Bangladesh would gain by selling India gas -- WB

Bangladesh would gain by selling India gas -- WB

DHAKA: Bangladesh would gain more by exporting natural gas to India than by selling its neighbour fertiliser or electricity produced by the gas, the World Bank said. "The bank's assessment is that the country could easily earmark two TCF (trillion cubic feet) for exports,'' it said in a report on Wednesday. It said the target of two TCF was moderate and would still leave the reserves base equivalent to more than 30 years. "Gas exports via pipeline to India which would require the laying of a dedicated pipeline offer greater flexibility due to the diversity of usage by commercial, industrial, residential and other users," the bank said. Fertiliser and electricity exports carried commercial and political risks, the bank said.

"Preliminary analysis indicates that, among the three options, the commercial risks of fertiliser exports are high; electricity exports are fraught with political risks, not to mention the incompatibility of Indian and Bangladeshi power grids." It aid the currentproduction-sharing contract allowed exports only in the form of Liquefied Petroleum Gas. The Bangladesh government and opposition parties have opposed gas exports to India, unless there were plenty of proven reserves to meet domestic demand and an exportable surplus. The Prime Minister of Bangladesh, Sheikh Hasina, said she would rather use gas to run gas-based industries before contemplating export.