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          NEW DELHI, Jan 11: Myanmar has signed an agreement with PetroChina for sale of gas from its A-1 offshore gas block, where ONGC Videsh Limited (OVL) and GAIL jointly hold a 30% stake, an internet report said.
The other joint venture partners in A-1 block are Daewoo International as the operator with 60% share and Korea Gas (KOGAS) with a 10% share, according to the report.
Sources said the details of this move had been passed on to the Indian authorities by an OVL consultant in Yangon.
"We were informed that PetroChina and Myanmar's energy ministry have signed a memorandum of understanding (MoU) recently under which Myanmar has agreed to sell 6.5 trillion cubic feet of gas from reserves of block A-1 through a overland pipeline to China Kunming) for over 30 years," an official said. Commercial production from this block is expected to commence from 2009.
This move by the Myanmar authorities to do business with China may come as a severe blow to India's ongoing efforts to import gas from Myanmar through transnational pipelines.
India had proposed to build a $1.0-billion, 290-km trunk line from west coast of Myanmar to West Bengal via Bangladesh for importing gas from the A-1 block and also the possible reserves in the adjacent A-3 block.
India has been pursuing gas imports from Iran, Myanmar and Turkmenistan via transnational gas pipelines to meet the growing energy needs as domestic production barely meets half of its requirement.
Meanwhile, Indian Petroleum Minister Mani Shankar Aiyar said in New Delhi China's pact with Myanmar to source gas is not likely to impact India's plans to import the energy fuel from the South Asian country, an IANS report said.
"I don't see why the Chinese agreement with Myanmar for import of gas should affect India. Whatever their agreement, there is no specification on the quantity, price or the location from where the gas is to be supplied," Aiyar said last Thursday in a teleconference from Beijing, where he was on a two-day visit to firm up areas of cooperation.
Aiyar said: "It can hardly be considered a commercial agreement as it does not specify the totality of gas to be imported. We will continue to hold talks with Myanmar for sourcing of gas," he said.
Market reports of China having signed an agreement with Myanmar for import of gas through a pipeline have raised concerns in India, which too is banking on the gas-rich South Asian country for gas supplies.
This is apart from its own share of gas from the offshore Block A1 and Block A3 in which ONGC Videsh and GAIL (India) Ltd together hold 30 percent participating interest.
For over a year, India has been striving to persuade Bangladesh to grant transit rights for bringing the Myanmar gas through a pipeline.
India fears the delay in a decision by Bangladesh might lead to Myanmar seeking alternate markets for its gas.
News agency PTI adds from New Delhi : In a major blow to India's effort to secure its energy needs through transnational pipelines, Myanmar has refused to supply natural gas to New Delhi and instead preferred doing business with China.
After beating Indian firms in overseas oil field acquisitions on three occasions in the last five months, Hong Kong-listed Petrochina has inked an agreement to purchase gas from A1 block in the Bay of Bengal.
"Ajay Tyagi, joint secretary (gas), ministry of petroleum and natural gas, had to cut short his trip and return after Myanmarese authorities said they had tied-up gas sales with China," an industry representative said.
A-1 block has South Korea's Daewoo as operator and India's Ongc Videsh Ltd (20 per cent) and GAIL (10 per cent) as its partners. India had proposed to build a $1.0-billion 290-km trunk line from the west coast of Myanmar to West Bengal via Bangladesh for importing gas from the A-1 block and possible reserves in the adjacent A-3 block. OVL and GAIL hold 30 per cent stake in A-3 block as well.
New Delhi had also planned to use the Myanmar-Bangladesh- India pipeline to bring stranded gas in the Northeast to consumption centres.
Sources said vice chairman of Petrochina and ministry of energy (Myanmar) signed an agreement, under which the ministry agreed to sell 6.5 TCF from A-1 block (Rakhine coastline) reserve through an overland pipeline to Kunming (China) for 30 years.
Commercial production from A-1 block, home to Shwe field which alone has been assessed by the Houston-based consulting firm Ryder Scott Co to contain 2.88 trillion cubic feet to 3.56 trillion cubic feet in place volumes, was expected to commence by 2009.
Block A-1 entered the third extension period last month, which is likely to be over in October 2006, with a work programme of drilling of six appraisal/exploratory wells. The drilling campaign is already under way.