ISLAMABAD: In a step towards materialisation of the $7.6 billion proposed Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Pakistan and Turkmenistan initiated the Gas Sales and Purchase Agreement (GSPA) on Monday, which is likely to operationalise the multi-nation project by 2016.
The two countries signed a total of five agreements and memoranda of understanding (MoUs) at the Prime Minister’s House on Monday.
Visiting Turkmenistan President Gurbanguly Berdimuhamedow, who earlier held a meeting with President Asif Ali Zardari, witnessed the agreements’ signing ceremony along with Prime Minister Yousaf Raza Gilani.
GSPA is a follow-up of the “inter-governmental agreement” (IGA) signed by President Zardari, Afghan President Hamid Karzai, President Berdimuhamedov and Indian Petroleum Minister Murli Deora in the capital of Turkmenistan, Ashgabat, on December 11, last year.
The agreement on gas sales purchase relating to the TAPI gas pipeline project was signed by Managing Director of Inter-State Gas System Mubeen Saulat and Chairman of Turkmenistan Gas Trade Concern Amanali Hanalyev.
What is the TAPI gas pipeline project?
Under the proposed project, the 1,680 kilometre-long gas pipeline, backed by the Asian Development Bank, will bring 3.2 billion cubic feet of natural gas per day (bcfd) from Turkmenistan’s gas fields to Multan and end at the northwestern Indian town of Fazilka.
Under the agreement, Afghanistan’s share will be 500 million cubic feet per day (mmcfd), Pakistan’s share will be 1,325 mmcfd and India’s 1,325 mmcfd.
The demand for natural gas in Pakistan has increased by almost 10 per cent annually from 2000-01 to 2007-08, reaching around 3,774 mmcfd, against the total production of 3,200 mmcfd.
According to the petroleum ministry, the demand in 2008-09 soared to 4,731 mmcfd cubic while production was 4,528 mmcfd cubic, indicating a shortfall of 203 mmcfd.
The TAPI project was initially designed to provide Turkmen gas to Pakistan through Afghanistan in an agreement signed in Islamabad in May 2002, and was known as the Turkmenistan-Afghanistan-Pakistan pipeline project. India was invited to join in, in April 2008.
Pakistan’s cabinet gave approval to the Gas Pipeline Framework Agreement (GPFA) for the TAPI gas pipeline project in its meeting on October 27, 2010.
According to the initial plan, the gas pipeline was to run alongside the Herat-Kandahar Highway in Afghanistan and pass through Chaman, Zhob, DG Khan and Multan in Pakistan.
Turkmenistan has the fourth largest proven gas reserves in the world.
Zardari- Berdimuhamedov meeting
During the meeting between President Zardari and President Berdimuhamedov, the two sides agreed to start direct air-links. Briefing the media, Presidential Spokesperson Farhatullah Babar said that President Zardari expressed satisfaction over the current progress of the TAPI gas pipeline project and called for ‘early realisation’ of the project.
Babar added that the president also proposed that the two countries may enter into a currency swap agreement, preferential tariff arrangement and a free trade agreement to further enhance bilateral trade and investment ties.
The other four agreements and MoUs signed by the two sides were related to cooperation between the countries’ foreign ministries, agreement on cooperation between the Associated Press of Pakistan (APP) and the Turkmen News State Service, an MoU on cooperation between Pakistan’s Ministry of commerce and Ministry of Trade and Foreign Economic Relations of Turkmenistan and an MoU on cultural cooperation.
According to the PM House, during his meeting with Gilani, the Turkmen president said that his country was ready to export 1,000 MW of electricity to Pakistan, as well as gas from a newly discovered gas field, which shares geographical proximity with Pakistan.
Published in The Express Tribune, November 15th, 2011.
COMMENTS (15)
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@ab: @@ ahmed: Dears all if there is pakistan and Iran in the world there will be no peace in Afghanistan both countries assumed they are a muslims countries but their brutal and selfish policy towards afghanistan is worsen than ussr and america or israil
may Allah give them hidayat to deal as a human being and muslim
@Ahmed: Ahmed my friend please do not blame all Pakistani nation. There is always good people and bad people in all Nations. After 911 incident in which no Pakistani involved and before 911 there was nothing in Pakistan in terms of Terrorism or Suicide Bombing. Our region was specially focused in spreading terrorism and also please note that there is huge population about 160 million and Afghan refugees about 2 million still living in Pakistan. Our enemies have specially targeted our poor & illiterate people and used them in terrorism activates. Turkmenistan has totally 5 or 6 million population. Imagine Ahmed about 160 million, how to control and fulfill their needs! Now Alhamdulillah in recent 6,7 months we see improvements. We condemn all type of terrorism. I agree with you that some of Pakistanis were involved in such activities. I remember also there were some Turkmen, Uzbek & Tajik Terrorist killed by Pakistani forces in our border region near Afghanistan. These people including our some people were went in wrong hand and made our nation ashamed. But you cannot say all people that they are terrorist because of any individual act. We are still in the phase of war against terrorism and fighting against terrorism, more than 30,000 innocent people have been killed after 911. I hope in coming days peace will win. So, Ahmed do not hate us any more we are also peace loving nation and want to live peacefully with all Nations in this beautiful world. Thank you.
Both pipelines are being negotiated. The projected growth in demand will have to be met by both projects AND MORE. Once the current demand is met at a reasonable price the projected growth in demand will be exponential.
I have a friend from Turkmenistan and there is no negative perspective against Pakistan there. Cmon we helped them getting their independence from USSR.
Hope all this goes for the betterment of Pakistan!
@Noman Ahsan Malik: sorry but we Turkmenistanians hate pakistanies.bcoz of these pakistanies every muslim is treated like a terrorist
Can you imagine a pipeline running through war torn Afghanistan? This pipeline will never be built. Pakistan is just playing along to put pressure on Iran to lower it's tariffs for the Iran Pakistan gas pipeline. It's actually a very clever strategy.
I just wanted to know what happened to Iran-Pakistan Gas pipeline deal? Are we backing out from the deal? If so then what are the genuine reasons? Please only learned people should respond. I'm curious on Iran-Pakistan deal. I believe it would help Pakistan as well in terms of relationship with Iran.
If Pakistan's arms are being twisted hard then we need to see what the motive is behind? Perhaps this is the indication that energy corridor is being planned to occupy by someone outside this area and they do not want Pakistan or India to get the share even if it is paid.
Hillary visit imminent to sabotage this. Brace yourself Pakistanis for false promises from US.
We should always bridge our relations with everyone who is willing to do the same back, especially nations close to us. Turkmenistan-Pakistan zindabad!
The Baloch will ensure this pipeline won't stretch across their homeland.
Why are we being pressurized by an outsider living thousands of miles away to do this deal rather than Iran pipeline deal which by the way is more suitable to Pakistan.
Don't do politics, if Iran gives cheaper gas then we should take from them. Put National Intrests first instead of succumbing to US pressure.
100 times yes to TAPI ! Regards, Rehan
I lived in Turkmenistan almost 8 years. They are energy riched, cultured and loving Nation. They respect Pakistanis and they are very close to Pakistani culture. Just need to work with them to establish good business and trade relations. It wll be great if we could make road and rail link alongwith the gas pipeline. It will help secure this line as well.
I will request my govt. to focus on regional relations with neighboring countries.
Noman Ahsan Malik Abu Dhabi