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|19 January 2010
India’s state firm to take 4% share in Myanmar-China project
India’s state-run gas transportation company Gail India will pick up a 4 percent stake in the $2-billion Myanmar-China gas pipeline project, the Economic Times quoted company chairman and managing director BC Tripathi as saying Monday.
OVL, the overseas arm of oil and gas major ONGC, will pick up another 8-8.5 percent stake in the pipeline project that will link two gas producing blocks A1 and A3 in Myanmar with consuming centres in the mainland China.
“The Gail board has already approved the stake pick in the pipeline project. The investment would go through once approvals from the government come,” Mr Tripathi said.
OVL, along with Gail, already has a 30 percent interest in two gas producing blocks in Myanmar. The companies, however, could not secure gas from the project as the neighbour preferred China over India for gas sales from A1 and A3 blocks.
In 2004, Myanmar had committed that Gail would be the preferential buyer of the gas but opted for China later due to political considerations.
The total investment of Gail and OVL is expected to be around $250 million in the 870-km pipeline China National Petroleum Corporation (CNPC) is laying in Myanmar.
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