New Delhi: In a major setback for New Delhi's future energy plans, Myanmar has refused to export gas to India. Instead, Yangoon has shown preference to a pipeline to China to export the gas found in its off-shore area.
According to government sources, the Myanmar government told an Indian delegation last week that it wants to sell gas from off-shore block A-1 and potential discoveries in A-3 block to China.
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.
The distance from the gas field to the India-Myanmar border is just 290 km while the Myanmar-China border is over 900 km away, which means it makes more economic sense for Yangoon to do business with it the most economical export option. Yet, Myanmar's military leadership preferred to go with China.
China has promised Myanmar to lay 900-km pipeline to transport the gas from the off-shore area to the border.
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.
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