ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corp (ONGC), may pick up a stake in the USD 1.95 billion gas pipeline that China is building for ferrying natural gas found off the Myanmar coast.
China National Petroleum Corp (CNPC) is laying a 870-km pipeline in Myanmar to transport gas found in blocks A-1 and A-3 to mainland China.
Sources said, CNPC has 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 60 per cent stake each in block A-1 and A-3 while OVL has 20 per cent interest. GAIL and Korea Gas Corp have 10 per cent each.
Myanmar’s state-run Myanmar Oil and Gas Enterprise (MOGE) has right to take 15 per cent, subsequent to which Daewoo would have 51 per cent, OVL 17 per cent and GAIL and KOGAS 8.5 per cent each.
Since Daewoo was inclined to participate in the 40-inch pipeline and OVL board too has approved taking stake in the project, they said.
If all the consortium members decide to participate, the shareholding in the pipeline project would be CNPC- 50.9 per cent, MOGE- 7.37 per cent, Daewoo- 25.04 per cent, OVL-8.35 per cent, GAIL and KOGAS- 4.17 per cent each.
Gas will be sold to China for USD 7.72 per million British thermal unit at the landfall point in Myanmar.