Current demand for natural gas in Bangladesh is not large enough to justify development of such a gas supply, said Pierce. Bangladesh can consume 91 percent of the gas it is capable of producing now but there is a lack of pipeline infrastructure to support increased supply. Pierce said the country needs to stimulate demand and generate capital for investment in the country's infrastructure. And the company views export by pipeline to India as the most profitable way to go. The government policy should be to stimulate investment.
Foreign companies are willing to invest in exploration if the policy is right.
Unocal's study so far suggests the profits would be highest from exports to India where the average energy consumption is four times as high as in Bangladesh. In comparison, using the natural gas to make fertilizer or turning it into liquefied natural gas which can be exported by tanker would not be profitable alternatives. He said gas from this field will cost about 90 cents per thousand cubic feet to produce. But it could only afford to pay 50 cents per thousand for the gas if it wanted to profitably sell either fertilizer or liquefied natural gas on the world market. However the Bangladesh government this year said it plans to follow a policy of encouraging uses of gas that add value like using it to generate electricity or make fertilizers.