Myanmar Courts Foreign Cash to Tackle Energy Crisis

[geovalin]

The Irrawaddy

 

Myanmar’s junta is ramping up efforts to attract foreign investment into its troubled energy sector, as nationwide power shortages and surging fuel prices stir growing public frustration.

 

At a high-level meeting in Naypyitaw on Wednesday, Electricity and Energy Development Commission chair Tin Aung San called for streamlined access to land for energy projects and fewer bureaucratic barriers. Top junta ministers and regional leaders attended the event, underscoring the regime’s urgency.

 

Despite sitting on vast natural resources, Myanmar faces crippling energy shortages. Since the 2021 coup, Western sanctions and economic decline have led to capital flight and a foreign currency crunch—making it increasingly difficult to import essential fuels like petrol and aviation fuel.

 

To plug the gap, the junta is reaching out to foreign partners. It is already collaborating with China on wind and hydro projects, with Russia on a small-scale nuclear plant, and with India on a high-voltage power line linking the two countries. In July, Naypyitaw and New Delhi signed a feasibility deal for the cross-border line, while Tin Aung San travelled to China’s Yunnan Province in June to drum up support.

 

Meanwhile, Myanmar continues to export natural gas—one of its few reliable revenue streams—and in May approved a multibillion-dollar offshore exploration project with Thai-owned Gulf Petroleum. Officials have also sought fresh investment from the United Arab Emirates.

 

But Western pressure remains a key obstacle. US sanctions targeting state-run banks and the Myanma Oil and Gas Enterprise have severely limited the regime’s access to international finance. Junta leader Min Aung Hlaing recently used a speech responding to Donald Trump’s proposed tariffs to again call for sanctions relief.

 

Still, foreign energy investment is rising. According to the Myanmar Investment Commission, the sector accounted for 28 percent of all foreign investment this year.

 

At home, the regime is urging citizens to conserve power, turn to solar panels and switch to electric vehicles—including e-bikes—as imports of fuel remain limited. Efforts to revive domestic refining are also underway.

 

While the junta pushes for long-term solutions, the country’s 55 million people remain stuck with daily blackouts and soaring energy costs—problems no foreign investor can solve overnight.

 

-2025-07-25