With the discovery of substantial gas in Myanmar's Sittwe region in the Rakhine state, India was keen to acquire gas from some of the new finds in the Shwe gas field, divided in several blocks, of which A-1 and A-2 blocks were closer to India and also estimated to have the best recoverable reserves. Given the geographical location, overland pipelines transiting through Bangladesh are the most cost-effective way of getting gas from Myanmar to India. Despite its initial enthusiasm, Bangladesh backtracked from its earlier willingness to be a partner to the tripartite pipeline.
Will Bangladesh Address India’s Security Concerns?
The spate of talks and meetings between India and Bangladesh is unmatched in recent times. This pace alone sets bilateral relations apart from the five long years when the BNP-led coalition government was in power (2000-05) in Bangladesh. The recent (July 17, 2008) Foreign Secretary level talks have once again brought home the fact of how the interim government in Bangladesh without having to pander to any particular constituency has been able to constructively engage with its largest neighbour.