India loses out to China on Myanmar natural gas blocks

India’s attempt to woo Myanmar for its natural gas has failed as the Myanmar Oil & Gas Enterprise has asked consortium partners of Blocks A-1 and A-3 to gather in Yangon next week to consider gas sale to PetroChina.

India’s attempt to woo Myanmar for its natural gas has failed as the Myanmar Oil & Gas Enterprise (MOGE) has asked consortium partners of Blocks A-1 and A-3 to gather in Yangon next week to consider gas sale to PetroChina.

On March 16, block partners Daewoo International, ONGC Videsh Ltd, Gail (India) and Korea Gas Corp would be told by MOGE that it has rejected the price offers for A-1 and A-3 gas and that it wants to call for an offer from PetroChina.

“MOGE has made up its mind to give the gas to China. Its message to project partners would be that if PetroChina offers a good price, the gas would go to them,” said an official from one of the Indian companies in the consortium.

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Ten companies, mostly from China, Japan and South Korea had bid for the gas — piped or as LNG — from both blocks. The offer to PetroChina would end GAIL’s dream to bring piped gas through the North-East. China’s scheme is a 2,380-km pipeline to Kunming, the capital of Yunnan Province.

Gail, which holds 30 per cent stake in both blocks along with OVL, has requested the Petroleum Ministry that a senior official be included in the delegation to salvage the gas deal for India.

In January, MOGE had assured an Indian delegation that it would consider exports after reserves were established in adjoining A-3 block by April.

Later that month, External Affairs Minister Pranab Mukherjee requested Myanmar to ensure gas supply on preferential basis to India. New Delhi has assured investment in developing the Sittwe Port and extended a $20-million credit line last year for renovation of Thanlyin Refinery.

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Mukherjee also sided with Yangon on an unsuccessful US attempt to pass a UN censure motion against the military regime. Mukherjee reiterated that democracy and human rights in Myanmar were “an internal matter” of that country.

According to a confidential report, it is China’s opposition to the US move in the UN that has provided the Chinese firms a preferential treatment in award of blocks and gas from the State Peace and Development Council.

China National Petroleum Corp, the parent company of PetroChina, recently secured exploration rights for offshore blocks AD-1, AD-6 and AD-8, taking the Chinese tally to six offshore and five onshore blocks. CNPC, says the report, may also bag offshore AD-2.