Myanmar refuses to export gas to India; opts for China

Last Updated: Wednesday, March 21, 2007, 00:00

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Myanmar refuses to export gas to India; opts for China

New Delhi, March 21: Myanmar has refused to export gas to India and has instead preferred a pipeline to China to export the gas found in its off-shore area.

Myanmar last week told an Indian delegation that it wants to sell gas from off-shore block A-1 and potential discoveries in A-3 block to China, highly placed sources said.

India's ONGC Videsh Limited and GAIL have 30 per cent stake in A-1 and A-3 blocks, while South Korea's Daewoo is the operator with 60 per cent stake.

South Korea's Kogas has the remaining 10 per cent interest.

China has told Myanmar that it will lay about 900 km pipeline in Myanmar to transport the gas from the off-shore area to Myanmar-China border.

The distance from the gas field to India-Myanmar border is just 290 kms, making it the most economical export option but Myanmar's military leadership preferred to go with China.

Around 18 million standard cubic metres per day is likely to be produced from block A-1, while volumes from A-3 block have not yet been finalised pending an appraisal of the discovery.

Myanmar would use around about 6 million standard cubic metres of gas per day of the volumes from A-1 and A-3 for its domestic consumption and export the remaining 12 million standard cubic metres of gas from A-1 and likely output from A-3 to China.

Independent certifiers have certified 4.8 trillion cubic feet gas reserves in offshore block A-1 while in the adjacent block A-3 the reserves would be established after the current appraisal drilling is completed in May.

Bureau Report

First Published: Wednesday, March 21, 2007, 00:00