Myanmar decision on gas export
The Zoland Times
NEW DELH: Myanmar may decide by the month end if it will export
natural gas to India or China after a consultant, Genesis Oil and Gas Consultants of UK, makes a presentation on monetising
reserves found in Block A-1, reports Zoland News Network . Genesis, appointed by block operator Daewoo International of South Korea, will make a presentation in London on June 27-28 on the options for developing Block A-1, where Indian firms ONGC Videsh Ltd and GAIL (India) Ltd together hold 30 per cent interest, an industry
official said.
Pipeline exports to China or India are likely to be the most favoured option to exploit Block A-1 gas discoveries off Myanmar.
"A number of possible development options remain under consideration, including a liquefied natural gas project with exports likely destined for South Korea (Daewoo and compatriot Kogas have 70 per cent equity in A-1) and/or pipeline exports to countries such as Thailand, China and India," he said.
Daewoo had earlier indicated that it would announce its decision on which projects to pursue after reserves are certified by mid-2006 following the latest drilling campaign and once it had filed a declaration of commerciality. Reserves at the Shwe (gold) field, one of several giant structures on A-1, have been independently certified at between 2.88 trillion and 3.56 trillion cubic feet of gas by Houston-based consultant
Ryder Scott Company.
The official said while GAIL has already completed a Detailed Feasibility Report for a 3-billion dollar onland Myanmar-India gas pipeline bypassing Bangladesh, preliminary studies have also been done for a pipeline to China.
As per the GAIL DFR, the 1,400-km long pipeline would originate at Sitwe in Myanmar and pass through the north-eastern states of Mizoram and Asom besides West Bengal to join the Jagdishpur-Haldia pipeline at Gaya in Bihar.
The total project, which also includes 37 km of offshore component for transporting gas from Bay of Bengal to onland, would require an investment of about three billion dollars, the official said.
The pipeline would pass from Sitwe along Kaladan river in Myanmar to Mizoram, capital of Aizawl. It would then enter Asom from Silchar and cross Guwahati and Tinsukhia before meeting the Haldia pipeline at Gaya.
The pipeline is proposed to be laid for transporting gas from A1 and projected volumes from adjacent Block A-3.
The official said the alternate route, which bypasses Bangladesh, was prepared after Dhaka put conditions such as correcting the trade balance with India for allowing passage of the pipeline through its territory.