Gas pipeline: Bangladesh wants in on TAPI, says Abbasi

Work on Pakistan segment likely to start in early 2017

ISLAMABAD: Federal Petroleum and Natural Resources Minister Shahid Khaqan Abbasi has revealed that Bangladesh has also expressed its willingness to join the Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project.

Tapi, which will be completed in December 2019, will bring 3.2 billion cubic feet of gas per day to the energy-starved countries.

Speaking at a press conference on Tuesday, Abbasi said the agreement on starting work on the Tapi pipeline was a significant achievement as the project had been lingering since 1990, adding in the past two and a half years the partner-countries had worked hard to kick-start the project.

All partners were eager to initiate the project, but faced serious challenges and now Turkmenistan has taken the decision to become the lead financier.

Replying to a question, the minister said work on Pakistan segment of the pipeline could start at the beginning of 2017. The gas price at the Afghan border will be equal to around 80% of the Brent crude price and after adding tolling fee of the pipeline it will cost in the range of $5.7-6.2 per million British thermal units.

“Turkmenistan will invest an estimated $25 billion in developing gas fields and laying the 1,680km pipeline. Other partner-countries will have 5% share each in building the pipeline,” Abbasi said.

Tapi Pipeline Company Limited is responsible for laying the 56-inch diameter pipeline from Gylkynish and adjacent gas fields in Turkmenistan, which will pass through Herat, Kandahar, Chaman, Zhob, DG Khan, Multan and reach the Pakistan-India border.

Pakistan has been selected as chairman of the company board with 5% shareholding like India and Afghanistan.

Of the total volume, Afghanistan will receive 500 million cubic feet per day (mmcfd) and Pakistan and India will each get 1,325 mmcfd. However, the minister added, Pakistan or India could purchase more gas if Afghanistan wanted to sell its share.

Abbasi declared that the gas would be the cheapest and said Bangladesh had expressed interest in being part of the project, but it would be an arrangement between Delhi and Kabul.

Replying to a question, the minister said every partner-country would be responsible for security of the pipeline.

“Pakistan will receive $250 million in transit fee from India and Afghanistan will also get the same amount from Pakistan,” he said. These countries will bear the security cost from the royalty or transit fee.

At present, negotiations are under way on a tripartite transit agreement among Afghanistan, Pakistan and India.

Published in The Express Tribune, December 16^th, 2015.

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