New Delhi, July 28: India has submitted a detailed feasibility report (DFR) to Myanmar for a gas pipeline between the two countries that will bypass Bangladesh and stretch from the Sitwe port in Myanmar to Gaya in Bihar where it will link up with the Haldia-Jagdishpur oil pipeline.

The pipeline will traverse across Myanmar and touch Aizwal in Mizoram, Silchar and Guwahati in Assam and Siliguri in North Bengal.

Officials said there would be two tap off points ? in Tripura, 260 km from the Myanmar border, and Assam, 650 km from the border.

The DFR was prepared by Tractabel of Belgium who was contracted by GAIL, one of the promoters of the Myanmar gas project that also includes ONGC.

The pipeline, with a daily capacity of 18-28 million standard cubic metres (MMSCMD) of gas, will enable Myanmar to export gas from the huge offshore A1 field for which the landfall point is Sitwe.

Initially Myanmar was negotiating with India for the gas; later it signed an MoU with China.

The MoU with China strengthened Myanmar’s bargaining power vis-a-vis India. It has indicated that there is gas for both India and China and has, therefore, signed MoUs with the two countries.

It will take 36 months to complete the pipeline, which will be 1,575 km long.

Though the route will be longer than a pipeline through Bangladesh, India had little choice as Dhaka imposed tough conditions, including creating a land corridor to Nepal. Bangladesh also wanted guarantees on more exports to India to redress the trade balance.

The reserves in the A-1 block in the Shwe field is 2.88 trillion cubic feet to 3.56 trillion cubic feet, according to Houston-based consulting firm Ryder Scott. Commercial production is expected to commence by 2009. The adjoining A-3 block also has a huge potential.

The price of the gas is also a contentious issue. To beat China, India is willing to enter into a “a take or pay” deal.