The Financial Express daily, quoting energy ministry sources, said the government felt that the war had made the situation "unfavourable" for a decision.

The issue of exporting gas to neighbouring India was expected to be placed before a meeting of Prime Minister Khaleda Zia's cabinet by mid-March after the premier received a proposal outlining prospects of limited exports of natural gas from two government-appointed committees in February.

The government, the newspaper said, would wait until the war ends before deciding on the issue.

Energy ministry officials could not be reached immediately for comment.

Natural gas exports are a sensitive issue in Bangladesh. The main opposition Awami League, led by Zia's arch-rival former prime minister Sheikh Hasina Wajed, says exports would hamper national interests as the country must first be assured of a 50-year reserve.

But the government has been under pressure from donors and investors since it assumed power in 2001 to export gas to neighbouring countries to help bring in much-needed foreign exchange, as well as help develop new gas fields.

The state-owned Petrobangla in its annual report 2002, released this week, said there are currently 12 gas fields with 53 flowing wells, including one owned by the American oil giant Unocal, in northeastern Bangladesh.

Unocal has said it is ready to invest 500 million dollars in Bangladesh as soon as the government agrees to export the gas and has proposed a 1,363-kilometre (847-mile) pipeline stretching from Bibiyana to India's western state of Gujarat, which it said would also increase access within Bangladesh.

The country had proven recoverable gas reserves of 13 trillion cubic feet, of which more than three trillion has already been extracted, according to official figures.

SPACE.WIRE