Myanmar may decide by the month's end if it will export natural gas to India or China after a consultant of Genesis Oil and Gas Consultants of UK makes a presentation on monetising reserves found in block A-1. | |
| "Genesis, appointed by block operator Daewoo International of South Korea, will make a presentation in London on June 27 and 28 on options for developing block A-1, in which Indian firms ONGC Videsh Ltd and GAIL (India) Ltd together hold 30 per cent interest," an industry official said. |
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| Daewoo had earlier indicated it would announce a decision on which projects to pursue after reserves are certified by mid-2006, following the latest drilling campaign and once it had filed a declaration of commerciality. |
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| Pipeline exports to China or India are likely to be the most favoured option to exploit block A-1 gas discoveries of Myanmar. |
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| "A number of possible development options remain under consideration, including a liquefied natural gas project with exports to South Korea," he said. |
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| Daewoo had earlier indicated it would announce a decision on which projects to pursue after reserves are certified by mid-2006, following the latest drilling campaign and once it had filed a declaration of commerciality. |
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| Reserves at the SHWE (gold) field, one of several giant structures on A-1, have been independently certified at between 2.88 trillion and 3.56 trillion cubic feet of gas by Houston-based consultant Ryder Scott company. |
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| The official said while GAIL had already completed a detailed feasibility report for a $3 billion-on-land, Myanmar-India gas pipeline through Bangladesh, preliminary studies had also been done for a pipeline to China. |
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| The official said GAIL believed compressed natural gas (CNG) would offer the cheapest development and therefore intended to select a long-term charter of CNG barge or ship for transportation to India's east coast. |
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| GAIL had previously stated that given the prospective size of the gas reserves and distance from India's east coast, approximately 600 km, the option for transporting the gas in the form of CNG, by ship or barge, appeared a more attractive option, compared to others, in terms of capital investment and shipping cost or pipeline transmission tariffs. |
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| Later GAIL appointed Belgian contractor Tractebel for a technical study of the proposed Myanmar-to-India gas pipeline project. |
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| "If the new pipeline is established, then gas fields of Assam and Tripura could also feed in it," the official added. |
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