Narinjara News

Dhaka, May 26


Bangladeshi Company Begins International Consortium Negotiations for a Tri-nation Gas Pipeline


A Bangladeshi private company held a press briefing in a hotel in Dhaka on 23  May regarding their negotiations with an international consortium about a tri-nation (Burma, Bangladesh, India) gas pipeline.

The press briefing was held under the Mohona Holdings Ltd, a private company of
Bangladesh.  There were several leaders of the company, including Dr Mizanur Rahman Shelly, in attendance at the ceremony.

The company is now negotiating with potential investors from private and public sectors and financial institutes to set up an international consortium for financing the tri-nation gas pipeline.


The government of Bangladesh, however, has yet to give any signal to go ahead with the project, said a report.


“We have started negotiations and we will let you know later who will be joining the consortium,” AB Ahmed, Managing Director of Mohona Holdings Ltd told reporters during the press briefing at the Dhaka Sheraton hotel.

Though the Bangladeshi government has not yet given the go ahead for the project, the company has already started negotiations for its financial package with some Indian and Korean firms.

AB Ahmad said the gas pipeline project will be funded by an international consortium which will build and operate some 897 km of pipeline, 289 km of which will be in Bangladesh.


The construction cost is estimated at US$ 974 million but the total project cost including

the gas flow to the pipeline will amount to about US$1.3 billion. The Bangladeshi commitment  will required an investment of US$ 350-600 million, the Managing Director



He also said that the pipeline will create US$ 600 million of revenue, and that the country will receive another US$ 100 million annually as wheeling and US$24 million in service charges for the payment for gas transmission. 

The gas pipeline may run from the Burmese western state of Arakan to Mezoram and  the Tripura state of
India.  Following, it will enter Bangladesh at Brahmanbaria and continue to the Kolkatta region of India.

 “It may also come through Teknaf, opposite the Maungdaw side of Burma, and run

along the coast of Feni town to Brahmanbaria. It will cross the Jamuna river and pass through Jessore to enter West Bengal at Bongaon,” He added. # 



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