Bangladesh insisted upon a reduction of its trade deficit, and the establishment of a trading corridor for Nepal and Bhutan, as conditions for implementation of a development agreement signed three years ago.
China has started constructing pipelines to export Myanmar gas, but the fields are considered large enough to also supply India and Bangladesh.
Various options are being considered for the proposed 950 km offshore pipeline, extending from Block A-1 to India, including a land route via the eastern Indian states of Tripura and Mizoram, an offshore route through the coastal areas of Bangladesh and a deep-sea route with landing in the state of Orissa. A northern route which bypasses Bangladeshi territory is also under consideration.
“Something can happen in two to three years with Indian companies like GAIL, Essar Oil, the Oil and Natural Gas Corporation, and the Indian Oil Company exploring gas in Myanmar,” Myanmar’s ambassador to India, U Kyi Thein recently told local media.
The proposed pipeline from Myanmar to India through Bangladesh has been under discussion for the past 13 years, but has been repeatedly halted by political tension.