Burmese military junta makes sudden turnaround on tri-nation gas pipeline deal

The Burmese military junta recently informed the Bangladeshi company, Mohona Holdings Limited, responsible for building the Burma-Bangladesh-India gas pipeline, that it intends to export gas from A-2 block instead of A-l block, due to a recent deal with China to export gas from A-1 block. The decision was made in response to the long delays associated with the tri-nation gas pipeline project.

The junta is yet to officially inform its Indian counterparts neither about the new deal with China, nor about its intention to switch to A2 block to supply India.  

The tri-nation gas pipeline project was initiated in 1997 by Mohana Holdings Limited to carry natural gas from Burma to India through Bangladesh on a Build-Own-Operate (BOO) basis. The three parties are now close to reaching an agreement concerning the project, especially after the recent implementation of the South Asian Free Trade Agreement (SAFTA) across all SAARC countries. SAFTA has paved the way for Bangladesh's conditions surrounding the project to be met.  

The three countries have held many meetings since 1997 to hammer out a framework for the pipeline project, only for the Burmese junta to suddenly change its mind and make a deal with China. Furthermore, exporting gas from A-2 block to India will entail an additional 150kms of pipeline.  

This latest move is expected to damage relations between Burma and India and between Burma and Bangladesh, as the entire project is now in jeopardy.  

As always, the junta has been cleverly playing off the two most powerful Asian countries, China and India, against each other, and exploiting any opportunities that arise.  

It is standard practice for the military junta to violate agreements and hold the international community as well as its neighbors in contempt.