The ONGC Videsh-Gail (India) consortium is planning to acquire 50 per cent stake, currently held by Daewoo International, in a rich gas block in Myanmar.

The gas block (A3) is adjacent to A1 in which the OVL-Gail duo has a 30 per cent stake. OVL holds 20 per cent stake in the A1 block, while Gail has 10 per cent.

The proposal being considered is to transport natural gas from both A1 and A3 fields to India, in the form of LNG. This would be economically feasible if India's share in the two blocks is at least 10 mmscmd.

Meanwhile, the Bangladesh government is not to keen on the proposed transnational gas pipeline transporting gas from the A1 block of Myanmar to India, via Bangladesh.

If the equity holding in the 6,780 sq km A3 block works out and that economic feasibility is established, construction on the LNG plant could begin by 2007. There is also a proposal to extract C2/C3 and LPG at Myanmar, before transporting lean gas to India.