Turkmen gas to cost India at least USD 10/mmBtu

Ashgabat (Turkmenistan), Dec 12 (PTI) Turkmenistan gas
supplied through a proposed USD 7.6 billion pipeline
traversing Afghanistan and Pakistan will cost India at least
USD 10 per mmBtu.
"Turkmenistan sells natural gas to China for USD 7.5 per
million British thermal unit (mmBtu). Gas through the
Turkmenistan-Afghanistan-Pakistan-India pipeline is likely to
be priced at least at this level," an official said here.
Over-and-above the USD 7.5/mmBtu has price paid by China,
India will have to pay an additional USD 1.2-1.5/mmBtu as
wheeling charges, besides an equivalent amount as a transit
fee, to Pakistan and Afghanistan for guaranteeing safe passage
of gas through their territory.
"The delivered price of gas at Indian border will be in
excess of USD 10 per mmBtu," he said.
Indian Oil Minister Murli Deora Saturday signed an
Inter-Governmental Agreement (IGA) and Gas Pipeline Framework
Agreement for the Turkmenistan-Afghanistan-Pakistan-India
(TAPI) pipeline.
The official said the agreements laid down the framework
for implementation of the TAPI project, but issues like the
price of gas and safe delivery of gas would be addressed
separately.
At the signing ceremony attended by Pakistan President
Asif Ali Zardari, Afghanistan President Hamid Karzai and
Turkmenistan President Gurbanguly Berdimuhamedov, New Delhi
voiced concerns over the safety of the pipeline, which would
pass through the Taliban stronghold of Kandahar, besides other
restive tribal areas in Pakistan.
"There are issues that need to be addressed. We have to
come to a decision regarding the price of gas, security of the
pipeline, certainty of the gas supply, transit fee and setting
up of the consortium (to build the pipeline)," Deora said.
A rival project for transporting gas from Iran to India
via Pakistan through another transnational pipeline -- dubbed
the Iran-Pakistan-India (IPI) pipeline -- has been stuck on
the drawing board for over a decade now because of concerns
over the safe passage of gas through Pakistani territory.
"Quite obviously, our goal is not merely the construction
of the pipeline, but also continuous and uninterrupted flow of
Turkmen natural gas over several decades," he said.
The Asian Development Bank (ADB) is the Lead Development
Partner of the project, which envisages supply of gas from
Turkmenistan's South Yoloten-Osman field to Afghanistan,
Pakistan and India.
The pipeline will traverse 1,650 kilometres of Afghan and
Pakistani territory from the Afghanistan-Iran border before
entering India at Fazilka, in north Indian state of Punjab.
As per the plan, 38 million standard cubic metres per day
of gas would be supplied to both India and Pakistan for the
next 30 years through the pipeline, while 14 mmscmd would be
bought by Afghanistan, the official said.