A sea route to northeast in the making
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China edges India out of Myanmar natural gas prospects
September 8, 2007: (Daily India) Agartala, China has edged out India in importing natural gas from Myanmar offshore fields, where Indian state-run firms have a 30 per cent stake."The Myanmar Government has already decided to sell gas to China. They (Mayanmar Government) have given China a commitment to sell this gas," said A K Hazarika, Director (Onshore) Oil and Natural Gas Corporation (ONGC).
India's ONGC Videsh Limited has 20 per cent stake each in the two
blocks, while the Gas Authority of India Limited (GAIL) held 10 per cent
apiece.
GAIL was acknowledged as a preferential buyer and
transporter of Myanmar Shwe Gas, and a Memorandum of Understanding (MoU) to
this effect was signed between the two countries on March 9, 2006.
Under the terms of the MoU, GAIL had reportedly already
completed a detailed feasibility report for an on land pipeline from Myanmar passing through the North East India
after Bangladesh
denied use of its territory for the same.
On August 9, 2006, Myanmar
invited bids from prospective buyers like India,
China and Thailand for
the export of gas.
In October, the Myanmar Government intimated that none of
the bids met its expectations. Subsequently, it invited bids for the sale of
3.5 million tonnes of Liquefied Natural Gas (LNG).
GAIL again submitted its bid, but ultimately China beat India in accessing Myanmar Shwe gas.