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Foreign cos pressuring BD to sell gas to India

DHAKA: Bangladesh is under serious pressure from foreign companies to export gas to India.

Foreign companies, involved in gas and oil sector, ask the government to export gas. They hope that President Clinton will exert due influence on Bangladesh during his visit of March 20 and will be able to pave the way to export gas to India, the only country that is ready to import gas from Bangladesh.

Foreign companies have been lobbying for export of gas in their anxiety to get return of their investment at the earliest. They have already indicated their plans to the government contrary to the conditions of existing production-sharing contracts. They might not undertake further exploration if the government did not agree to their new proposal which also demands participation of private sector.

The present contracts stipulate that these companies would sell gas to petro-Bangla, the body that looks after oil and gas sector, for its further use. Foreign companies estimate that recovery and profit would take long time which they do not want to allow.

Even, there were pressures on the government to favour the export of gas by International Finance Corporation and such other Financing Institutions. Bangladesh favoured export of value-added gas products bringing in greater revenue along with development of various gas-based facilities. But foreign companies, anxious for quick return disfavour investment in fertiliser or power production using gas as raw material.

Sources said President Clinton had been under servere pressure to raise the issue with Bangladesh on the plea that it would encourage further foreign investment.

International Finance Corporation chief during his recent visit to Dhaka had emphasised on the point that involvement of foreign oil companies and inflow of foreign investment will not be possible if there is not decision for export of gas. Different foreign oil companies queuing for their participation in gas exploration are also mounting pressure on the government for formulating clear gas export policy.

All these indicate that the issue of gas would remain as the key issue during the visit of President Bill Clinton as he would be accompanied by a large number of industry and business people.

Although the local experts and the government favour export of gas-oriented value added products like fertilizer and electricity the foreign companies consider efforts for those areas as time consuming.

It is learnt these companies are mobilising pressure for allowing them to export gas through pipelines to India. They plan to supply gas through underground pipelines to Calcutta, Delhi and Madras. The foreign companies want to recover their investment at the earliest hour.ÑAPP