Last Tuesday, Indian Ambassador in Yangon R K Bhatia persuaded Myanmar Energy Minister Lun Thi to come back to the negotiating table for sale of gas from Block A-1 to India instead of China. Myanmar, according to Bhatia, has now become ‘‘more accommodative’’ and has expressed ‘‘willingness to discuss commercial and contractual terms of the gas sale-purchase with the Indian side’’. The rider is that New Delhi must provide a clear indication to Yangon about its plan to evacuate this gas to India in a ‘‘time-bound manner’’. India has also been told that Myanmar is under ‘‘no contractual obligation to sell A-1 block gas to China’’ as the MoU with PetroChina did not mention any particular gas block.

Lun Thi had informed a ndia’s Petroleum Ministry that Myanmar had decided to sell A-1 gas to PetroChina with a view to monetising this gas at the earliest. The MoU was for sale of 6.5 trillion cubic feet of gas from its A-1 Block for 30 years.

Myanmar said it signed the MoU with PetroChina because no progress had been achieved in the tripartite agreement between Myanmar, Bangladesh and India for the proposed pipeline project, whereas the Chinese had assured that they would lay their pipeline on time. (According to a status paper, the outstanding issues with Bangladesh on the pipeline is expected to be resolved when its Prime Minister visits India in March.)

The gas supply from A-1 is important since Petroleum Minister MS Aiyar plans to build a 290-km pipeline from Myanmar’s west coast through Bangladesh to bring the gas to India’s east coast. Another importance is that the A-1 gas is equity gas for India with ONGC Videsh Ltd and GAIL (India) Ltd holding 30 per cent in the joint venture for exploration and production. Block operator Daewoo and Korea Gas hold 60 per cent and 10 per cent, respectively. Last month, Myanmar had sent a feeler to New Delhi asking Aiyar to visit Yangon in the first week of January.