GAIL (India) has submitted a bid for importing 3.5 million tpa of LNG from Myanmar. The country proposes to sell its offshore natural gas in liquefied form.

GAIL had previously submitted its bid to Myanmar's energy ministry in September 2006 for purchase of natural gas from Shwe and Shwe Phyu fields in A-1 block and Mya field in A-3 block in offshore Myanmar.

GAIL planned to transport gas through a cross-border pipeline but the Myanmar government subsequently intimated GAIL that they were reviewing their decision to sell this gas through the pipeline route. South Korea's Daewoo International holds a 60 per cent operating interest in the two blocks off the west coast of Myanmar, Korea Gas Corporation owns 10 per cent, GAIL holds 10 per cent and ONGC Videsh has a 20 per cent stake.

In August 2006 the three gas fields -  Shwe, Shwe Phyu and Mya, have combined proven reserves of up to 10 trillion cubic feet, certified by international consultant Gaffney, Cline & Associates. Daewoo is to undertake further drilling in 2007 to see if the gas reserves in the two blocks can be increased further.

The company has also proposed building a LNG plant in Myanmar to commercialise the gas reserves. The invitation of bids for selling LNG can therefore, mean that Myanmar government will opt for setting up a 3.5 million tpa capacity LNG plant for gas exports.

Also See:

Gail signs production sharing agreement for block in Myanmar (09-Dec-06)