Tiptoeing around Tapi

Four nations that are part of the $10-billion TAPI gas pipeline project have signed an initial investment agreement

Four nations that are part of the $10-billion Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project have signed an initial investment agreement, which would pave the way for updating the feasibility study of the project and finalising the pipeline route in Afghanistan. The company, registered in November 2014, will have Pakistan, India and Afghanistan having an equal five per cent stake each, with Turkmenistan owning the majority 85 per cent. The project is meant to address gas shortages in South Asia with inter-connectedness increasing among the three countries of the region that are in desperate need of more cordial and peaceful relations. Pakistan’s relations with Afghanistan and India have been marred by much acrimony, with long-term stability missing. Observers believe that the gas-import project could spark the inter-dependence the three countries need to promote peace in the region.

Pakistan currently faces a shortfall of around two billion cubic feet of gas per day (bcfd), with 1.325 bcfd slated to be met by Tapi. Given the volatile history of the region, there is great scepticism over the future of the Tapi project, but there is also no doubt that much benefit is to be had from it if it goes ahead. Pakistan’s attempts to address its energy concerns have also seen it sign an LNG import agreement with Qatar, along with finalising another project with Russia to transport the fuel from Karachi to Lahore. The government has made attempts to plug the energy shortage over the past two years. However, there are several kinks to be ironed out, especially when it comes to Tapi and the Iran-Pakistan gas pipeline projects. There is still doubt over the latter project going ahead, even with sanctions on Iran being lifted, which makes it all the more necessary that the Tapi pipeline gets the green light. It remains to be seen whether the region will be willing to work for the greater good. Attempts to normalise relations have not worked for several years now and threats to peace have only increased in recent times. The Tapi project is important and all stakeholders need to treat it as such.

 

Published in The Express Tribune, March 7^th, 2016.

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