Dhaka sparks hope for Myanmar-India gas

"We are ready to negotiate for allowing the pipeline if Myanmar sells gas and India agrees to buy. ... We'll obtain best possible advantage through negotiations -- we'll get revenue," Foreign Affairs Adviser Iftekhar Ahmed Chowdhury said upon returning to Dhaka after a trip to Myanmar, formerly known as Burma. The comments were reported by the Daily Star newspaper.

Bangladesh was to receive $100 million to $120 million as transmission charge per year for the approximately 600-mile pipeline from Myanmar to India. The former Bangladesh government set several conditions for the deal that were unpopular in India and so the pipeline stalled. A route bypassing Bangladesh was proposed but was deemed too circuitous.

Later, Myanmar signed a memorandum of understanding with China to sell gas to Asia's No. 1 energy consumer. But the pipeline to India was revived when it was discussed at a recent meeting in New Delhi, the newspaper said.

The gas in question is from Myanmar's A-1 block and potential discoveries in the A-3 block. India's ONGC Videsh Ltd. and the Gas Authority of India Ltd. together have a 30-percent stake in the blocks, and South Korea's Daewoo, which operates the block, has a 60-percent stake. South Korea's KoGas owns the rest.

India, the world's No. 6 energy consumer, desperately needs energy to fuel its growing economy. Its energy consumption is expected to grow by 40 percent over the next five years and push it to No. 4 among consuming nations by 2010. Government figures show that the country's domestic gas supply is 65 million standard cubic meters per day while demand is 231 mmscmd. This figure is expected to rise to 313 mmscmd by 2011-12.

Myanmar's gas reserves are limited -- 283.2 billion cu m in proven reserves as per 2005 estimates -- but it has other benefits for India. They share a border and so the cost of a pipeline would be less.

Sources:EARTHTIMES