Dawei Power and Utility Co., Ltd. (DPU) and Star Sapphire Co., Ltd. (SSC) signed MOU with Department of Electric Power (DEP) of Ministry of Electric Power, the Government of the Republic of the Union of Myanmar on 11th April 2013. Under MOU, DEP authorized APU and SSC to carry out a Feasibility Study on the development of the 500 MW Combined Cycle Power Plant (CCPP) at Kanbauk, Thanintharyi Region using natural gas from Zawtika gas field. Now DPU has changed the name to Andaman Power and Utility Co., Ltd (APU)
As Zawtika Gas is not sufficient for 500 MW Plant, MOEP prefers 200 MW Gas Engine Power Plant to supply power to Dawei City as short term solution for about two years.
APU signed MOA with DEP on 27th August 2014 to Build, Operate and Transfer the 200 MW Gas Fired Combined Cycle Power Plant at Kanbauk. MOA states that gas supply is available at 15 mmscfd until 2019 it will be 40 mmscfd. The power plant shall be constructed and operated in 2 phases following gas availability.