Bangladeshi ministry wants to export gas to India

Friday, 07 March 2003, 20:30 IST
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DHAKA: Bangladesh's energy ministry has sent a proposal to the cabinet on exporting gas to India on a limited scale, saying it was the "best option" for the country. The ministry says Bangladesh has enough gas for its own consumption as well as export. An earlier report of the Gas Utilisation Committee had, however, said that current reserves are insufficient for exports. The proposal, sent last month, said that exporting gas to India was the "best option" for Bangladesh. The cabinet is likely to decide on it Monday. Energy Minister Mosharraf Hossain said Bangladesh has enough reserves to last till 2020 and if gas is exported on a limited scale, there will be no shortage. The proposal, drawn up by two government-appointed committees, outlined many options, including allowing international oil companies operating in the country to export their share of gas discovered instead of selling it to the government. This arrangement would apply only to new gas wells. Another proposal is to invest more in the sector and thereby encourage firms to seek fresh reserves. Gas exports are a controversial issue in Bangladesh with political parties constantly bickering over whether or not to sell the reserves. The opposition Awami League says there should be a five-year reserve before Bangladesh exports. The Bangladesh Nationalist Party (BNP)-led government has been under pressure from donors and investors since it assumed power in 2001 to export gas to India to help bring in much-needed foreign exchange and develop new gas fields. Foreign firms like U.S. major Unocal Corp have said they are unwilling to finance exploration in the country unless they are allowed to export to India. If Bangladesh has to develop its reserves, it will need around $4 billion as investment for exploration, development, transmission and distribution. Minister Hossain said: "Bangladesh will have to invest more for discovering and exploring new gas fields, otherwise we will face a crisis after 2004." Bangladesh reportedly has 14-15 trillion cubic feet (TCF) of proven and probably recoverable gas in 22 fields. It has consumed six TCF over the past 20 years.
Source: IANS
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