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India still hopeful of getting gas from Myanmar

Special Correspondent

Deal not been signed and sealed, we are still in discussion: secretary


  • Committee has asked Government to pursue the matter
  • GAIL has proposed a pipeline from Myanmar

    NEW DELHI: Notwithstanding the decision of Myanmar to sell natural gas found in its offshore area to China, India has not given up hope with officials asserting that the last word had not been said on the issue and intensive discussions were going between the Myanmar Government and Indian authorities to clinch the deal in favour of India.

    "We are approaching the Myanmar Government along with Gas Authority of India Limited (GAIL), ONGC Videsh Limited and another major operator Daewoo that holds 60 per cent share in this particular A-1 block. Out expectation is that the last word had not been said. The agreement has not been signed and sealed, so we are still in discussion," Secretary, Petroleum and Natural Gas, M.S. Srinivasan has informed the Parliamentary Standing Committee on Petroleum and Natural Gas.

    In its report presented to Parliament, the Committee has asked the Government to vigorously pursue the matter with the Myanmar Government so as to get a favourable result.

    India's ONGC Videsh Ltd and GAIL have 30 per cent stake in A-1 and A-3 blocks, where South Korea's Daewoo is the main operator with 60 per cent interest. The remaining 10 per cent is with KoGas of South Korea. India has been seeking import of natural gas from Myanmar, Iran and Turkmenistan to supplement falling domestic production that barely meets half the current demand.

    GAIL had proposed a 1,573-km pipeline from Myanmar through Mizoram and Assam to West Bengal and to Gaya in Bihar to transport gas from A-1 and A-3. China and Thailand had submitted competing pipeline proposals.

    Myanmar at that time had said the volumes in A-1 were not sufficient to support a pipeline and called for bids for selling the gas in its liquefied form.

    GAIL bid five dollars per million British thermal unit for 3.5 million tonnes of LNG that was lower than Marubeni of Japan and KoGas.

    On the other hand, the Indian Government has conveyed the decision ADB to join the proposed Turkmenistan-Afghanistan-Pakistan gas pipeline project as an official member.

    The Daulatabad area of Turkmenistan is reported to have abundant gas reserves. The Governments of Turkmenistan, Afghanistan and Pakistan proposed the trans-national gas pipeline to exploit the available gas reserves and designated ADB as the lead development partner.

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