Burmese Junta to sign gas deal with India soon

March 8, 2006 - Narinjara

Burmese Military Junta is expected to sign an agreement with India this week to supply its natural gas to India, according to Indian Foreign Secretary.

Indian President A.P.J. Abdul Kalam during his three-day visit, which started on Tuesday, is likely to finalize the deal with Burma.

What we are looking at is an agreement between the two sides for the evacuation of natural gas which would be produced in these exploration blocks, Foreign Secretary Shyam Saran told in a news conference.

Foreign Secretary of India did not give details about the agreement to be signed in Rangoon but New Delhi was looking at a Burma-Bangladesh-India gas pipeline among other possible schemes.

The secretary also raised the option of converting natural gas of Burma into Liquefied Natural Gas and shipping it to India from Burma Arakan coast that faces India eastern seaboard. This might be another cost-effective option and a third option was a pipeline connecting Burma to India northeast territory.

Oil and Natural Gas Corporation (ONGC) Videsh the state-run gas firm of India and GAIL India hold stakes in projects involved in exploring for natural gas in Burma.

India energy-hungry economy grew at 7.6 percent in the fiscal quarter ending in December, produces barely half the gas it needs and is also planning gas pipelines with Iran and Turkmenistan.

The Junta has been continuing gas exploration particularly blocks at Arakan coast without any consensus opinion from its citizens.