Daewoo: Myanmar gas delivery via pipeline a priority
Global Insight / June 06, 2007

South Korea's Daewoo Corp. is still in talks with a number of prospective customers for the output from its Myanmar natural gas assets but now looks to be favouring a pipeline route to market.

In a filing to the Korea Exchange, Daewoo stated that it is considering gas delivery via pipeline as a priority. However, the company indicated that the final decision on the matter will only be made after negotiations are complete.

Significance: China, India and Thailand are each vying for a share of the spoils from Daewoo's A-1 and A-3 offshore gas fields, while the South Korean and Japanese liquefied natural gas (LNG) markets are also potential customers.

The latest developments favoured a pipeline route to China and, while that remains a likely outcome, Daewoo's statement reveals that is not a certainty (see. Asia-Pacific: 23 April 2007). There is no indication of just when the negotiations will be complete, but the outcome will be decisive for the supply balance of any of the markets involved.