A LEADING Indian energy expert has predicted a more pragmatic approach by the new Indian Minister for Petroleum and Natural Gas, Mr Murli Deora, in dealing with issues related to the proposed pipeline to carry natural gas to India from the A1 offshore field in Rakhine State via Bangladesh.

Mr Deora succeeded Mr Mani Shankar Aiyar as minister on January 30.
Mr R K Pachauri, the director-general of the New Delhi-based Energy and Resources Institute (TERI) told Myanmar Times last week that the appointment of Mr Deora could create more favourable conditions for resolving the differences between India and Bangladesh on conditions that Dhaka has sought to allow the pipeline to pass through its territory.

“Mr Deora is a very broad-minded and liberal person, and . . . he has very good diplomatic skills,” Mr Pachauri said.

The conditions Bangladesh attached included permission to use Indian territory to develop trade links with Nepal and Bhutan, as well as permission to import electricity across India from the two Himalayan kingdoms.

Bangladesh also reportedly asked for an annual US$125 million fee for allowing the pipeline to pass throughout its territory, a condition to which India has agreed.

Dr Pachauri said India needed to change its position in thrashing out differences with Bangladesh.

“We need to be liberal in every sense to allow this kind of transit reciprocal arrangement, which is a win-win situation for all countries involved,” Mr Pachauri said.

He said there is also great potential for India and Myanmar to increase cooperation in the gas sector, which will provide mutual benefits.

“Myanmar will get large amounts of revenue and we will get substantial amounts of gas,” Dr Pachauri said.

The previous Indian Minister for Petroleum and Natural Gas, Mr Aiyar, and his counterparts from Myanmar and Bangladesh agreed in principle to build the gas pipeline when they met in Yangon in January last year.

The A1 gas block is being developed by a consortium led by South Korean conglomerate Daewoo International Corporation, which holds a 60 per cent stake in the project.

The consortium also includes 20 per cent and 10 per cent shares respectively from the two Indian state-owned companies Oil and Natural Gas Corporation of India, and Gas Authority of India Limited. The remaining 10 per cent is owned by South Korea’s KOGAS.