Who is Supplying Myanmar Junta with Aviation Fuel?

By The Irrawaddy 14 October 2022

Puma Power, the principle provider of aviation gasoline in Myanmar, introduced on October 5 that it had offered its operations within the nation to a domestically owned firm.

The midstream and retail arm of Switzerland’s Trafigura mentioned in an announcement it had signed a deal to promote its stake in Puma Power Asia Solar (PEAS) and its minority share in Nationwide Power Puma Aviation Providers (NEPAS) to a domestically owned personal firm, with out naming the client.

Puma Power is assumed to have offered its stakes to its companion, Asian Solar Power (ASE). The 2 corporations established PEAS in 2014 to import and provide aviation gasoline in Myanmar. The three way partnership constructed Myanmar’s largest gasoline storage terminal, with a capability of 91,000m³, at Thilawa Port in Yangon. The US$100-million port opened in 2017.

Puma had owned 80 % of the three way partnership, with the ASE holding the remaining 20 %.

ASE has been blacklisted by the parallel Nationwide Unity Authorities for supplying aviation gasoline for junta plane which the regime makes use of to hold out air raids on civilians.

Following the navy coup in February 2021, Puma initially suspended operations in Myanmar however later resumed distribution for civilian functions.

“It has now offered its stake to exit Myanmar. It seems that it will probably solely promote its stakes to ASE as a result of it might want ASE’s approval to promote its stakes to a 3rd firm,” a supply from a Yangon-based gasoline firm advised The Irrawaddy.

Whereas telecom corporations which have pulled out of Myanmar are completely foreign-owned, PEAS is a three way partnership between a overseas agency and a neighborhood firm, and it’s due to this fact probably that Puma has offered its stakes to its companion, he added.

The Irrawaddy was unable to succeed in ASE for remark.

ASE was established in 2013 by businessman U Win Kyaw Kyaw Aung, who returned to Myanmar after finding out overseas when U Thein Sein’s quasi-civilian authorities was inviting overseas funding. The corporate engages in logistics and gasoline importation and distribution.

Its two different administrators are Daw Kyu Kyu Myint and Daw Tharaphi Hla Myo.

U Win Kyaw Kyaw Aung lived primarily in Singapore earlier than he returned to Myanmar. Lower than one yr after his return, he managed to companion with a world vitality agency, Puma, whereas additionally acquiring a 50-year lease from the state-owned Myanmar Port Authority for the land to construct the gasoline storage terminal at Thilawa Port.

U Win Kyaw Kyaw Aung reportedly has shut ties with regime crony and Ayeyar Hinthar co-owner U Zaw Win Shein and others who’ve gained tenders from the Myanmar navy’s Directorate of Procurement, a businessman with data of the matter advised The Irrawaddy on situation of anonymity.

“When it entered the Myanmar market, Puma selected him for concern that it’d find yourself partnering with sanctioned corporations. However [ASE] is near the navy. Right now, generals don’t spend money on companies run by cronies. They do any enterprise they like by hiring frontmen,” mentioned the businessman.

The truth that U Win Kyaw Kyaw, 38, has a low profile in enterprise circles additionally makes him an excellent frontman for the generals.

In 2017, a Singapore courtroom discovered U Win Kyaw Kyaw Aung, then 33, a Myanmar nationwide with everlasting residency in Singapore, responsible of hiring hitmen to kill a person suspected of adultery along with his spouse in 2015. The suspect fled earlier than it could possibly be ascertained whether or not he was the identical man who had established ASE.

ASE has additionally acquired Puma’s minority share in NEPAS, sources advised The Irrawaddy. NEPAS is a three way partnership between Puma Power and the state-owned Myanmar Petroleum Merchandise Enterprise beneath the junta’s Ministry of Power. It provides aviation gasoline in addition to bitumen to 10 home airports together with Yangon Worldwide Airport.

Nevertheless, one supply claimed that Puma’s stake in NEPAS has been acquired by 24 Petroleum. A subsidiary of 24 Hour Group, 24 Petroleum, was established in early 2021 earlier than the coup to produce Jet A-1 gasoline in addition to gasoline and diesel.

Owned by U Aung Aung Zaw, 24 Hour Group purchased Air KBZ and Myanmar Airways Worldwide from Kanbawza Group in late 2018.

“Worldwide airways don’t refuel right here. The home aviation gasoline market solely provides the navy and home airways, so solely corporations near navy will purchase the stakes,” mentioned the supply, a businessman with data of the matter.

The Irrawaddy couldn’t get hold of remark from managing administrators of the Myanmar Petroleum Product Enterprise (MPPE) and Myanmar Petrochemical Enterprise beneath the Power Ministry to verify the acquisition.

In August, Myanmar’s junta reconstituted a nationwide coordination committee with the acknowledged goal of importing, storing and distributing aviation gasoline in keeping with worldwide norms.

The 15-member committee consists of directors-general from the ministries of Power, Transport and Communications, and Planning and Funds, the assistant quarter-master normal, and chiefs of the flag service Myanmar Nationwide Airways and personal airways together with Air Thanlwin, Myanmar Airways Worldwide, Yangon Aerodrome Co, and Golden Myanmar Airline.