TAPI gas pipeline project inked.

[SEAL]

Mon Sep 20, 2010

(Reuters) - Turkmenistan, Afghanistan, Pakistan and India on Monday signed the framework of an agreement to construct a gigantic pipeline pumping natural gas to South Asia, a Pakistani official said.

The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, valued at more than $3 billion, has long been discussed by governments and energy companies but instability in Afghanistan has so far made its construction impossible.

For Pakistan, the project could help avert a growing energy crisis already causing electricity shortages that have brought heavy criticism to a government now under enormous pressure from floods that have caused billions of dollars in damages.

Turkmenistan, holder of the world's fourth-largest natural gas reserves, is keen to revive plans to build the TAPI pipeline through Afghanistan to the markets of Pakistan and India.

The former Soviet state is looking to diversify energy sales from its traditional market, Russia, and is courting investors from the West, China and other Asian countries.

"The petroleum ministers of the four countries have initialled the Gas Pipeline Framework Agreement in Ashgabad today," a Pakistani Petroleum Ministry spokesman told Reuters.

SALES AGREEMENT

In March, Pakistan signed a deal with Iran paving the way for construction of a much-delayed $7.6 billion pipeline pumping Iranian natural gas to Pakistan.

The United States has tried to discourage India and Pakistan from any deal with Iran because of Tehran's suspected ambitions to build nuclear weapons. Iran denies any such ambitions.

The Petroleum Ministry spokesman said the final TAPI agreement would be signed in the next meeting of the four countries after the formal approval of their governments.

The ministers also initialled a gas sales and purchase agreement, the final version of which will be signed in December.

The planned pipeline would have initial capacity for 33 billion cubic metres a year and would run for nearly 2,000 km (1,250 miles), including 735 km across Afghanistan and another 800 km through Pakistan.

Turkmenistan has previously estimated the cost of the project at $3.3 billion. Natural gas to fill the pipeline could be drawn from the massive South Iolotan deposit, currently under development, and the existing Dovletabad field.

TAPI gas pipeline project inked - Pakistan official | Reuters

 

[SEAL]

 

[TaimiKhan]

This will again fail, reason being the "I" in the TAPI.

Better make it only TAP, just like the IPI was reduced to IP pipeline.

Bring in either China, or keep it to Pakistan.

 

[Awesome]

Pakistan should've objected to bringing in India. India will is only interested in doing tamashay, take it to China instead.

 

[karan.1970]

what does the shaded part in Pakistan represent?

 

[karan.1970]

This will again fail, reason being the "I" in the TAPI.

Better make it only TAP, just like the IPI was reduced to IP pipeline.

Bring in either China, or keep it to Pakistan.

Out of the 4, India is the prime consumer for the gas. Unless you include China as you suggested, the pipeline without I wont make commercial sense..

 

[TaimiKhan]

what does the shaded part in Pakistan represent?

The area from where both the pipelines are gonna pass.

 

[Skeptic]

The area from where both the pipelines are gonna pass.

But Multan is excluded - While both pass that region as well.

 

[TaimiKhan]

Out of the 4, India is the prime consumer for the gas. Unless you include China as you suggested, the pipeline without I wont make commercial sense..

Are you sure ???

These pipelines don't just serve consumer purposes, they have commercial purposes too.

So once a pipeline gets into a country and if its affordable, then it attracts investment too, which can make it profitable and useful.

The "I" is not the only thing which can me it profitable.

 

[TaimiKhan]

But Multan is excluded - While both pass that region as well.

Multan would be the area from where they will go to India, if India is not in, it won't be covered.

And the source of this picture has a very lengthy article, which is discussing a lot of things, and there with this picture, is the discussion of Balouchistan, that is why it has been shaded.

" Given China’s long-term plans to tap Iranian supplies, and send them east via pipelines, or overseas (perhaps from the Chinese-built Pakistani port of Gwadar), the prospect is a battle for supremacy, most likely waged over the fractious Pakistani province of Balochistan. Everyone’s multiple pipeline plans aren’t compatible, and they mostly intersect there. Both the TAPI and IPI projects are flawed, but both Pakistan and India need gas. Delhi’s no more likely to trust Washington to guarantee its energy security than Islamabad. But the U.S. needs to win, which could spell balkanization for Pakistanis along the way. In the past, the stumbling block to a deal with the Taliban was transit fees. These days it’s more a general desire to ensure that whoever’s in charge does its bidding. “Washington wouldn’t give a damn about sharia law as long as the US could control pipelines crossing Afghanistan and Balochistan,” says Pepe Escobar, the provocative Asia Times columnist. "

 

[jha]

TAPI is a reality now only because of I..

 

[karan.1970]

Are you sure ???

These pipelines don't just serve consumer purposes, they have commercial purposes too.

So once a pipeline gets into a country and if its affordable, then it attracts investment too, which can make it profitable and useful.

The "I" is not the only thing which can me it profitable.

Pretty much. Do compare the demand of the product in Pakistan vs India. From a seller's perspective, if they can spread the fixed cost over a larger base, with incremental cost, it makes commercial sense. Thats why in my view, Turkmenistan will look for India or China as a prime consumer to offset the cost of going thru Afghanistan

 

[TaimiKhan]

TAPI is a reality now only because of I..

Well, lets see, as either the "I" will be out, or the "P", as being both together won't work.

We saw that in the past.

 

[TaimiKhan]

Pretty much. Do compare the demand of the product in Pakistan vs India. From a seller's perspective, if they can spread the fixed cost over a larger base, with incremental cost, it makes commercial sense. Thats why in my view, Turkmenistan will look for India or China as a prime consumer to offset the cost of going thru Afghanistan

Well then they are wasting time and money, as said above, both P & I together won't make it successful, either take P out or I out.

 

[karan.1970]

Multan would be the area from where they will go to India, if India is not in, it won't be covered.

And the source of this picture has a very lengthy article, which is discussing a lot of things, and there with this picture, is the discussion of Balouchistan, that is why it has been shaded.

" Given China’s long-term plans to tap Iranian supplies, and send them east via pipelines, or overseas (perhaps from the Chinese-built Pakistani port of Gwadar), the prospect is a battle for supremacy, most likely waged over the fractious Pakistani province of Balochistan. Everyone’s multiple pipeline plans aren’t compatible, and they mostly intersect there. Both the TAPI and IPI projects are flawed, but both Pakistan and India need gas. Delhi’s no more likely to trust Washington to guarantee its energy security than Islamabad. But the U.S. needs to win, which could spell balkanization for Pakistanis along the way. In the past, the stumbling block to a deal with the Taliban was transit fees. These days it’s more a general desire to ensure that whoever’s in charge does its bidding. “Washington wouldn’t give a damn about sharia law as long as the US could control pipelines crossing Afghanistan and Balochistan,” says Pepe Escobar, the provocative Asia Times columnist. "

checked the map. that shaded area is the province of Balochistan.. should have done this before asking... sorry..