Not a pipe dream

For India, in urgent search of sustainable energy reserves, the deal could not have come at a more opportune time. Although it has recently signed a multi-billion LNG deal with Iran, it will be a while before this gets translated into actual supplies. Meanwhile, according to projections, India8217;s gas consumption is expected to rise to three times its present level by 2009. The geography and geo-politics of the area had reduced its options in the east considerably. For one, India could not transport gas from Tripura to Kolkata in the most efficient way possible and therefore had to cap production; for another, it could not benefit from the fact that ONGC-Videsh and Gail owned a stake in the Myanmar gas fields. Bangladesh will gain considerably, as well, in terms of transit fees and employment benefits. It will also acquire a facility to transport its own gas for domestic consumption or for export, should it choose to do so.

In the long term, this agreement could help foster more harmony in Indo-Bangla relations, becoming a model for other forms of connectivity, including surface transportation. For years, experts have been arguing for better synergy between the countries in the region so that they can benefit from their natural and human resources. The tripartite agreement is a significant step in that direction.