Turkmenistan officials due in Afghanistan as Taliban back TAPI gas pipeline - Reuters

[farok84]

Main problem with the pipeline for India was terms of payment. India wants to pay only for the gas that it receives at its end, thus insulating itself from the risk in transit countries. TAPI will only work if other countries agree with the idea.

Hi,

Can you please expand on it?

India was supposed to pay for only its due of gas (~1350mmcfd/ 14bcm/y) plus the transit fee for that portion to Afghanistan and Pakistan (~$0.45/mmbtu to each country), the same fee was to be paid by Pakistan to Afghanistan for its share (~1350mmcfd/ 14bcm/y). India was always paying for it's share of gas. Or were you referring to a common Contract Price (for Afghanistan, Pakistan and India)?

Also, as per shareholders agreement signed in December 2015, both India and Pakistan holds 5% of TAPI Pipeline Company (TPCL) with majority shares (85%) with Türkmengaz. India was only supposed to contribute 5% or $500million against which it (GAIL) should be receiving its share of revenues (5%) generated from sales of 33bcm/y gas to Afghanistan (5bcm/y), Pakistan (14bcm/y) and India (14bcm/y). I am not aware, whether India has renegotiated or proposed amending this shareholders agreement after signage in 2015. If they have, kindly correct myself.

 

[FuturePAF]

Main problem with the pipeline for India was terms of payment. India wants to pay only for the gas that it receives at its end, thus insulating itself from the risk in transit countries. TAPI will only work if other countries agree with the idea.

It’s fine, TAP can be TAP now, and the pipeline can end in Karachi. If India wants to buy from there it’s fine, if not, so be it.

Pakistan benefits immensely by having a vital gas pipeline go through Pakistani territory and into India. This would make India dependent on Pakistan.

Ideally yes, but if they don’t want to join, it shouldn’t hold up our effort to built the pipeline. We can build the pipeline to Karachi via the original path (so that down the line it can be extended to India as a potential carrot if they change their tune; if Russia gets sanctioned like Iran, fuel will get more expensive and India maybe more willing to buy to economical prices to maintain their economic growth)

 

[Shehryar Ashraf]

Pakistan benefits immensely by having a vital gas pipeline go through Pakistani territory and into India. This would make India dependent on Pakistan.

It makes Pakistan financially dependent (to an extent) on India purchasing gas through the pipeline, so the dependency works both ways.
Better off building the Pipeline till wagah and stopping it there.
force them to mend their ways if they ever want to get access to cheap gas.
the first step would be to change the name to TAP to assert dominance.

 

[That Guy]

It makes Pakistan financially dependent (to an extent) on India purchasing gas through the pipeline, so the dependency works both ways.
Better off building the Pipeline till wagah and stopping it there.
force them to mend their ways if they ever want to get access to cheap gas.
the first step would be to change the name to TAP to assert dominance.

If India doesn't pay, Pakistan shuts its side of the pipeline.

Simple.

 

[Wood]

Hi,

Can you please expand on it?

India was supposed to pay for only its due of gas (~1350mmcfd/ 14bcm/y) plus the transit fee for that portion to Afghanistan and Pakistan (~$0.45/mmbtu to each country), the same fee was to be paid by Pakistan to Afghanistan for its share (~1350mmcfd/ 14bcm/y). India was always paying for it's share of gas. Or were you referring to a common Contract Price (for Afghanistan, Pakistan and India)?

Also, as per shareholders agreement signed in December 2015, both India and Pakistan holds 5% of TAPI Pipeline Company (TPCL) with majority shares (85%) with Türkmengaz. India was only supposed to contribute 5% or $500million against which it (GAIL) should be receiving its share of revenues (5%) generated from sales of 33bcm/y gas to Afghanistan (5bcm/y), Pakistan (14bcm/y) and India (14bcm/y). I am not aware, whether India has renegotiated or proposed amending this shareholders agreement after signage in 2015. If they have, kindly correct myself.

You are more informed in this topic than I. I just remembered reading something long ago about India's problem with price negotiation.

It’s fine, TAP can be TAP now, and the pipeline can end in Karachi. If India wants to buy from there it’s fine, if not, so be it.

If Pakistan finds the proposal to be economically viable, then I'm sure it will not bother with including India

 

[Shehryar Ashraf]

If India doesn't pay, Pakistan shuts its side of the pipeline.

Simple.

they helped break our country in two.
they arm militant groups to destabilize the country.
our blood is not for sale.
would you sell your mother for a few silver coins?

Rather have no economic ties with them, i dont care how profitable it would be with or without them.

this pipeline has strategic value as it is source of gas that cannot be navally blockaded in times of war.

 

[That Guy]

they helped break our country in two.
they arm militant groups to destabilize the country.
our blood is not for sale.
would you sell your mother for a few silver coins?

Rather have no economic ties with them, i dont care how profitable it would be with or without them.

this pipeline has strategic value as it is source of gas that cannot be navally blockaded in times of war.

Ignoring your clear insult...

It's not about profit, its about making sure that in case of conflict, we can cut off a vital gas supply of India. The longer India uses TAPI, the more dependent it will be, and more leverage Pakistan will have.

Remove your emotions and think logically.