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.
Bangladesh Remains Sensitive on the Issue of Connectivity
Though the recent Indo-Bangladesh Foreign Secretary level talks held in New Delhi made significant progress on several issues, there was no forward movement on the issue of connectivity. Bangladesh remains reluctant to extend this facility to India, though bilateral relations have generally been trouble-free in the last two years.