NEW DELHI: The proposed natural gas pipeline from Myanmar to India via Bangladesh has run into problems, leading to the exploration of other options such as liquefied natural gas shipments by the two countries. According to Petroleum Minister Mani Shankar Aiyar, there has been some delay in the pipeline initiative due to some outstanding issues between India and Bangladesh.

Speaking after a meeting with the visiting Myanmar Energy Minister, Brig. General Lun Thi, here on Wednesday, Mr. Aiyar said the Government would continue to sort out the issue with Bangladesh.

The techno-commercial working committee would examine the viability of a much longer onshore pipeline through the northeastern region as the option of LNG ships from Myanmar. The pipeline would transport gas from the A-1 block in the Bay of Bengal as well as possible reserves in the adjoining A-3 block. ONGC Videsh Limited and GAIL have a 30 per cent stake in these blocks.

Mr. Aiyar, who had discussions with the Myanmar Minister on energy cooperation, conceded that the best alternative of gas evacuation would be through the Myanmar-Bangladesh-India pipeline. Till the issues with Bangladesh were resolved, the committee would further examine other options and then meet in Yangon at the end of this month.

Contentious issues

The contentious issues with Bangladesh were said to be related to the provision of a trade and power corridor to Nepal and Bhutan as well as steps to reduce the trade deficit with India.

The Myanmar Minister said their estimates showed that the A1 block had about 9 trillion cubic feet of gas which might yield about seven million tonnes of LNG annually. He felt that India needed to take an early view on purchasing this LNG.

India will be extending a credit of $20 millions to Myanmar for upgrading the Thanlyin refinery, according to the minutes of the meeting signed by the two sides.

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