Threat to Myanmar-China pipeline

Vol 13, PW 8 (24 Sep 09) News in Brief

Arakan separatists in Myanmar are threatening to blow up a proposed pipeline to evacuate gas to China from the offshore A-1 and A-3 blocks, where ONGC Videsh and GAIL hold a combined 30% stake.

“We will resort to terrorism if necessary,â€‌ Thein Oung Gyaw, â€کcommander-in-chief’ of the self-styled Arakan army told PETROWATCH, outside a Kolkata court where he and 32 others are on trial. “We want electricity, we want development and we welcome foreign investment.

But we will under no circumstances allow our gas to be taken to China or India.â€‌ Last December, Myanmar authorities signed away gas from A-1 and A-3 to China National Petroleum Corporation for $7.72/mmbtu over 30 years from 2013, disappointing India, which wanted the gas for itself.

Since then CNPC has announced plans to lay a 950-km, 40-inch gas pipeline to China and is offering the Daewoo-led consortium of OVL, GAIL and Myanma Oil and Gas a 49.9% stake.