Seoul: South Korean company Daewoo International Corp has picked China as a preferred bidder for natural gas from its project in Myanmar.
This announcement by the company confirms that China is at the front of a queue to grab gas that India and Thailand had also been angling for, as the three battle to secure cleaner fuel for their fast growing economies.
Daewoo, which operates Myanmar’s A-1 and A-3 natural gas fields, said in a regulatory filing that it would award partners the right to buy gas via pipeline, with the results of negotiations to be announced by 5 June at the latest.
It did not name any partners, but the Indian minister of state for petroleum has alreadyy said the gas would be sold to PetroChina . Myanmar officials have also previously said the gas would go to China.
It was also reported in April that China expected to spend $1.08 billion (Rs4,264 crore) on a gas pipeline between the two countries. Company officials were not immediately available for comment. India, China and Thailand have been bidding to buy gas from the two fields, which hold 4.53-7.74 trillion cubic feet (tcf) of recoverable reserves.
Daewoo has a 60% stake in the fields, followed by Korea Gas Corp with a 10% stake, India’s Oil and Natural Gas Corp with 20% and India’s GAIL with 10%.
Myanmar has at least 90 TCF of gas reserves and 3.2 billion barrels of recoverable crude oil reserves in 19 onshore and three major offshore fields.