New Delhi recently approved Indian oil majors Oil and Natural Gas Corporation’s Overseas arm (OVL) and GAIL India to invest an additional US$$167.84 million and US$83.88 million in gas field development projects in Myanmar. The fresh investment will increase OVL’s total investment in the pipelines to more than US$1 billion and give it a 8.35 percent stake. GAIL India will up its stake to 4.17 percent with the new capital infusion.
Developed by China National Petroleum Corporation (CNPC) in Myanmar, the US$2.01 billion project will develop gas field’s and build pipelines A-1 and A-3 which will ship gas to Southwest China’s Yunnan province.
The block is operated by South Korea’s Daewoo, which holds 51 percent. Daewoo, OVL, GAIL and Korea Gas, which has the 8.5 percent, are investing US$2.79 billion in three gas fields in Block A-1 and A-3 off the Myanmar coast and another US$936.26 million in laying a separate under-sea pipeline to take the gas to the shore, NDTV Profit reported.
India’s investment in transporting Myanmar’s gas to China comes just a few weeks after China officially replaced India in the Iran-Pakistan Pipeline project. The 2,775 km pipeline project conceived of in 1995, was intended to transport gas from Iran to Pakistan and India however after much dithering, India finally pulled out of the project in 2008 after disagreements with Islamabad on transit fees, paving the way for China. India is predicted to require 146 billion cubic meters (bcm) of gas per annum by 2025, up from 33 bcm per annum in 2005.