Dhaka, June 30: The Bangladeshi government is sending out mixed signals on its policy on gas exports. While it publicly claims there is no chance of exporting gas before domestic demand is met, it has been sending delegations abroad to discuss trade in gas as foreign companies have of late been reluctant to sign exploration deals. There is now talk of a Bangladeshi team visiting India shortly to discuss the issue.A high-powered delegation headed by a minister is currently visiting the United States, which has been pressing Bangladesh to export gas to India. The team is to discuss energy-related issues, including gas utilisation prospects, with US leaders.
The delegation would discuss the possibility of gas export from Bangladesh, official sources here said. They said the team, on the conclusion of the US visit on July 3, would go to India to discuss gas export. But they could not confirm the Indian visit.
The despatch of the high-powered team comes close on the heels of a top level government meet lastweek to discuss the possibility of pipeline export of gas to India.
In the US, the Bangladeshi team is scheduled to meet energy secretary Calvin Humphrey, assistant secretary of state for South Asia Karl Inderfurth and many other government officials and business leaders. Meanwhile, official sources said the second round of bidding for gas blocks is now in a crucial phase as foreign bidders are putting pressure on the government to finalise deals for the most coveted blocks 9 and 11 and ensure export of gas. "These two vital issues have become stumbling blocks in the final negotiations for gas exploration," one source told IANS. The government is not willing to hurry the process, he added. Foreign companies are not willing to sign the final agreements until export is guaranteed and matters regarding blocks 9 and 11 are settled at the same time, a highly placed official source said.Under continuous pressure from foreign oil and gas companies to ensure export, the government has undertaken a comprehensivestudy to assess the real position of the country's gas reserve as well as the actual domestic need, the source said.
The mineral resources ministry and an US agency have started a study which is scheduled to be completed in December this year, ministry sources said. "First we will assess the real position of the gas reserves and the actual demand of gas-based industries to meet all these domestic requirements, then we will go for export of gas," said a senior official of the energy ministry. A highly placed source in the government said it would take at least three years to complete the whole process of assessment and exploration to estimate the total domestic need before export of surplus gas could be considered.
"There is no denying that the country needs foreign currency. There is nothing wrong with earning foreign currency by exporting surplus gas, but the question of export of gas need not be thought about at the moment. We have many things to do other than discuss it now," he said. India is short ofenergy and foreign companies are looking to sell gas to it from reserves in Bangladesh, especially since transfer would be cheap considering the geographical continuity. According to the foreign companies, India would not wait for long to decide on importing gas from Iran or other countries for its growing industries. Bangladesh should therefore decide now, they feel."The foreign bidders are worried about India. If this good client goes out of their hands due to the slow process and lack of a prompt decision by the government, the exploring companies feel they would be in trouble with the huge quantity of gas in Bangladesh," said a foreign expert. According to him, India was the lone country which could offer a good price for the purchase of Bangladeshi gas as the transportation cost would be lower. Government leaders, including prime minister Sheikh Hasina Wajed, have been saying they are not thinking of exporting gas before the reserves were properly assessed and domestic demand was met. Such a stand hasbeen taken primarily because the main opposition Bangladesh Nationalist Party (BNP) is vehemently opposed to gas export to India.
--India Abroad News Service
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