Myanmar agrees to export gas if new reserve found
October 9, 2008: Myanmar will export natural gas to Bangladesh if it finds new gas reserves while it has shown interest in setting up a hydropower project in that country from where electricity could be supplied to Bangladesh.
Sources: The Daily Star
"In principle, Myanmar
has no restriction on exporting gas to us. They are open to discuss with us the
gas export issue. That country will explore two new potential fields in
December," Prof M Tamim, chief adviser's special assistant for power and
energy ministry, told The Daily Star yesterday evening.
The decision came out of a meeting between M Tamim and Myanmar Energy Minister
Brig General Lun Thi yesterday.
Neighbouring Myanmar
expressed positive interest in both ideas, as Bangladesh has a huge demand for
power as well as for fertilisers including urea which requires gas for its
production.
Tamim however said Bangladesh
must compete with other gas importers in terms of pricing and other related
issues. "The Myanmar
minister said he will seriously look into our proposal for setting up a
hydropower plant in that country," he said.
UNB reported that according to the proposal, Bangladesh
will build the hydropower plant at its own cost and get 70 percent of the
electricity from the project, while 30 percent will go to Myanmar as
royalty.
The hydropower project proposal was initiated by Bangladesh about two years ago.
Both sides also signed a memorandum of understanding (MoU) to implement the
project.
As a follow-up, Bangladesh
offered to conduct a joint visit to select a project site in the Rakhine state
of Myanmar
more than six months ago, but there was no response from the other side.
Tamim yesterday said now the Myanmar
side agreed to conduct the joint visit by experts to select the project site.
"We've urged the Myanmar
minister to expedite the move," Tamim said.
"Bangladesh has offered
Myanmar
to import gas on two modes -- either through cash purchase or through setting
up a fertiliser plant under a joint venture," Tamim added.
Under the partnership, Bangladesh
will provide land and expertise while Myanmar its gas, and then both will
share the output.
But the Myanmar minister
said his country has no available gas right at this moment to export to Bangladesh as it has already signed deals with China and Thailand to export its gas from the
existing fields. The rate of gas export is fixed at US$ 9 per unit.
The chief adviser's special assistant said the proposed tri-nation gas-pipeline
issue also came up for discussion.
But the Myanmar side again
cited the same problem regarding the matter -- there is no available gas for
pipeline export to India
through Bangladesh.
About the dispute between the two countries over exploration of offshore gas
blocks, Tamim said Myanmar
did not raise any objection to Bangladesh's
move for gas exploration in the country's maritime territory.
"But they said none should carry out exploration work in disputed areas
before those are settled," he added saying, Bangladesh
requested Myanmar
to expedite the discussion currently going on between the two countries
regarding the dispute.
President Iajuddin Ahmed also expressed his keen interest in importing gas from
Myanmar for fertiliser manufacturing and for re-export, as the vice-chairman of
that country's ruling State Peace and Development Council, Vice-senior General
Maung Aye, made a goodwill call on him in Bangabhaban earlier in the day.
During a discussion with the visiting Myanmar
government leader, the president expressed his satisfaction at the existing
bilateral relations between Bangladesh
and Myanmar.
President Iajuddin and General Maung Aye assured each other of 'all-out
cooperation' to the mutual benefit of both countries.
Briefing reporters in Bangabhaban after the meeting, Foreign Adviser Iftekhar
Ahmed Chowdhury termed the discussion 'fruitful', and said both sides agreed
that there is a tremendous scope for enhancing the volume of trade and commerce
between the two countries.
The president also emphasised developing education sectors of both countries
through mutual cooperation. In response, Gen Maung assured him of giving
support for enhancing the education sector, the foreign adviser added.
The Myanmar vice-senior
general assured that they will export 50,000 to one lakh tonnes of rice to Bangladesh on a
regular basis.
Replying to a question, Dr Iftekhar said, "The discussion on maritime
boundary demarcation is going on between the countries and it has already been
decided that the next technical committee meeting on maritime boundary will be
held in Dhaka in November."
The possibility of setting up a mechanism comprising Bangladesh,
Myanmar and UNHCR to
expedite repatriation of the remaining Rohingya refugees in Bangladesh, and
the scheduling of the next expert level meeting on maritime boundaries were
also discussed.
"We spoke of ways and means to implement the common projects that were
discussed in the bilateral meeting yesterday. Building our friendship is
obviously to our mutual interest," Iftekhar said after a meeting with Myanmar Foreign
Minister U Nyan Win.
The foreign adviser said, "We will expand both political and economic
relations which will be to the advantage of both. Strengthening relations with
all our neighbours is a pillar of our ten-point foreign policy, and links with Myanmar come
within that purview."
Myanmar Vice-senior General Maung Aye also paid a courtesy call on Bangladesh
Army chief General Moeen U Ahmed in the Army Headquarters yesterday.
"They exchanged greetings and discussed matters of bilateral
interest," said an ISPR release. General Maung Aye was apprised of
different activities of the Bangladesh Army in a presentation.