China has pipped India to sign a 30-year agreement to import natural gas from fields lying in Myanmar offshore where India's state-owned companies have 25 per cent stake.
China's state oil and gas firm China National Petroleum Corp last week signed a Gas Sales Agreement with South Korea's Daewoo International for buying gas from the Shwe field in A-1 offshore block and the adjoining A-3 block, industry sources said.
Daewoo is the operator in the two blocks with 51 per cent stake while India's Oil and Natural Gas Corp has 17 per cent and GAIL 8.5 per cent. Korea Gas Corp has 8.5 per cent and Myanmar Oil and Gas Enterprise the remaining 15 per cent.
GAIL had offered a price of $5.01 per million British thermal unit to buy entire gas from the offshore fields and pipe it to India through the north-eastern states. But the military-rulers of Myanmar have chosen China, which will have to lay a longer pipeline to reach its south-western Yunnan province.
Sources said Myanmar would also be able to tap the pipeline running across its territory to meet its fuel needs once the gas starts flowing sometime in 2013.
Under the SPA, which cements a preliminary deal in June, CNPC would buy gas at the landfall point of A-1 and A-3 blocks. Shwe field in A-1 block has reserves between four trillion and six trillion cubic feet.
Besides, another five Tcf of reserves have been estimated in the A-1 block's Shwephyu field and two Tcf in the Mya field in the A-2 block, with a combined proven reserve of between 5.7 Tcf and 10 Tcf.
