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mainly to Thailand

CORRECTED-Myanmar seeks to cut gas exports to Thailand to meet own needs

(Corrects CEO Tevin's company, paragraph 10)

* Myanmar needs gas for domestic demand,jordan, fuel new industry

* PTT says Myanmar can buy excess gas, but no renegotiation

By Aung Hla Tun

YANGON,nike air jordan, Oct 4 (Reuters) - Myanmar wants to renegotiatenatural gas export deals with neighbouring Thailand, a seniorEnergy Ministry official said,nike air jordan, as the country maps out ways totackle crippling domestic power shortages and reassure potentialinvestors.

Myanmar's government is hoping to reach an agreement toretain 200 million cubic feet per day of natural gas from the 1billion cubic feet per day it currently exports to Thailand,which comes mainly from offshore blocks,air jordan, the official added.

"Under the original contract, we are entitled to buy 20-25percent of the gas at the local price for domestic use,air jordan," theministry official told Reuters,nike air jordan, requesting anonymity because hewas not authorised to speak to the media.

Under a military junta that ceded power in March 2011,Myanmar agreed dozens of contracts with energy firms to exportmost of its oil, gas and hydropower output to neighbouring Chinaand Thailand.

The current reform-minded administration has recognised theurgent need to deal with power shortages in a county where 75percent of the population have no regular access to electricity.Experts say constructing new gas-fuelled plants is the fastestway to meet growing demand.

"There was not the demand inside the country in the past, sowe didn't claim that (buy-back) right. But demand is growingspeedily now due to changes in economic policies," the ministryofficial said.

With a foreign investment law expected to be approved byyear-end and most Western sanctions suspended in recognition ofMyanmar's liberalisation, the government is keen to harness itsresources to fuel economic expansion.

But the existing power grid is dilapidated, cities haveregular outages and investors interested in setting up factoriesin Myanmar would face uncertainty because of the limited numberof power plants in operation.

Myanmar supplies about 30 percent of the natural gasThailand consumes,nike air jordan, mostly for power generation. The Myanmargovernment estimates gas reserves to range between 11 trillionand 23 trillion cubic feet.

Thailand imports Burmese gas through its top energy firm,nike air jordan,state-controlled PTT Pcl. Tevin Vongvanich,jordan pas cher, chiefexecutive of its PTT Exploration and Production Pcl unit, said the two countries were working to ensure there weremutual benefits from existing and future deals.

"Thailand and Myanmar are cooperating to meet domesticnatural gas demand for both countries,air jordan femme," he told Reuters onThursday.

"What we produce that is beyond Thailand's needs, we willgive to Myanmar. There has been no change or renegotiation ofany existing contracts."

Tevin could not confirm there was a "buy-back" clause incontracts, as the Myanmar official stated.

According to its Central Statistical Organisation (CSO),Myanmar exported $3.5 billion worth of gas, mainly to Thailand,in the fiscal 2011/12 (April-March), compared with $2.52 billiona year before and $2.38 billion in 2008-2009. (Additional reporting by Amy Sawitta Lefevre and; WilawanPongpitak in Bangkok; Writing by Martin Petty; Editing by AlanRaybould and Miral Fahmy)


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