The proposed pipeline from Myanmar to India through Bangladesh has been discussed for almost thirteen years now, but has been repeatedly halted by political tension.

"We have received a green signal from Prime Minister Sheikh Hasina and forwarded the proposal to the foreign ministry to resume negotiations with New Delhi and Yangon in this regard," said secretary for the Energy and Mineral Resources division Mohammad Mohsin.

Investors in gas fields off Myanmar include: South Korean Gas Corporation, India's Oil and Natural Gas Corporation, GAIL India and Daewoo International.

In late 2004, India considered a pipeline from Myanmar running across Bangladesh. The 950 km pipeline was expected to enter eastern Bangladesh through the Brahmanbaria border point and enter India's West Bengal state from the northern Rajshahi area of Bangladesh. However, the project involved complex negotiations with Bangladesh, which refused to export its own gas to India, saying it must first ensure it had enough reserves to meet domestic demand for 50 years.

Bangladesh was not directly opposed to the pipeline project but was only prepared to agree under certain conditions to ensure it was going to be a mutually beneficial project. Bangladesh repeatedly expressed concerns about security and wouldn’t respond to a proposal by a local company, stating that a proposal from the Indian government would be preferable.

The Bangladeshi government proceeded to clarify its conditions, which included:

• The pipeline is to be laid along Bangladesh’s existing roads and highways
• The project is to be jointly managed by Bangladesh and India
• Bangladesh is to be allowed to use the pipeline to export gas to India or import it from Myanmar.

Tri-nation talks took place in January 2005 when relations between India and Myanmar were strong and Bangladesh’s interest in the project spiked due to hopes of potential financial gain.

In April 2005, Bangladesh delayed the signing of an agreement relating to the proposed Myanmar to India pipeline, citing ongoing differences with India. After negotiations with Bangladesh had stalled for several months, the other two countries decided to explore other alternatives.

Following a meeting with Myanmar Energy Minister Lun Thi, India’s Petroleum Minister Mani Shankar Aiyar said a techno-commercial group would examine the possibility of laying a pipeline which bypasses Bangladesh, as well as the option of shipping gas from Myanmar to India in the form of LNG or compressed natural gas.

However, after GAIL presented the results of a detailed feasibility report regarding transport options of gas from Myanmar to the other operators of Block A-1, it was concluded that a route bypassing Bangladesh was preferred.

The strain of an acute energy supply shortage in Bangladesh has renewed hopes that the government may finally be ready to commit to the project.