India, Bangladesh in Gas Pipe Talks

India and Bangladesh are discussing how a gas pipeline that would link their two countries to Myanmar might be financed.

“We are working towards getting a gas pipeline between the two countries,” foreign ministry official Sripriya Ranganathan said at the International Conference on India-Bangladesh Multi-Sectoral Cooperation in Delhi, the New Indian Express reported January 23. Indian state owned Oil and Natural Gas Company (ONGC) and Bangladesh Petroleum Corporation are in negotiation to build the 6,900-km pipeline that would link Bangladesh, Myanmar and north-eastern states of India.

“The negotiations are going on to finalise who will finance the pipeline,” Ranganathan told the New Indian Express. The pipeline project was conceived under the Hydrocarbon Vision 2030 for the north-eastern region and is planned to connect Chittagong (in Bangladesh), Sitwe (in Myanmar) with north-eastern states.

Demand for gas in Bangladesh is rising rapidly as the economy continues to expand. Dhaka has sought New Delhi’s help in facilitating gas imports from Myanmar. Myanmar’s gas exports to Thailand and China, its two main customers, have fallen in recent months and Dhaka feels Bangladesh could be a replacement as domestic demand is rising steadily.

Bangladesh is also keen on importing LNG and is building adequate import infrastructure. Apart from signing agreements for FSRUs, state owned Petrobangla has signed a memorandum of understanding to set up LNG import infrastructure with Indian Petronet. 

Shardul Sharma