Govt to consider ONGC's plan on Myanmar pipeline proj this week
Press Trust of India / New Delhi Feb 15, 2010, 16:36 IST
The Cabinet may this week consider giving state-owned Oil and Natural Gas Corp and GAIL India Ltd approval to take stake in an $2 billion pipeline that China is building from Myanmar to transport natural gas found off the Myanmar coast.
"The proposal may come up before the Cabinet Committee on Economic Affairs (CCEA) on February 18," an official said.
China is building the $2.01 billion pipeline to ship gas from offshore blocks A-1 and A-3, where ONGC Videsh (OVL) and GAIL India hold 30 per cent stake, to China.
OVL, the overseas investment arm of Oil and Natural Gas Corp (ONGC), wants to take 8.35 per cent stake in the pipeline while GAIL wants 4.17 per cent. They will invest $251.2 million in the 870-km pipeline China National Petroleum Corp (CNPC) is laying to take the gas to mainland China.
The official said CNPC had offered 49.9 per cent stake to the consortium developing gas fields in blocks A-1 and A-3.
South Korea's Daewoo Corp holds 51 per cent stake each in Block A-1 and A-3, while OVL has 17 per cent stake. GAIL and Korea Gas Corp have 8.5 per cent each while the rest 15 per cent is with Myanmar's Myanma Oil and Gas Enterprise (MOGE).
The consortium is investing $3.61 billion in bringing to production gas fields in the two blocks.
"The 49 per cent stake is being apportioned in the same ratio as individual stakes in Block A-1 and A-3," he said.
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