If the pipeline enters India directly from Myanmar through the northeastern states, it would come as a boon as the gas produced in these states cannot be piped to the more lucrative markets elsewhere in India at present. The region as well as oil exploration companies would gain from higher prices, if the northeastern gas can be shipped. "A pipeline is like a road, it benefits the entire territory that it passes through", a senior Gail official said. Since the gas from Myanmar is expected to flow over a period of 15 to 20 years or even more, the expenses of laying the pipeline entirely through the Indian territory could well be worth the additional cost. "While petroleum minister Mani Shankar Aiyar had made good headway with the proposed Myanmar-India-Bangladesh pipeline, Dhaka has queered the pitch by bringing in bilateral issues into trilateral talks", a senior official pointed out.

India is predicted to require 400 million standard cubic meters of gas per day by 2025, up from today's 90 million standard cubic metres. The pipeline was one of several options India has been considering to bring gas reserves from the Shwe Field's Block A-1 site. India's state-run Oil and Natural Gas Corporation has a 20 per cent stake in Myanmar's A-1 and A-3 Blocks, while GAIL has a 10 per cent stake in the two sites.

This year, India also struck a 25-year deal to import 7.5 million tonnes of liquefied natural gas a year from Iran from 2009. Energy-hungry India is increasingly looking for more fuel as demand soars with rapid economic growth.