Myanmar pipelines to India and China

Pipelineasia.com: 15 May 2006

Myanmar has indicated that it has enough gas to fill pipelines to both India and China, while the route through Bangladesh is looking less likely. "There is enough gas there. We can sell it to both India and China," said Myanmar ambassador to India U Kyi Thein.

The in-place reserves from the Block A-1 in the Shwe field have been assessed by American based consulting firm Ryder Scott at 2.88 Tcf to 3.56 Tcf.

"Talks are on with both the countries. We are still in the negotiation stage and have not finalised with either India or China," Mr Thein said. "Surely, we will sell gas to India," he said. "The gas would come to India through a land route bypassing Bangladesh and linking the Kaladan river in Myanmar directly to Mizoram."

Last week, Gas Authority of India Limited presented the detailed feasibility report prepared regarding transport options of gas from Myanmar to the other operators of Block A-1, concluding that a route bypassing Bangadesh was preferred.

The move comes in the context of Myanmar's deal with China over its abundant gas supplies. Myanmar said it signed the pact with PetroChina because no progress had been achieved in the tripartite agreement between Myanmar, Bangladesh and India for the proposed pipeline project, whereas the Chinese had assured that they would lay their pipeline on time.

Meanwhile a spokesperson from the Bangladesh Ministry of Energy noted that they remain hopeful but would not drop the conditions it initially wanted attached to a Memorandum of Understanding, which included resolving issues related to the reduction of trade imbalance between India and Bangladesh, providing an 18 km corridor for Nepalese goods to obtain access to Bangladeshi ports and access to hydro-electric potential in Bhutan.

"We have nothing to do if India or Myanmar does not invite us to join the pipeline," said a high-level official of the Bangladesh ministry of energy, according to a report in the Daily Star newspaper. "We have intentions to join the pipeline but India should consider the trade deficit between the two countries and other bilateral issues."

An Indian government spokesperson said that the issue of gas pricing would now be discussed with Myanmar but that it is dependent on the completion of the Myanmar government's own feasibility, which is scheduled for completion by the last week of June. Commercial production from the field is expected to commence by 2009.