Unocal plans Bangladesh-India gas pipeline

Dhaka, Oct 31: US oil giant Unocal announced a controversial $1.2 billion proposal to export natural gas from Bangladesh to India.
The proposed Bangladesh Natural Gas Pipeline Project will entail the construction of a 30-inch diametre pipeline from the Bibiyana gasfield in north-east Bangladesh to the Indian capital New Dehli — a distance of 1,363 kilometres, Unocal said in a statement.

“Unocal’s export proposal is based on sound market, technical and economic studies and we believe that gas exports can play a significant role in helping Bangladesh to achieve its economic, social and energy goals,” the statement said.

The benefits would include $3.7 billion in revenue to Bangladesh government over 20 years and $500 - 700 million in immediate foreign direct investment, it added.

Detailed plans were submitted this week to Bangladesh’s state-run Petrobangla.

Exports of natural gas have not yet been allowed by Bangladesh, so any pipeline would first have to be approved by the government.

Unocal’s announcement came shortly after Bangladesh’s new Bangladesh Nationalist Party (BNP)-led coalition government indicated its readiness to export natural gas to India.

In opposition, the BNP had opposed the idea which remains controversial as experts say Bangladesh does not have enough reserves for domestic use, let alone for export.

Leftwing parties are also against the idea, saying it could be “following a subservient foreign-policy” in allowing resources to be used abroad rather than for domestic needs.

— PTI