GAIL to invest Rs 1,500-cr in Myanmar plant

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New Delhi, Feb 14: GAIL (India) Ltd has lined up a Rs 1,500-crore investment for setting up an LPG plant in Myanmar. Recently, LPG bottling and marketing rights were extended to the state-owned gas major with effect from April 1, 2006.

The company is planning to set up a barge-mounted LPG plant in the Yetagun gasfield, Gulf of Mataban (offshore Myanmar). The proposed Yetagun LPG plant would produce about 2.5 lakh tonne of LPG a year from about 11.3 mmscmd of gas. Currently, Myanmar is exporting the Yetagun gas to Thailand by pipeline.

The plant will recover LPG from rich gas, after which Myanmar would export the lean gas to Thailand. India would gain by reduction of its LPG deficit, which is about 2 million tonne a year.

Detailed discussions on various aspects of this project will be held between GAIL CMD Proshanto Banerjee and Myanmar deputy minister of energy Brig Gen Than Htay, who is in India to attend the third Asia Gas Buyers summit.

Mr Banerjee told FE the LPG produced in the plant can be brought to India through ports located in the eastern coast of India such as Haldia and Vishakapatnam. “This project will secure significant LPG supplies, which is needed for GAIL for establishing itself in the LPG retail market.”

Since LPG produced from this plant would be extracted from natural gas, it has the added advantage of use as auto LPG, which refinery LPG cannot cater to,” he said.