Govt approves signing pact for TAPI gas pipeline project

New Delhi, Dec 8 (PTI) The government has approved signing
of agreements to import natural gas through the US-backed
Turkmenistan-Afghanistan-Pakistan-India pipeline, whose terms
are far less stringent than those it had set for another
proposed pipeline involving Iran.

"The Union Cabinet yesterday (Tuesday) evening approved
signing of Inter-Governmental Agreement and Gas Pipeline
Framework Agreement for TAPI pipeline project at a summit
meeting of the four participating nations at Ashgabat on
December 11," Indian Oil Minister Murli Deora said here.
In a major departure from its previously stated policy of
the seller delivering the gas at its border, India has agreed
to take custody of the gas at Turkmenistan-Afghanistan border
and will rely on an international consortium for safe transfer
of the fuel through Afghanistan and Pakistan.
While negotiating a similar project to import gas from
Iran via Pakistan through a pipeline that would have been
shorter, cost cheaper and easier to build, India had insisted
that Tehran take the responsibility of safe passage of gas
through Pakistan.
No talks have taken place for the Iran-Pakistan-India
pipleline in the last few years.
Besides, in the TAPI pipleline project, Turkmenistan is
not agreeable to making up for any shortfall or disruption in
gas supplies, sources said.
While Pakistan Prime Minister Yousaf Raza Gilani and
Presidents of Afghanistan and Turkmenistan are expected to
participate in the summit, Deora will represent India.
Deora said that in the IGA, the four nations will commit
to provide government support including security for the
1,700-km pipeline that may cost upwards of USD 10 billion. The
GPFA would lay down terms of transporting gas through the
pipeline that may take up to 5 years to build.
The twin agreements will be followed by negotiations on
the price of natural gas and other commercial terms, he said.
"The signing of IGA and GPFA would set the framework for
future implementation of the TAPI project," he said, adding
that India and Pakistan will import 38 million cubic meters of
gas per day each from Turkmenistan while Afghanistan will get
14 mmscmd.
New Delhi had previously raised security and financing
concerns over Iran-Pakistan-India gas pipeline but appears to
be satisfied about the line from Turkmenistan that would not
just pass through Pakistan but also Afghanistan.
The TAPI pipeline is backed by Asian Development Bank
(ADB), and the External Affairs Ministry sees it as an
opportunity to project India's commitment to Afghanistan.
Turkmenistan will supply gas from its South Yoloten-Osman
field and state-owned gas utility GAIL India will enter into a
Gas Sales and Purchase Agreement (GSPA) with the Central Asian
country's national oil firm Turkmengaz later. PTI ANZ
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