India, China, S-Korea in race for Myanmar gas

India is pitted against China, South Korea and Thailand in the race to secure a huge gas field found in offshore Myanmar.

While India, China and Thailand had proposed to lay pipelines to their respective countries for transporting gas from the Shwe gas field in Bay of Bengal, South Korea had proposed to liquify it and transport it in form of liquefied natural gas (LNG), industry sources said.

New Delhi has proposed to lay a 1,400-km India-Myanmar pipeline, originating from Sittwe (Akyab) in Myanmar and entering India through Mizoram. It will pass through Aizawl, Dispur and Guwahati in Assam and Shiliguri in West Bengal to join the Jagdishpur-Haldia pipeline at Gaya in Bihar.

China on the other hand proposed to lay a 2,380-km long pipeline originating from Kyaukphyu in Myanmar and terminating at Ruili in China's Yunan province after passing through Pagun Tuywintanuag and Mandalay.

Thailand has proposed a 1,100-km pipeline. Myanmar is looking for a buyer that will pay the maximum price for the gas found in Block A-1 and in the adjacent A-3 block. In both the blocks, India's ONGC Videsh Ltd and GAIL hold a 30 per cent stake.

Sources said the Indian offer was better than the Chinese offer as the length of its pipeline was shorter. For transporting gas to the Indian border, a pipeline of just 250-km length has to be laid in Myanmar. Whereas to do the same for China, will require a 1,000-km line and Thailand will require a 1,100-km pipeline.

Sources said state-run Gail (India) Ltd has completed a Detailed Feasibility Report on the proposed onland Myanmar-India gas pipeline bypassing Bangladesh.

The total project, which also includes 37 km offshore component for transporting the fuel from the gas field in the Bay of Bengal, will require an investment of about $3 billion.

The pipeline will pass from Sitwe along Kaladan river in Myanmar to Mizoram's capital Aizawl. It will then enter Assam from Silchar and cross Guwahati and Tinsukhia before meeting the Haldia pipeline at Gaya.

Commercial production from A-1 block, home to the Shwe field, which alone has been assessed by Houston-based consulting firm Ryder Scott Co to contain 2.88-3.56 trillion cubic feet in place volumes, was expected to commence by 2009.