Talks on TAPI gas pipeline project begin in India

By PPI
Published: April 26, 2011
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TAPI project envisages 1,735 km pipeline with total gas capacity of 90 million standard cubic meters per day. DESIGN: FAIZAN DAWOOD

TAPI project envisages 1,735 km pipeline with total gas capacity of 90 million standard cubic meters per day. DESIGN: FAIZAN DAWOOD

NEW DELHI: Official talks on Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline project began discussing gas sales and other details of the $7.6 billion project but are unlikely to conclude any agreement at the end of four day talks, Press trust of India PTI reported on Tuesday.

India is hosting the high level talks, which among other things, is to deliberate on a Gas Sale and Purchase Agreement (GSPA) and project structure.

“The four-day talks began Monday and will continue till April 28. An official communique is likely to be issued at end of talks on Thursday,” an official said.

Technical Working Group (TWG) on TAPI project are holding meetings on the first three days and steering the committee of to meet on April 28 which will be attended by the Oil Ministers of Turkmenistan, Afghanistan, Pakistan and India.

However, GSPA is unlikely to be finalized in these talks and the four nations may agree for another date for holding further discussions.

“GSPA was originally to be concluded by April end but it looks unlikely. The deadline is likely to be extended till July 31,” another official said.

The talks will focus on the proposed appointment of Transaction Advisor for assisting in forming a consortium which will lay and operate the pipeline. It will also raise funds for TAPI gas pipeline project after signing of GSPA.

The four countries, which had in December signed Inter-Governmental Agreement (IGA) and Gas Pipeline Framework Agreement (GPFA), have decided to jointly form a consortium for the pipeline and the consortium will be headed by an international company having similar experience.

TAPI project envisages 1,735 km pipeline with total gas capacity of 90 million standard cubic meters per day. It will run from Turkmenistan’s Yoloten-Osman gas field to Herat in Afghanistan and through southern Afghanistan province of Kandahar before entering Pakistan where it will reach Multan via Quetta before ending at Fazilka in India.

On completion, India is expected to receive 38mmscmd of gas through the pipeline. The project was initially planned to be completed by end of 2014, but the deadline has now been revised to mid 2016.

Discussions will revolve around having uniform price of gas for all three of the importing countries. As per plan, 38 million standard cubic meters per day of gas would go to India and Pakistan each while 14 mmscmd would be bought by Afghanistan.

 

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Reader Comments (8)

  • John
    Apr 26, 2011 - 7:30PM

    Sometimes we need miracles, and this project is one of them.

    Doubtful on the success given that Kandahar is a route. But 2016 is two years after NATOs scheduled end of combat operations, and hopefully all will realize the economic importance. Recommend

  • GK
    Apr 26, 2011 - 9:10PM

    True story – A friend of mine once took a flight from Delhi to Dubai. Next to him was an old man and they struck a conversation. The man asked my friend what he was working on. My firend replied that he was working on gas pipeline to India from Iran. The man smiled – he replied that 40 years ago he had been involved in a similar pitch to the then Shah of Iran ! We have a term for these projects – they are called pipe dreams !Recommend

  • Apr 26, 2011 - 9:25PM

    All the four countries will benefit from this deal. Only India is having expertise and money to execute this project but the present conditions in Afghanistan and Pakistan create more doubts about realization of this gigantic project.Recommend

  • Hedgefunder
    Apr 26, 2011 - 11:15PM

    This project is never really going to take off! Too many uncertainties, politically and economically for this baby to work!!
    We are talking about not nations here who need common understanding, but principally the region and its people! Sadly i don’t see this as Afghanistan is never going to be stable in this time frame.
    In regards to Pakistan, one has to view with caution as to what occurs next and who is in power at the time.
    In regards to Turkmeristan, we have a very delicate one party state ruling over population of just over 5 million, and the present bearer in office Berdimuhamedow, has been there since 2007, with a disastrous Human Rights record and ideal for revolution of some form !
    In regards to India, they will be happy to accept extra energy resources regardless of which party is in power and will be willing banker for this to materialise, however they also won’t be holding their breath.Recommend

  • Moiz R.
    Apr 26, 2011 - 11:40PM

    We should see if China is interested in making TAPI pipeline into TAPC.Recommend

  • Tip from Türkiye
    Apr 27, 2011 - 4:34AM

    if you really want to do a project, do it without heasitation, Terror has always a background in neither gas or oil pipelines.
    There is no terrorism, the terrorism is always sponsored by your own country and foreign countries
    Recommend

  • Ravi
    Apr 27, 2011 - 11:19AM

    This project is far from reality. Since afghanistan is a law less country and all these central asian republics like turkmenistan are just next to law less countries along with pakistan.
    India’s only problem is that if she doesn’t invest in the hybrocarbon of central asia all these countries will be comfortably playing in chinese cradle.As china is investing hugely to develop central asian countries as its cheap source of petroleum.
    This is the main reason behind undertaking this highly impractical project.
    Any ways let’s seewhats happens…………..Recommend

  • Manoj
    Apr 29, 2011 - 12:37PM

    With the advent shale gas option, India will not need to import any hydrocarbon based fuel. It will be self reliant in energy in five to ten years time.

    Hence, we do not need these pipelines. Such projects needs huge capital investment and due to security problem and inter country disputes success of such invesment is always doubtful.

    Also there was an study, which has proved that transporting gas in Gas tanker thru Sea is much cheaper and flexible then that of land transporation thru pipeline.Recommend

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