Shwe Gas Project, Bay of Bengal, Myanmar

Shwe gas project comprises the development of three fields, namely Shwe, Shwe Phyu, and Mya, which are located in the Bay of Bengal, offshore Myanmar.

The project is jointly owned by POSCO DAEWOO Corporation (PDC, 51%), Myanma Oil and Gas Enterprise (15%), ONGC Videsh (India) (17%), GAIL (India) (8.5%), and Korea Gas Corporation (8.5%). It is being developed in three phases with the first phase completed in 2013.

PDC, the project operator, is currently undertaking the second and third phases of development of the gas project. First gas from phase two is expected in the second quarter of 2022.

Shwe gas project location and reserves

The Shwe gas project is located in Blocks A-1 and A-3 in the Bay of Bengal, offshore Rakhine, Myanmar. The water depth in which the fields lie ranges between 85m and 140m.

The three fields are together estimated to hold 4.5 trillion cubic feet of gas.

Shwe gas project phase one development details

The first phase of the Shwe gas project included the development of the Shwe and Mya North gas fields. A central production platform comprising topsides weighing 25,000t and a jacket weighing 20,600t was installed in phase one using the float-over concept.

A total of eight production wells and one condensate well were drilled. The Mya gas field was developed through two subsea drilling centres and four production wells. Produced gas from the field is transported to the platform through a 12.5km-long, 14in-diameter gas pipeline.

The Shwe platform transports the produced gas through a 110km-long, 32in-diameter export pipeline to an onshore gas terminal comprising a jetty and hanger at Kyaukphyu.

Phase two development details

Phase two development of the Shwe gas project includes the drilling of four production wells including a satellite well and a five-slot manifold at the Shwe field. A 2.5km-long, 12in-diameter infield flowline and umbilical will connect the subsea facilities to the existing Shwe platform.

An 8.5km-long, 6in-diameter infield flowline and umbilical will connect the satellite well to the subsea facilities.

At the Shwe Phyu field, four production wells including two satellite wells will be drilled and a six-slot manifold will be installed. A 5.9km and a 2.4km-long, 6in-diameter infield flowline and umbilical will connect the satellite wells to the subsea facilities at Shwe Phyu. A 19.7km-long, 14in-diameter infield flowline and umbilical will connect the subsea facilities at Shwe Phyu to the Shwe platform.

Shwe gas project phase three development details

The third phase of the project will include the installation of a new compression platform, which will be bridge-linked to the existing platform. Modifications to the existing platform will also be carried out as part of the project.

The phase three is currently in front-end engineering design (FEED) stage, which is expected to be completed in the second quarter of 2020.

Contractors involved

McDermott International, Doris Engineering, and Hyundai Heavy Industries were awarded the FEED contracts for phase three development of the project.

A consortium of McDermott International and BHGE were contracted to supply subsea equipment for phase two of the project in July 2018. The scope of the contract includes the supply of subsea umbilicals, risers, flowlines, and subsea production systems comprising Xmas trees, production control systems, and topside controls.

The consortium will also perform brownfield modifications to connect the new subsea facilities to the Shwe platform. McDermott’s Derrick Lay Vessel 2000 will be used to carry out the installation activities. The consortium also carried out the FEED for the project.

Daewoo International, a subsidiary of POSCO, was responsible for the engineering, procurement, installation, and construction of the platform.

Doris Group carried out the FEED for the first phase of the project covering the production platform, onshore plant, and subsea infrastructure.

HSL carried out the installation of the offshore platform and submarine pipelines for phase one of the project. The company was also responsible for the construction of the onshore gas terminal and jetty.

KCA Deutag, JDR Cable Systems, Dietswell Solutions, and Trelleborg are some of the other contractors involved in the project.