Fresh move to import gas from Myanmar as it finds new field

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FHM Humayan Kabir
The government is going to take a fresh move to import gas from Myanmar, which has recently discovered hydrocarbon reserve in the area close to Bangladesh border, officials said Friday.
"Indian company Essar Oil has recently discovered gas in blocks L and A-2 in Myanmar's Arakan province. Now we will negotiate with the Myanmar on gas import," a senior energy division official told the FE.
As the Myanmar government in October last year assured Dhaka of export of its gas from any new reserve, it is high time to negotiate with the country, he said requesting anonymity.
Bangladesh's High Commissioner to Myanmar recently sent a letter to energy ministry informing the gas discovery at blocks L and A-2 by the Indian Essar Oil and requested to have talks on gas import issue.
Based on the information, the energy division has sought opinion of the Petrobangla on the possibility of gas import from the two blocks in Myanmar's Rakhine state.
"We will send our positive opinion to the energy division next week. Import of gas is one of the options at this moment," Petrobangla chairman Jalal Ahmed said.
If the government's top level decides to import the Myanmar gas, a bilateral discussion should be arranged soon to get gas from the newly discovered fields, he said adding the Myanmar vice minister during his last Dhaka visit assured of gas export.
In October last year, Myanmar's Energy Minister Brig General Lun Thi in a talk with chief adviser's special assistant Prof M Tamim assured export of natural gas to Bangladesh if it finds new gas reserves.
The gas supply shortfall has hard hit Bangladesh over the last couple of years as the demand for energy is increasing in the country.
The country produces about 1800 million cubic feet of gas per day (mmcfd) against the demands for over 2000 mmcfd.
"As the L and A-2 blocks are close to Cox's Bazar area, it will be easer to bring gas to Bangladesh's energy hungry Chittagong region," the Petrobangla official said.
The Indian Essar Oil, under a production sharing contract with Myanmar, had completed seismic survey and found gas presence at the blocks L in Sittway area and A-2 in Mongdu area in Rakhine state, the Petrobangla official said.
Myanmar has abundance of natural gas resources especially in its offshore areas.
Last year, Bangladesh took move to import gas from Myanmar, which faced setback in November same year due to disputes over an exploration works at the AD-7 blocks by Korean company Daewoo International.
Bangladesh protested the exploration work at Myanmar's block AD-7 saying the company has entered into the Bangladesh's economic zone in the Bay of Bengal. Daewoo had to withdraw its exploration works.
"We are interested to resolve the maritime boundary disputes with Myanmar. I think the next round of talks with the neighbouring country will help resolve the issues," the energy division official said.
Currently, 13 foreign oil companies, mainly from Australia, Britain, Canada, China, Indonesia, India, South Korea, Malaysia, Thailand and Russia, are involved in oil and gas exploration and production works in Myanmar under productions sharing contracts.