BD to resume talks with Myanmar to import gas

M Azizur Rahman The energy ministry has planned to initiate talks afresh with Myanmar to import natural gas, as the newly-elected President of the neighbouring country has assured Bangladesh of exporting gas, a top official has said Wednesday. "We will start fresh official talks with Myanmar over importing natural gas from there," energy secretary Mohammad Mejbahuddin told the FE Wednesday. He said Bangladesh had held several talks in this regard with the previous military regime of Myanmar. However, no significant headway on the planned import of natural gas was achieved. Mejbahuddiin said the latest assurance from the Myanmar's elected head of state to provide gas to Bangladesh is a new and encouraging phenomenon, and gas from Myanmar is likely to be rather cheap. Myanmar's President U Thein Sein assured Prime Minister Sheikh Hasina Tuesday of exporting gas to Bangladesh, subject to discovering new gas-field in its territory. The assurance came during a bilateral talk between Bangladesh and Myanmar at President Office in Nay Pai Taw. Bangladesh's Prime Minister earlier expressed interest in importing natural gas from the bordering country during her two-day visit there. "Natural gas could be imported from Myanmar's Block A-2 and Block L," she was quoted as saying. Development process in Bangladesh is being hampered due to gas supply shortage, she said, justifying gas import from there. Myanmar has already come to an agreement with China to export gas there from its existing gas-fields, the Myanmar President was quoted as saying. Bangladesh as a friendly country will surely get priority in gas export, following discovery of new gas-fields and availability of reserve in Myanmar, he said. Officials said the country's mounting local demand, driven by its expanding private sector, pushed the government to consider import of natural gas from neighbouring Myanmar. The country has a number of clients, who are interested in consuming imported gas, they said. The Karnaphuli Fertiliser Company Limited (KAFCO), an export-oriented international joint venture fertiliser factory owned by Bangladesh, Japan, Denmark and the Netherlands, is interested to use Myanmar gas to install its new unit for enhancing production, said an official. The entrepreneurs of the Korean Export Processing Zone (KEPZ) are also interested to procure Myanmar gas for use in their industrial units, he added. Both the KAFCO and the KEPZ are located in the country's south-eastern region, now hit hard by severe gas shortage. A private sector-led consortium, consisting the KAFCO and the KEPZ, earlier expressed interest to invest in installation of gas pipeline, if Bangladesh and Myanmar agree on gas import, the official said. Bangladesh was earlier in a position to allow a gas pipeline through its territory to carry Myanmar's gas to India. The negotiation on the proposed US$1.0 billion tri-nation gas pipeline has remained stalled for long. The country, which was considering gas export to neighbouring India six years ago, now intends to import gas from neighbouring Myanmar to meet its demand as its natural gas reserve is depleting fast.