Govt mulls Myanmar power unit

India is examining the option of setting up a medium size gas-based power plant in Myanmar as an alternative to the proposed pipeline via Bangladesh.

The plant could use ONGC and GAIL's share of natural gas from a block there and the power generated could be supplied to the Northeast.

According to officials, the plan is being discussed within the petroleum ministry though there are doubts on the viability of such a move.

One of the arguments against the proposal is that a medium size project for the Northeast is not viable and it is only because ONGC is losing gas in Tripura that the public sector company has been asked to set up 700 mw project along with the state government.

The power plant option was mooted after it was felt that a pipeline via Bangladesh was not working out, with Dhaka raising bilateral issues with India as a condition for going ahead with the project. The other option of a pipeline from the Northeast bypassing Bangladesh is considered technically and financially unviable.

Alternatives to the Bangladesh option also include getting the gas in compressed or liquified form. Ministry officials hold that while GAIL could move ahead with the CNG option on experimental basis for coastal transportation, the LNG option is very costly.

The alternatives are being examined as it is felt that if India did not take steps to pump out gas from Myanmar, it may lose the potential source to China or Korea.

"Myanmar can have a pipeline connection with China while it has the option of LNG supply to Korea," says an official.

GAIL has already been asked to initiate preliminary works on the onland pipeline project through the northeastern states, which includes route survey, and environmental impact assessment. The petroleum ministry is in favour of pursuing the Northeast option while simultaneously pushing for the option of pipeline through Bangladesh.

ONGC Videsh and GAIL have 20 and 10 per cent interest in A1 block in Myanmar which is currently estimated to produce about 18 million standard cubic metre a day for 20 years.

Bangladesh has laid three conditions to sign an agreement for the pipeline. It wants India to agree to opening up of more transit points, a favourable trade balance and an assurance on India allowing electricity supply to Bangladesh from Bhutan.

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POWER POINTS

Alternative to the proposed pipeline via Bangladesh

Plan mooted after Dhaka raised bilateral issues with India as a condition for going ahead with earlier project

A pipeline from the Northeast bypassing Bangladesh is technically and financially unviable