GAIL likely to invest Rs700 crore in Mynmar-China gas pipeline
09 Sep 2009
GAIL (India) Ltd, is studying a proposal for investing Rs700 crore in an 890- kilometre long pipeline from a gas field off Myanmar coast to China, B C Tripathi, chairman and managing director of GAIL, said yesterday.
''We have received a proposal from South Korean companies (Daewoo International Corp and Korea Gas ) for joining the project. We are examining the prospects,'' Tripathi told reporters after the company's AGM.
The pipeline may cost $1.5 billion, of which GAIL's investment works out to be about Rs700 crore.
Daewoo International holds 51 per cent operating interest in the two offshore Myanmar blocks - A1 and A3, the gas from which will be sold to China ad India.
Korea Gas Corp (8.5 per cent), GAIL (8.5 per cent) and ONGC Videsh Ltd (17 per cent), and Myanmar Oil & Gas Enterprise (15 per cent) are the other stakeholders.
The in-place reserves from the A-1 block have been assessed by Houston-based consulting firm Ryder Scott at 2.88 trillion cubic feet to 3.56 trillion cubic feet.