GAIL's project with Myanmar in trouble

State-run Gas Authority of India Ltd (Gail) Wednesday said its project with Myanmar to source 3.5 million tonnes of liquefied natural gas (LNG) per annum has run into problems.

'We have run into some problems with our Myanmar project, but we are still working on reviving it,' U.D. Choubey, chairman and managing director, GAIL, told IANS.

Last year, GAIL had bid for sourcing LNG as well as natural gas from Myanmar via a 1,573-km pipeline to India through the northeast.

The company, which announced its financial results Wednesday, for fiscal 2006-07, registered a turnover of Rs.160.47 billion, a growth of 11 percent over 2005-06.

It also recorded a net profit of Rs.238.67 billion in 2006-07 from Rs.231 billion in 2005-06.

The firm during the financial year 2006-07 had signed a memorandum of understanding (MoU) with the Mukesh Ambani-promoted Reliance Industries Ltd (RIL) for cooperation in the gas sector. This included transportation of natural gas from the various gas sources of Reliance in the Krishna Godavari basin through an integrated pipeline network.

'We are having good progress with RIL in transporting natural gas from the Krishna Godavari basin,' said Choubey.

GAIL said it plans to borrow Rs.25 billion by the end of this year in instalments over the next two years for its expansion projects, according to R.K. Goel, director of finance, GAIL.

The company plans to invest Rs.180 billion within the current financial year to create new infrastructure, officials said.

During 2006-07, GAIL also entered into an agreement with ONGC for transportation of gas from ONGC fields on the eastern coast of India.

Sources: INDIA PRWIRE