"It's confidential at this point of time… We have started negotiations and we'll let you know later who're joining the consortium," KB Ahmed, Managing Director of Mohona Holdings Ltd (MHL), told reporters at Hotel Sheraton.

MHL claims to be the exponent of Trans Myanmar-Bangladesh-India Gas Pipeline project in 1997 presenting the conceptual proposals to the West Bengal government and later on to the governments of Myanmar and Bangladesh.

The international consortium company will build, own and operate some 897 kms of pipeline covering 289 kms in Bangladesh segment.

The cost is estimated at US$ 974 million.

The consortium, may be based in a neutral country in the Far East, will buy gas from Myanmar and sell it to principal buyer India. In Bangladesh, it will engage GTCL, a subsidiary company of Petrobangla, for maintenance and security of the pipeline within Bangladesh territory.

Ahmed said the tri-nation energy ministers' meeting, held in Yangon on January 12-13, decided among other things that the pipeline will be built, owned and operated by an international consortium company and hoped that the three nations would soon sign an MOU to this effect.

In reply to a query, he said MHL has got the approval from both the Myanmar and the Indian authorities to buy gas from Myanmar and sell it to India. MHL now requires approval from the Bangladesh authorities to have access to the Right of Way (ROW) through the Bangladesh territory.

Ahmed said there are two route options for the pipeline through Bangladesh from the Rakhine Coast. One route proposed earlier will go through Paltwa and Aijwal in Mizoram through Tripura and enter Bangladesh at Brahmanbaria crossing the Jamuna River and pass by Jessore to enter West Bengal at Bongaon.

The second route will be to enter Bangladesh at Teknaf along the coast to Feni through Brahmanbaria where a spur-line from Tripura can be connected with the gas fields of Tripura. The crossing of Jamuna River to Jessore and Bongaon segment will remain unchanged.

An economically feasible route would be recommended in the project report to be prepared by the consortium company, he told reporters.

On economic and social benefits, Ahmed said if the pipeline is drawn through Bangladesh it would bring an investment of US$ 350-600 million for Bangladesh segment.

He said Bangladesh government might receive some US$ 100 million a year as wheeling charges depending on the volume of gas transmitted and distance covered within Bangladesh territory.

In addition to the cost of Right of Way (cost of land), GTCL may receive about US$ 24 million a year for their services.

Ahmed, however, would not comment on the conditions set by Bangladesh to India for installing the pipeline through Bangladesh territory, saying that these are the matters Dhaka and New Delhi are discussing to reach an agreement.

Mizanur Rahman Shelley, chairman of MHL, chaired the press briefing.