India has lost the diplomatic battle to China to get natural gas deal from Myanmar. India had tried hard to get the gas deal from Myanmar but ultimately failed to get the project.

India’s efforts of pampering the ruling junta with bigger military aid have worked for nothing as the Yangon government has selected China in spite of India to sale the gas from the two undersea fields.

Interestingly, two Indian state-owned companies are together holding as much as 30% equity in the exploration of undersea fields.

The official reports issued from Yangon government said that according to March 14 MoU with China, Myanmar would sale the entire natural gas from A-1 and A-3 blocks in the Rakhine offshore to China.

The report said further that the gas would be transported through a 2,380-km pipeline that would connect Myanmar’s Kyakphyu in the Bay of Bengal to Rili in China’s Yunan.

For this deal, Myanmar would get an annual transit fee of $150 million for 30 years from China for the pipeline’s 990-km stretch in the country. The MoU for the deal was signed when a Chinese delegation led by PetroChina president Wang Lihua had visited Myanmar.

Now, ONGC Videsh and gas utility Gail that hold 20% and 10% respectively in the blocks has been failed to bring even their share of Myanmar gas to India.

Now, India has opted wait and watch policy to see the move of South Korea’s Daewoo. Daewoo is in charge of operations in the two blocks and the main suitor for gas in Myanmar.

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