TAPI pipeline gas sale agreement signed

[arp2041]

The 1,680 km pipeline to become operational by 2018​

In a step that is likely to boost peace and give new shape to regional energy cooperation, India, Pakistan, Afghanistan and Turkmenistan, on Wednesday, inked the historic gas sale purchase agreement (GSPA) for the $7.6-billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, often touted as the peace pipeline.

Turkmenistan, which holds more than 4 per cent of the world's natural gas reserves, signed agreements to sell gas to India and Pakistan through the 1,680 km pipeline at the Caspian Sea resort of Avaza in Turkmenistan, according to a statement issued here. For India, the agreement was signed by GAIL (India) Chairman B. C. Tirpathi in the presence of Petroleum and Natural Gas Minister Jaipal Reddy who described the signing of the GSPA as “no ordinary event” and a triumph of multilateralism, regional cooperation and economic integration.

The TAPI pipeline will have a capacity to carry 90 million metric standard cubic metres a day (mmscmd) of gas for a 30-year period and is likely to become operational by 2018. India and Pakistan would get 38 mmscmd each, while the remaining 14 mmscmd will be supplied to Afghanistan.

Besides Mr. Reddy, the GSPA, signed by national oil companies of the four nations, was witnessed by Turkmenistan Oil Minister, B. Nedirov, Pakistan's Petroleum Minister Asim Hussain and Afghanistan's Minister of Mines Wahidullah Shahrani.

“Without a doubt, the economic benefits of the TAPI gas pipeline will be immense for our energy-starved economies. The flow of natural gas will bring in industrial and economic development in our countries,” Mr. Reddy said.

“It is our belief that the TAPI gas pipeline will transform the politics of this region.” Hopefully, the spin-off benefits of this pipeline will encourage us to emphasise trade and investment issues over contentious political issues and enable us to build trust and confidence among ourselves as neighbours and partners in progress,” he said.

Last week, the Union Cabinet gave its nod to the signing of GSPA and also approved the payment of 50 cents per million metric British thermal unit (mmBtu) as the transit fee to Pakistan and Afghanistan for the gas.

The contract price of TAPI gas is linked to a formula which contains indices based on fuel basket and other indices which are not as volatile as crude oil. The formula is similar to the ones used in international contracts. The U.S. is backing the pipeline as an alternative to the India-Pakistan-Iran (IPI) pipeline that has been stalled for quite some time now due to U.S. pressure on India and Pakistan not to go ahead with the project. The pipeline will run from the Turkmenistan gas fields to Afghanistan. It will start from the Dauletabad gas fields and run into Afghanistan alongside the highway running from Heart to Kandahar and then via Quetta and Multan in Pakistan. The final destination of the pipeline will be Fazilka near the India-Pakistan border.

The Hindu : Business / Economy : TAPI pipeline gas sale agreement signed

 

[BATMAN]

Why India was not happy with Iran pipe passing through Pakistan?

 

[arp2041]

Why India was not happy with Iran pipe passing through Pakistan?

It was dropped under pressure from US maybe even Pakistan is not able to complete the deal with the Iranians because of US pressure.

 

[Facebooks]

I think Pakistan does need So Much Gas? I don't think They have Industries to Speak off.

 

[bindaas]

Why India was not happy with Iran pipe passing through Pakistan?

Because of Balochistan where pipelines are blown regularly.

 

[hankau62]

Well the project on paper looks excellent. However its implementation will be a tough due to many parties involved and the regional geo-politics. I wish this project reality.

 

[BATMAN]

Because of Balochistan where pipelines are blown regularly.

Did some one told you that Turkmeni pipe line will not pass through Baluchistan? or you have misplaced sense of geography?

Well the project on paper looks excellent. However its implementation will be a tough due to many parties involved and the regional geo-politics. I wish this project reality.

What was wrong on paper with Iran pipeline?

 

[Raje amar]

Why India was not happy with Iran pipe passing through Pakistan?

there were various issues in the agreement, firstly the price of the gas could not be settled, secondly India wanted it to be charged at Indian receipt point where as Iran was not ready for that, and off course the US pressure for abandoning the project.

thought the TAPI pipeline is a welcome move i expect Indian to seriously consider the IPI pipe line through sea. indian must look in to the Project as core for Indian energy security.Hope our babus will look in to it seriously.

 

[Nishan_101]

I hope that Pakistan would concentrate on their latest gas dicoveries and developing technology to reach shale gas as well as the gas and oil in the sea bed. Ameen. INSHALLAH.

 

[harpoon]

Why India was not happy with Iran pipe passing through Pakistan?

Bcs we don't want our energy security to be at Pakistan's mercy. As far as TAPI is concerned, eventhough it passes through Pakistan the stakes will be much higher for Pakistan if you tries to shut it down.

 

[SamranAli]

Because of Balochistan where pipelines are blown regularly.

Tapi is gonna through afganistan too the warland.

 

[RoYaL~GuJJaR]

Good! This whole project is funded by ADB. And we have added a clause in this agreement that India will only pay for the gas we will receive on our territory via this pipeline. The day supply get blocked (for any reason) we won't pay a penny for anything whatsoever.

India needs to pay Transit fee to both Pak and Afghanistan. where as, pak needs to pay Transit fee to Afghanistan only.

I think its overall a Good project with no investment from our side and just pay the bill for gas as per supply's.

There is a good discussion regarding this issue.

 

[golmaal]

But who will ensure the safety of the Pipelines?..

 

[Nishan_101]

hope that Pakistan would concentrate on their latest gas dicoveries and developing technology to reach shale gas as well as the gas and oil in the sea bed. Ameen. INSHALLAH. Just the GoP should start R&D for that!!!

 

[The Great One]

It is not gonna be a reliable source of energy. Another major terrorist attack and people here will start demanding to close it down. BTW who's gonna ensure the security of the pipeline passing through Afghanistan and Pakistan. There are more than sufficient war-mongerers out there to ensure a perpetual cycle of blowing this pipeline up.