The Burmese, Indian and Bangladeshi governments have agreed in principle to co-operate on a gas pipeline and exploration project.
India's petroleum minister recently sealed a gas deal with Iran
In a statement issued by their energy ministers, the three countries said they had agreed to develop natural gas fields off the coast of Burma.
A gas pipeline from Burma to India through Bangladesh will be built.
A BBC correspondent in Dhaka says India is looking for more fuel as demand soars with its rapid economic growth.
Officials say Bangladesh could earn as much as $125m a year in transit fees and other service charges from the proposed pipeline.
Last week India struck a 25-year deal with Tehran to import 7.5m tonnes of liquefied natural gas from Iran from 2009.