Pipeline to China:Burma is moving towards an LNG pipe link
Burma favouring gas pipeline link
The Burma government strongly favours selling its natural gas via a pipeline to China, possibly shutting out South Korea and Japan from access to the country's vast reserves, Seoul's energy ministry said today.
Korea and Japan have been pushing for Burma to develop liquefied natural gas facilities as the country debates how to export its gas, while energy-hungry neighbours China, India and Thailand are all calling for pipelines.
"[Burma] is insisting on delivering the gas to China through a pipeline," South Korea's energy ministry said in a statement, following vice-minister Lee Jae-hoon's meeting with energy officials in Burma.
A pipeline could help Burma strengthen ties with a powerful neighbour, but could frustrate Korea's Daewoo, which is developing the gas fields and has higher bids from LNG buyers, reported Reuters.
"The vice energy minister explained the superiority of the LNG process and strongly suggested it supplies the gas in a form of LNG to South Korea," the energy ministry added.
Burma's response was not immediately known.
An LNG facility would allow Burma's government to sell its gas to more distant countries, but would be more expensive and only feasible if the reserves are large enough.
The gas will come from Burma's A-1 and A-3 gas fields, operated by Daewoo, which has said development costs for the fields would come to between $2 billion and $3 billion.
Daewoo says a final decision on the production scheme should be made by mid-year.
It was unclear how a final decision on the gas development will be made, and how much say Daewoo will have in the process.