US had invited Pakistan to participate in talks on the TAPI pipeline in India on August 22, but Islamabad refused to attend apparently because of tension with New Delhi, leading to postponement of the dialogue. DESIGN: MUNIRA ABBAS
The repercussions of the boiling tension between Pakistan and India on the Line of Control are being felt in all spheres of life as talks on a crucial transnational gas pipeline in New Delhi have been postponed, apparently dealing a blow to the United States.
The US has been pressing Pakistan to go ahead with the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and shelve the Iran-Pakistan pipeline project because of a standoff with Tehran over its alleged nuclear programme.
According to sources, the US had invited Pakistan to participate in talks on the TAPI pipeline in India on August 22, but Islamabad refused to attend apparently because of tension with New Delhi, leading to postponement of the dialogue.
“A representative of the US State Department and Chevron officials, who were visiting India to discuss issues pertaining to the pipeline, had asked Pakistan to join them, but Pakistan’s refusal caused the talks to be put off,” a source familiar with the development said.
US firm Chevron is interested in financing the pipeline, which will pass through war-torn Afghanistan, and is seeking a stake in developing gas fields in Turkmenistan.
Sources revealed that the Joint Working Group on the project met in Dubai on August 18-19 and a follow-up meeting would be held in New Delhi some time later.
The countries participating in the project have agreed to hire the Asian Development Bank (ADB) as transaction adviser to raise funds to meet the escalating cost, estimated to exceed $10 billion compared to earlier forecast of $7.5 billion because of delay in kicking off work.
In a fresh development, Afghanistan has signed a gas sale and purchase agreement to become part of the project, abandoned earlier by Kabul, saying it was only interested in transition fee. These developments took place in Ashgabat, Turkmenistan in the first week of July.
The participating countries have also negotiated the transaction adviser fee for the ADB. Earlier, the bank sought $100 million in fee and $50,000 per month as retaining cost of the project. On the insistence of participating countries, which asked the ADB to bring the fee down to $30 million, the bank agreed on $50 million.
“This issue is still to be settled with the ADB, which will be hired as transaction adviser to generate the entire cost of the project,” an official said, adding the four countries had also agreed to contribute $5 million as token money to the TAPI Company.
Afghanistan had earlier refused to contribute funds, saying it did not need the gas to be supplied by the pipeline. Now that Kabul has signed the gas sale and purchase agreement with Turkmenistan for import of 500 million cubic feet per day (mmcfd), it will also contribute $5 million, according to sources.
During July talks, the issue of security in Afghanistan also came under discussion. Kabul assured the meeting that it would protect the pipeline despite a volatile security situation.
Under the original plan, Pakistan will get 1.365 billion cubic feet of gas per day (bcfd) from Turkmenistan, India will also receive the same 1.365 bcfd and Afghanistan will get 0.5 bcfd.
Turkmenistan will supply gas through a 1,800km pipeline that will reach India after passing through Afghanistan and Pakistan.
Published in The Express Tribune, August 23rd 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (67)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
@ ET Mods
"Yup, keep insulting your own countrymen using my name. I don’t make ridiculous or exaggerated claims, or even insult anyone the way you did in that comment impersonating me."
The above comment is not mine! Kindly remove it. Some imposter is using my moniker.
Thanks!
Allahu Akbar, all blessings to Pakistani government and people for diverting this disaster. Full speed ahead to Iran-Pakistan-China pipeline.
@Ali Tanoli: Tapi is impossible . And the reason is that the US Oil Major "Chevron", seemingly, does have a "Concession" to "Explore and Produce" Natural Gas in Turkmenistan but the main Parties who have a "Flying Start" over Chevron are 1. the Russians - who earn very substantial "Transit Dues" from European Consuming Nations and 2. The Chinese - in this case the less said, the better! . So The Russians and the Chinese have Turkmenistan Exportable Natural Gas all "Stitched & Tied Up". . In the unlikely case Chevron ever being able to export its "Produced" Natural Gas in Turkmenistan then the the Pipe Line will be Built - 99% - by Gazprom and Gazprom, Ladies and Gentlemen is a Russian Controlled Oil Services Provider! . GOOD LUCK TAPI!! You need it!!! . Cheers
"@ all Pakistanis: I know that your country has a lot of deluded people but please visit the world wide web and get your facts rights. Only the first comment was mine. All others were by imposters."
Yup, keep insulting your own countrymen using my name. I don't make ridiculous or exaggerated claims, or even insult anyone the way you did in that comment impersonating me.
@Nauman: @Alann…..you are an Indian…..why not use a Indian name? You are not fooling anyone. . Unlike Pakistan India has a Very Visible, Vociferous and Voluble Indian Christian "Minority" Including the Most Powerful Person in India - Sonia Maino Gandhi - A Roman Catholic. . Cheers
Even though I feel TAPI was never going to work and India would not really bother to give Pakistan leverage by sourcing energy through Pakistan, I'll still play along.
India should not hold any talks on Indus Water Treaty and address any concerns, until Pakistan ends all Terror and jails all anti-India militants. :) lol
Hey, bright political people, look at the US/Canada relationship - and learn something from it....
@RAj I agreed but question is american security for supply is short term too u know how they used any thing for there own agenda.
@B Tapi is impossible.
I don't know why some Indian trolls visit Pakistani websites and bash Pakistan and Pakistanis. There are good people and bad people everywhere and you just cannot generalize. Go to any any Indian website - you'll hardly see a Pakistani making deluded comments. I mean seriously get a life. Is this what you do all day long? Scan every bit of news article on Pakistan and then come to Pakistan and yell how Pakistanis are obsessed with India. Trust me, people hardly bring up India now. We are no Europe or Middle East. We have enough to keep us busy - power shortages, corruption, terrorism..... Get a life honestly! And honestly, there are so many irrational and nonsensical comments by some trolls.
@ all Pakistanis: I know that your country has a lot of deluded people but please visit the world wide web and get your facts rights. Only the first comment was mine. All others were by imposters.
TAPI gas project is already rejected by India as it passes through Afghanistan and Pakistan and the current scenario and the future possibilities do not seem encouraging for peace. The risk of sabotaging the pipe line by the extremists and other vested interest is quite high and the risk mitigation factor is very very low. However American corporate sector ( who have developed the Turkmenistan gas fields ) are keen to sell their products and using the US pressure on India and Pakistan both. They are trying to protect their interest. For Pakistan Iran Pakistan gas project is better , safer and cheaper but sanction on Iran is the main hurdle and Pakistan has to weigh many pros and cons to ignore USA / West to proceed on IP gas pipelines. They are signalling that energy is highly necessary and USA should allow them to proceed with IP gas projects instead of TAPI . many other countries including India have been permitted to buy oil from Iran despite the economic sanction . The refusal to discuss TAPI with India is the part of this strategy.
So far India is concerned she also needs gas for her energy requirement but can afford to wait and or explore other safe and steady sources But Iran Pakistan gas pipeline if constructed with additional provision to pump more gas ( for future requirement of Pakistan and or India) it will be better for India and she may be willing to bear the proportionate infrastructure cost too on reimbursement basis once it stabilizes.
@Raj - USA: Whatever the case may be, we don't want any handouts from our enemy Pakistan.
@Asghar Hassan: As far as I am concern, the newspaper headlines reads: Express Tribune with the International Herald Tribune.
@Ali Tanoli: I too agree with your comment with a caveat. What is the guarantee that if tensions arises between us that this pipeline will still be flowing. Remember Salala? What did Pakistan do?
ET be careful. I had the same problem with Times of India where my name was used to write all kinds of bad words. One way to overcome this will be to reserve the name to the email ids. So unless Ali Taloni, gp65, or Modified etc. comments come from the respective email Ids they should not be printed.
@Ali Tanoli: "Best way to get gas was IPI but i think india dont need gas ……………."
There is a big question mark if the IP pipeline will ever materialize as nothing can happen as long as there is no peace in Baluchistan. TAPI is even worse. It needs peace in Afghanistan and also Baluchistan.
The best option for India is to build its own under-sea pipeline from Oman or Qatar. Years ago, when India was considering this it was estimated to cost around $7 billion. Even if the cost has doubled now, it would still be better than any pipeline that passes through Pakistan. Other alternative India was considering is to liquify the gas in Iran and bring it by ocean tankers to India. Pakistan is also trying to get LNG form Qatar by ocean tankers.
BTW, I read some reports few months ago that India is negotiating to get LNG from US at around $6.5 /MMBTU. Not sure if it includes transport costs. I also read that Mrs. Clinton offered the same price to Pakistan also. However the deliveries are to commence after 2 - 3 years only.
If India and China can work together, they can bring gas or oil from the gulf kingdoms through underwater pipelines and transport it across India to Myanmar where it can connect to the pipelines that China already has to transport it to China.
The geological formation in many parts of India is similar to the geological formation for shale gas in USA and India is hopeful that it will have sufficient energy for its own.
Afghans got Afghanistan from Russia - Indians got Kashmir and Siachin as it was - Our NATO friends got their revenge fulfilled - All through Pakistan - Pakistan got the dead bodies of its soldiers and civilians - But also got refurbished assets viz. TTP, LEJ, LET, JDU. Al Qaeda.
Don't the Indian gentlemen have anything better to do than post comments on a Pakistani website. Please go post on your own news sites and mind your own business. I wish we would finish all relations with India and try to focus on fixing our problems ourselves. The IP Pipeline should have gone through and TAPI should be scrapped as it would only be used against Pakistan one way or the other by the Americans when the time came. But sadly we have beggars and pathetic idiots in power so we shouldn't expect anything good from them.
@Rabbani: apology for what? Or we should thank you for killing our 5 soldiers.What a joke.
Asif Butt: @Alann: “India does not need any gas. It merely wanted to help Pakistan and Afghanistan. “ Joke of the century. Listen this is no Kings court neither are you the jester. So stop all the ridiculing will u."
That comment was not made by me, but rather by some insane guy from your own country who also posted a fake comment on Mumbai rape article aswell using my name. The 'sarcastic' comment at the top and the one where I replied to you in bold are by me. Meanwhile, my comments/replies were blocked for few hours and have just been released a few minutes ago. ET please publish this clarification. Sigh..gotta hate those impostors who abused not just mine but also Gp65, Water Bottle and Babloo's names in the past.
@Alann' Best way to get gas was IPI but i think india dont need gas ................
@Farhan: you seem to know more about India! Relax itna tension mat leejiye! Aapki sehat ke liye theek nahi hai! As far as Gas, oil etc etc are concerned India can get it from anywhere! You don't worry!
@Alann:
Are you on weed? India doesn't need gas?
ET, stop blocking my comments and letting fake impostors comment under my name.
Please dont tell us whats good for us. Our priorities are our army soldiers that guard us on our borders. If you kill them we don't need any dialogue or trade with you. We are better off on our own to face our challenges. Now acting over here like you wanted to help us is ironic. We are all aware of your mischieves on LOC and in Balochistan. India is and will remain an enemy, no matter whatever amount of positivity is extended towards them by Pakistan. Just going through a couple of your news websites tells how much you care for Pakistan. On one hand you kill our armymen, then you create propaganda against us and then you expect we will trust you with these deals. I totally stand with Pakistani government on their stand. Some stands are about putting across the right messages and Pakistani exactly put forward the message in a peaceful way to India and international community that how much are we tired of the games by your government, your army, intelligence and media. We Pakistanis are all for peace for it does need some mutual effort, PERIOD!
India thanks you for untying our hands out of this crazy TAPI project. We will not be blamed when we fully reject it in the future.
All the folks who believe Pakistan has "lost a great business opportunity" by dropping out of TAPI, need to know that TAPI was not going to take-off in the first place, since an important transit location was Afghanistan, which is so unsafe for its own citizens, let alone a gas pipeline. And even if it could really be real(I can't fathom how?), Pakistan would be getting highly expensive gas, the cost of which would really increase taking into account the transit fees Afghanistan would charge.
It's better there is going to be no more TAPI now since, with out P, TAI wouldn't workout anyways.
Instead of letting me respond to these people, ET's blocking my comments and instead allowing an impersonator to comment under my name. Thats sad.
"India does not need any gas.[..]" is not posted by me, whereas the ones posted by me aren't even published. There's also another comment under my name on the Mumbai rape article. As for the immature Pakistani kids using names of Indian users, its time to grow up.
"India does not need any gas. It merely wanted to help Pakistan and Afghanistan. The Indian Energy and Mineral Resources Corporate Board estimates that India can self sustain itself even with the current economic growth rate of 19% for the next 30-35 years. The Indian Renewable and Biodegradable Energy Generation Board confirm they will effectively shift India’s dependence on indigenous imported Indian fuel and gas in a time frame of 20 years."
ET mods, this comment is not by me. There's also another comment by my name in another article http://tribune.com.pk/story/594151/gang-rape-of-photo-journalist-shocks-indian-financial-city-mumbai/ Please remove these comments.
@Alann: "India does not need any gas. It merely wanted to help Pakistan and Afghanistan. "
Joke of the century.
Listen this is no Kings court neither are you the jester.
So stop all the ridiculing will u.
I wish and hope that Pakistan stick to this decision and not change it. India will be saved from making this infructuos (wasteful) expenditure. Pakistan does not have the capability to protect this pipeline.
I believe that this decision is detrimental to the interest of pakistan. It was getting gas and transit fees along with assurances of cooperation in the project. Any economic project with mutual gain is good for us. It gives us less inclinations to be hostile to eachother because of financial interest.business lobbies for peace and there is a economic detterance just like a nuclear one. If we conduct business then there are less chances of a war too. I hope people got the point here. Rab rakha
Pakistan as usual is acting as if they neither have a serious energy crises, nor are likely to have any ! This whole project is flawed as its got too many issues relating to unstable and failed nations such as Pakistan and Afghanistan, for this project to work !
India does not need any gas. It merely wanted to help Pakistan and Afghanistan. The Indian Energy and Mineral Resources Corporate Board estimates that India can self sustain itself even with the current economic growth rate of 19% for the next 30-35 years. The Indian Renewable and Biodegradable Energy Generation Board confirm they will effectively shift India's dependence on indigenous imported Indian fuel and gas in a time frame of 20 years.
There is confusion because politics are being mixed with business. Business creates profits or fails. Politics creates confusion with no end. Take your pick.
@Nauman: Funnily enough we in India have Christians living with us as well, so Alan might be his real name.Please stop being so narrow minded.
It is really funny to see Pakistanis appreciating their govt for refusing to take part in TAPI pipeline talks. First of all, TAPI is a dream and it will never take off. India knows this and it has joined this pipeline just to keep the Americans happy. For us IP pipeline was more realistic but cannot take the risk of energy corridor through Pakistan.
@Nauman: What is an Indian name? Did you mean Hindu name? We have a David Smith who is also an Indian as is Feroze.
I don 't think Alann has ever represented himself as anything but an Indian.
@Ali Tanoli: Turkmenistan & Afghanistan ..... are they not islamic countries? How can you hurt your own muslim brothers? Is it OK to hurt your muslim brothers in the process?
Looking back, was it not a wise decision that India withdrew from IPI?
@Observer: Then stop observing silly news about silly acts. And MORE IMPORTANT stop commenting upon them...
We need Mr Shahid Malik as the Pakistan High Commissioner to India again.
Those of you who are congratulating Pakistan should know that a pipeline would mean income in the form of hard currency - something that it badly needs. In foreign policy circles, Pakistan is known to blackmail others "by putting a gun to their own head". This is another example of the same.
@Alann: Oh come on. You dont need to be sarcastic to gain publicity on a Pakistani website.
You loser !
We need Mr Shahid Malik as the High Commisioner of Pakistan to India again. He was the longest serving High Commisomer of Pakistan to India, and the situation during his time was much better.
@Alann.....you are an Indian.....why not use a Indian name? You are not fooling anyone.
Pakistan need India in order to attain it's full potential which is to be the "Byzantium " of Asia ,a progressive muslim state capable of uniting India with the Middle East and opening up the Indian Ocean to it commercial zenith.Religious extermist whether they are Christian ,Hindu or Muslim are redundant in this generation ,therefore the only successful path is to work with your neighbour not against them,ànd this include Iran as well.
Its a game that's it ..
This sounds rather silly. Who is it going to hurt most by refusing to push this forward? It is another one of the usual 'do what I ask for, of I will shoot myself in the head" threat that Pakistan often uses to blakmail the global community?
good move .
Good move. Pakistan shouldn't have any kind of trade relations with India, which is currently a kind of one way traffic benefiting only India. There is no wisdom in making the enemy even stronger by helping him economically.
India refused Iran Pakistan India pipeline saying that it would have to rely on Pakistan so why they would accept it now. Pakistan is in very good position and should get lions share.
No Gas for India unless it does not get itself disciplined. These bunch of lunatics need to be taught a lesson. Every time a warm hand is extended towards them, they back stab the peace.
Thank goodness
A blessing in disguise indeed...
Oh no! Pakistan is going to overtake India as an Asian superpower by refusing the deal! OMG!
Might be a temporary setback to Chevron but given the USA is on the verge of being a major oil exporter rather than importer why would the USA consider the TAPI pipeline critical? Other than the Iran implication it doesn't have obvious impact.
well done pakistan
A right decision is been made by Pakistan at the right time.
Excellent decision. Lets put all other issues on backside, until India realizes that Pakistan takes her unprovoked attacks at LoC very seriously. There must be no talks until India ceases her propaganda in Indian media and tenders unconditional apologies to us. Period.
very good.......We should buy Gas from Burma instead.This pipeline will be used as a weapon......time for Congress to go
Blow o US? Lol. US was only promoting TAPI as a way to discourage the IP pipeline. But now that KSA has had.a word with Nawaz and also Pakistan is desperate for an IMF infusion, the IP pipeline is.as dead as a dodo. Nawaz spoke about so many projects in his address to the nation - did he once mention the IP pipeline?
With the IP pipeline dead, do ou think US cares whether Pakistan goes ahead with TAPI pipeline or not? Earlier it tried o lack mail US by saying over meant might consider pulling back troops from Western border and deploy them at eastern border - that ploy too failed. This is because US knows that Pakistan does not use its troop deploy,ent on western border to reduce infiltration by Haqqanis or Afghan Taliban, so it no longer cares. Sorry trying to get US to pressurize India will not work.