The New Nation - Internet Edition

Desk Report

Myanmar may supply natural gas to Bangladesh to help it produce fertiliser for use in both countries. Bangladesh will have to wait until December when a new field is due to be explored, Reuters news agency reported.

Meanwhile, UNB reported, Myanmar has no gas right now for export to Bangladesh. Myanmar energy minister Brig Gen Lun Thi conveyed his country's position during a meeting with his counterpart in Dhaka.

The Myanmar minister expressed his country's interest in moving forward a Bangladesh proposal for undertaking a hydropower project in the neighbouring country from which the power-hungry Bangladesh will get electricity.

As per 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 goes to Myanmar's share as royalty.

After the meeting was over, Dr Tamim told reporters that he discussed, in particular, two issues?-gas import and hydropower project.

"Bangladesh has offered Myanmar to import gas on two modes--either cash purchase or setting up a fertiliser plant under joint venture," he said.

Under the partnership, Bangladesh will provide land and expertise while Myanmar its gas and both then can share the output.

But the Myanmar minister informed that 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.

Tamim said the Myanmar minister also told him that if any new gas could be discovered from the ongoing exploration, then it would consider exporting to Bangladesh. "But the price will have to be same or better."

Reuter adds: Later the minister discussed demarcating the two countries' maritime boundary with Bangladesh's energy adviser M Tamim, who said Yangon would not object to Bangladesh's bidding process for hydrocarbon exploration in the Bay of Bengal.

"The minister assured us that his country will not raise any objection regarding Bangladesh's offshore bidding process in the Bay of Bengal," Tamim said.

Bangladesh floated tenders on Feb. 15 for exploration in the bay and seven firms have submitted 22 bidding documents to search for gas and oil in 15 offshore blocks, officials said.

Both India and Myanmar objected, saying some of the blocks were disputed.