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Myanmar ditches India for China in gas deal
April 9, 2007: New Delhi, India has lost the match to China for getting natural gas from Myanmar.
Despite India's efforts at pampering the ruling junta
with increased military aid, Yangon has chosen Beijing
over New Delhi
for selling the gas to come out of the two undersea fields where two Indian
state-owned firms together hold 30% equity.
According to official reports from Yangon, a March 14 MoU with Beijing
says "the entire natural gas" from A-1 and A-3 blocks in the Rakhine
offshore area will be sold to China.
It will be wheeled through a 2,380-km pipeline connecting Myanmar's Kyakphyu in the Bay of Bengal to Rili
in China's
Yunan.
In return, China will pay
Yangon an annual transit fee of $150 million for 30 years for the pipeline's
990-km stretch in Myanmar.
The MoU was signed during the visit of a Chinese delegation led by PetroChina
president Wang Lihua.
The MoU seals the fate of efforts by flagship overseas explorer ONGC Videsh and gas utility Gail - which hold 20% and 10% respectively in the blocks - to bring even their share of Myanmar gas to India.
The reaction of South Korea's Daewoo, which is in charge of operations in the two blocks and the main suitor for gas, will be interesting to watch.
Sources: THE TIMES OF INDIA