After TAPI: Pakistan and Turkmenistan negotiating another project

Published: December 15, 2015
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Will pass through Afghanistan-Iran border, help Gwadar meet its energy needs. PHOTO: AFP

Will pass through Afghanistan-Iran border, help Gwadar meet its energy needs. PHOTO: AFP

ISLAMABAD: 

After the groundbreaking of TAPI gas pipeline, Pakistan and Turkmenistan are now negotiating for a second project, which would pass through the Afghanistan-Iran border to connect with the Gwadar port.

Balochistan, long marred by insurgency and political unrest, could now potentially see a massive increase in employment.

PM inaugurates TAPI gas pipeline project in Turkmenistan

An official familiar with the development said the Interstate Gas Systems (ISGS) had submitted a concept paper to Turkmenistan around two months ago, discussing the laying of an additional gas pipeline.

The official said that work on this proposal was under way to implement the project.

He said the TAPI pipeline would be able to provide 3.2 billion cubic feet of gas per day, while any additional gas supply from Turkmenistan would be transported through another pipeline.

“The Pakistan government would set up an LNG re-gasification plant at Gwadar Port to convert this gas into LNG,” the official added.

Turkmenistan begins work on TAPI pipeline

“The proposal of a second pipeline was also discussed during the sidelines of the meeting at Ashgabat, Turkmenistan when Prime Minister Nawaz Sharif visited for the groundbreaking of TAPI project.”

Turkmenistan had already committed to 85% investment to implement the TAPI gas pipeline project. The remaining equity would be equally shared by Afghanistan, Pakistan and India.

China will also provide a concessional loan for the Gwadar LNG pipeline project.

Meanwhile, Russia, which is already importing gas from Turkmenistan, has also offered to lay a gas pipeline. Pakistan and Russia have recently signed a government-to-government deal to lay a $2-billion LNG pipeline from Karachi to Lahore.

Pakistan, Turkmenistan to give big push to TAPI project

“Pakistan has two new proposed gas pipeline projects – one from Turkmenistan and the other from Russia,” official said, adding that Prime Minister Nawaz Sharif has directed to pursue these two gas pipeline projects to meet domestic energy needs.

The cost of the Gwadar LNG pipeline project, including its terminal, and TAPI amounts to $12 billion. Pakistan would have to finance only $500 million from its own pocket to implement these two projects.

For the record

Pakistan would import 1.3 bcfd of gas through TAPI gas pipeline, whereas 600 mmcfd of LNG would be imported through the terminal at Gwadar.

Pakistan, starved for energy, would be able to bridge a huge amount of its shortfall through these two projects. It will import 1 bcfd through the Iran-Pakistan (IP) gas pipeline project.

The Gwadar Development Authority (GDA) has also placed a request for 100 mmcfd gas to meet requirement of the city.

Published in The Express Tribune, December 15th, 2015.

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Reader Comments (17)

  • Khodayi Khedmatgaar
    Dec 15, 2015 - 6:13AM

    It is all talk, what happened with IP Gas pipeline?Recommend

  • Irfan
    Dec 15, 2015 - 9:17AM

    Sound interesting project, should pursue this project we can earn transit fee and Turkmenistan would be able to export there gas to worldRecommend

  • Nadeem
    Dec 15, 2015 - 9:34AM

    When the TAPI project would be completed –in the lifetime of Nawaz Sharef or Hamza Shareef has to finish it?Recommend

  • paindu
    Dec 15, 2015 - 9:55AM

    So now Afghanistan will have keys to our energy security. When and if they desire, they will simply shut off our gas. . Recommend

  • Usman
    Dec 15, 2015 - 10:38AM

    @Nadeem:
    Will complete by 2019. I’m more optimistic about this project compared to IP as other countries are also involved!Recommend

  • Khan
    Dec 15, 2015 - 11:20AM

    Rather then getting gas from Iran our stupid government will get as from Turkmenistan & supply it to Gwadar!!

    Gwadar is already getting electricity from Iran & the gas pipeline is already built by the Iranians but our government under influence from the Saudi’s will never build their part of the gas pipeline!!Recommend

  • khurrm
    Dec 15, 2015 - 11:32AM

    @khidayi recently Iran cut off 50% gas supply to Turkey, because of shortage at home, its good IP gas was mot finalized Recommend

  • Woz ahmed
    Dec 15, 2015 - 11:33AM

    Definetly a pipe dream, will never happen.Recommend

  • Irony Man
    Dec 15, 2015 - 11:54AM

    Iran does not have reliable supply.Recommend

  • Usman
    Dec 15, 2015 - 12:22PM

    @paindu:
    No they can’t stop bcoz if they stop ours it’ll also stop India’s which they are never going to do.Recommend

  • tellmore
    Dec 15, 2015 - 3:42PM

    It will be risky to invest huge money only on Gas and depend on Turkmenistan by laying high cost pipe line infrastructure. The reason is- thorough the new technologies being developed, most of the countries are moving towards alternative energy sources like Solar, which will be cheaper on long run basis with Zero carbon foot print.

    Once the solar infrastructure is created, the generation of power is free and the maintanence costs are minimum. Thus its over cost will be a fraction of other sources where you need to buy every unit.

    Hence Pakistan should join the research on alternative sources and reduce its costs so that in can focus and spend the money saved on development.Recommend

  • Nadeem
    Dec 15, 2015 - 3:43PM

    @Usman:

    Looking the past performance of the Nawaz Govt, I am skeptical to your counting. Recommend

  • Bisma
    Dec 15, 2015 - 4:44PM

    Both are great projectsRecommend

  • AfghanPashtun
    Dec 15, 2015 - 5:51PM

    @paindu

    You made a good point but dont worry we are never going to do that but except couple of times in a week!Recommend

  • Khalid Mehmood
    Dec 15, 2015 - 8:13PM

    yes it is great project.this project very good for unemployment people cane get the jobs.Recommend

  • stevenson
    Dec 15, 2015 - 11:28PM

    @Nadeem: Finally someone is doing something to improve energy and you are complaining? 10 years of Musharraf did nothing for the country except bring terrorism. Nawaz Sharif has been here now 2 years and at least there is some light for development!Recommend

  • Musharraf
    Dec 16, 2015 - 10:58PM

    @Stevenson, Chasma Nuclear 1,2,3, kanap 1 double capacity, kabap 2, neleem cheleem upgradartion, IP and TAPI , World largest oil refinery in Gawadar , wind farms all mussaraf projects just label is change by so called Sharif ;)Recommend

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