military to stop engaging in economic cooperation with the military-appointed government and to cut off the military's sources of income.