DHAKA, Aug 6: India reopened talks with Bangladesh on Saturday over a proposed pipeline that would allow the energy-hungry country to import gas from Myanmar, with indications that both sides had reached an agreement.

India had said earlier it was considering bypassing Bangladesh and importing gas directly from Myanmar by ship or through a pipeline that did not pass through the neighbouring country.

It said Dhaka had sought trade concessions from New Delhi in return for letting the pipeline run through it territory, something which India objected to as outside the ambit of a tripartite agreement.

But following talks in Dhaka between Indian Foreign Minister Natwar Singh and Bangladesh’s Finance Minister Saifur Rahman, the Indian minister said he had received an assurance that Dhaka would participate.

“Yes, without the participation of Bangladesh, how can it take off,” Natwar Singh told reporters when he was asked whether Dhaka had assured him of joining the billion-dollar project.

In January the three countries had agreed in principle to cooperate in gas exploration and an overland pipeline project that would send fuel to India.

India’s Oil Minister Mani Shankar Aiyar said last month that a panel would examine the possibility of direct gas imports from Myanmar by ship or through a pipeline bypassing Bangladesh.

However, he added that New Delhi would try to resolve the matter with Dhaka as the shortest pipeline route was through Bangladesh. The earlier proposal was that the pipeline would start in Myanmar and pass through Bangladesh before connecting to Kolkata.

Finance Minister Saifur Rahman, the second most powerful man in the Bangladesh government, told reporters after the meeting that Dhaka had agreed ‘in principle’ to join the pipeline, although trade concession issues had still to be sorted out.

“In principle, we have said yes, it is possible. But there are other issues involved with it. We have to sort out these issues,” Mr Rahman told reporters, adding that the foreign ministry would work on the issues.

The project is expected to yield 600 million dollars in investment for Bangladesh, besides annual charges and financial benefits to its energy firms.

Bangladesh has proven recoverable gas reserves of 1.2 trillion cubic metres, of which almost one-fourth has already been extracted, according to official figures. Current gas reserves are expected to last until 2020.

Dhaka is being urged by the United States and other major donor countries to export gas as it would bring much-needed income to the country.

However, the proposal has been opposed by some political parties which say Bangladesh does not have enough gas to export.—AFP