Myanmar to Sell Natural Gas to China

YANGON, Myanmar (AP) - Myanmar has signed a memorandum of understanding to sell natural gas from a field off its western coast to Chinese state-owned PetroChina Co. Ltd., a local newspaper reported Sunday.
The agreement to sell gas from Block A1 off the coast of Rakhine state was signed in December but not announced in Myanmar's state-owned media at the time.

The weekly English-language Myanmar Times reported in its new edition that Yang Fang, an economic attache with the Chinese Embassy, confirmed the signing in an interview.

Indian media last week had published unofficial reports of the deal, which was seen as a blow to New Delhi's ambitions to secure gas supplies from Myanmar by pipeline.

"The memorandum is aimed at enhancing cooperation between Myanmar and China in the oil and gas sector," Yang was quoted telling the Myanmar Times.

The Indian reports said Myanmar would sell 6.5 trillion cubic feet of gas over 30 years from Block A1. However, the Myanmar Times cited a Yangon-based energy expert saying that the state-run Myanma Oil and Gas Enterprise will make a final decision on details of the sale of its gas only after the completion of an independent assessment of the entire block's potential.

An assessment of the Shwe gas field portion of A1 block by the Houston-based Ryder Scott Company in December estimated gas deposits of 2.88 trillion to 3.56 trillion cubic feet, the Myanmar Times said.

The A1 block is being developed by a consortium headed by South Korea's Daewoo International Corp. which holds a 60 per cent stake. India's state-run Oil & Natural Gas Corp. has 20 per cent share in the bloc and the Gas Authority of India and Korea Gas Corp. each hold 10 per cent.

Myanmar began allowing foreign investment in 1988 and has energy exploration and development deals with Total SA of France, Unocal Corp. of the United States, Petronas Bhd. of Malaysia, Thailand's PTTEP PCL and Korea's Daewoo, along with other companies from India, Australia, Canada and Indonesia.

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