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Myanmar agrees to export gas if new reserve found

by indoadmin last modified 2008-11-12 10:58

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.

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