The Hindu Business Line : Decision on gas from Myanmar by May

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New Delhi Jan. 19 Myanmar on Friday said a decision on whether it will export gas to India from two offshore gas blocks would be taken by May. Mr U. Soe Myint, Director General Planning Division, Ministry of Energy Government of Myanmar, said, "We will decide on exporting gas to India by May, after the reserves in the offshore areas are certified."

Speaking to newspersons after his meeting with the Petroleum Minister, Mr Murli Deora, at the Petrotech-2007, he said ``The current estimate of gas reserves would not support export of gas to India either through a pipeline or in the form of liquefied natural gas." This may put on hold the country's plans for proposed gas pipeline from Myanmar through the North Eastern region to India.

"We expect the drilling campaign in the A-3 block to be completed by May. Depending on the size of the gas find, we will decide on whether to sell it as LNG or through a pipeline or consume it locally," Mr Soe Myint added.

The state-owned GAIL (India) Ltd and ONGC Videsh Ltd together hold a 30 per cent stake in the A-1 and A-3 blocks in Myanmar. Though evaluation of gas reserves in the A-1 block is complete, production will commence together at the two blocks, he said.

As per estimates by independent certifiers, the offshore block A-1 has 4.8 trillion cubic feet of gas reserves, while in the adjacent block A-3, the reserves would be established after the current appraisal drilling is completed. Myanmar believes the blocks together hold an in-place reserve of 20 trillion cubic feet and can produce 2 billion cubic feet of gas for 25 years. ``We need a third party certification of reserves to establish our belief,'' he said.

Myanmar has recently invited bids for selling gas from the two blocks, with India, Thailand and South Korea bidding for buying gas. The bids were invited without any commitment to export, he said, adding that ``we will sell to whoever offers the highest price."

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