ASIA

India to supply Myanmar with diesel

The Indian government has announced that it will be exporting the surplus diesel produced in the country's north eastern refineries to Myanmar in June. It has also indicated that it is looking into the idea of laying a product pipeline to its neighbour.

If all things go according to plan, India will be exporting around 125,000 tonnes of diesel from the Numaligarh Refinery by road. The plant currently produces around 1.09 million tonnes of diesel per annum with only 25% of that consumed domestically.

According to an Indian government official, "Importing diesel from Numaligarh makes a lot of economic sense as it will save Myanmar in transport cost." Numaligarh is only 120 km away from the India-Myanmar border.

There is also talk of a pipeline to Yangon but, according to Indian government officials, "[A pipeline] will [only] be viable with minimum volume of 600,000 tonnes." Myanmar currently imports around 5 million tonnes of diesel per year from Thailand.

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