Myanma Petroleum Products Enterprise has established a joint venture with Singapore-based Puma Energy Group to distribute jet fuel, state-run Myanma Alinn said on September 26.
State-owned MPPE and Puma Energy signed the joint venture agreement in Nay Pyi Taw on September 25 after the company was chosen from a short list of four firms last year, the daily said.
The move comes amid increased demand for jet fuel at Yangon, Mandalay and Nay Pyi Taw airports following a big rise in business traveller and tourist arrivals since the change of government in 2011.
The joint venture provides for the establishment of the National Energy Puma Aviation Services Co., Ltd.
MPPE will invest $US26 million in machinery and equipment while Puma Energy will invest $51 million in the joint venture, Myanma Alinn said.
MPPE is the country’s sole distributor of jet fuel, providing 29 million gallons at 11 airports each year.
Government figures show that the cost of jet fuel imports has risen from $1.92 billion in 2010-2011 to $2.44 billion in the fiscal year to the end of last March, the report said.
Information on Puma Energy Group’s website says its turnover in 2014 was $13.4 billion. The company operates in more than 40 countries and distributes jet fuel at 47 airports throughout the world.