Myanmar Gas Goes to China

Correspondent Derek Armstrong

Myanmar – China’s largest oil company signed a thirty year deal for coveted Myanmar gas supply, in an agreement signed December 24. The supplying group is led by Daewoo International Corp. and includes Oil & Natural Gas Corp (India), Myanmar Oil and Gas Enterprise, GAIL India (Ltd.) and Korea Gas Corp.) Gas will be pipelined to China National Petroleum Corp., starting 2012.

Myanmar’s gas supply is the target of competing countries including China, India, Thailand, and Japan, with gas reserves of 21.19 trillion cubic feet—at the end of last year.

Daewoo holds approximately a 51 percent in the fields with Myanmar Oil & Gas Enterprise at 15 percent share, Oil & National Gas at 17 percent, GAIL India 8.5 percent and Korea Gas 8.5 percent.

Prices are to be negotiated quarterly. Shares of Daewoo International fell 1.7 percent in Seoul trading.