ID :
178701
Thu, 04/28/2011 - 21:13
Auther :
Shortlink :
https://oananews.org//node/178701
The shortlink copeid
TAPI: Broad terms finalised; decision on gas price by July
New Delhi, Apr 28 (PTI) Side-stepping security concerns,
India on Thursday finalised most of the terms on which it
plans to buy natural gas from Turkmenistan through a pipeline
passing through Afghanistan and Pakistan.
Terms of the Gas Sale and Purchase Agreement (GSPA) were
finalised at a meeting of the oil ministers of the four to
Turkmenistan-Afghanistan-Pakistan-India gas pipeline here
on Thursday but crucial aspects of price of gas and transit
fee were left to be decided by July.
"All four countries are equally interested in the TAPI
pipeline," Oil Minister S Jaipal Reddy told reporters after
the ministerial meeting that was held after three days of
technical level talks.
Transit fee that India has to pay to Pakistan and
Afghanistan for allowing passage of the gas will be decided at
an official level meeting in Kabul on May 13-14.
After ascertaining the transit fee and transportation or
charge for wheeling the gas through the pipeline, the four
countries will meet in Turkmenistan to discuss gas price.
Gas purchase framework agreement, which was agreed in
December last year, has been amended by the ministers to
extend the deadline for signing of the GSPA to July 31 from
April-end that was decided earlier.
A consortium that will build and operate the pipeline
will be put in place by 2013 and the pipeline will be
completed by 2016, Reddy said.
Reddy, however, side-stepped questions about security of
the pipeline, that is to transport gas from southern
Turkmenistan to India through Afghanistan's Helmand and
Kandhar provinces that are under control of Taliban.
A Hussain, Energy Advisor to the Prime Minister of
Pakistan, said: "We are looking at the security concerns... we
will make arrangements for the security."
Asked if Hussain's statement was enough for India to be
assured of safety of the pipeline, Oil Secretary S Sundareshan
said the Pakistani official "has already stated that."
"Transit countries will take responsibility of safety and
supply," Reddy said.
The pipeline will traverse 1,650 km of Afghan and
Pakistani territories before entering India at Fazilka, in the
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 30
years while 14 mmscmd would be bought by Afghanistan.
Construction of the pipeline is due to start in 2013 and
be completed and operational by the end of 2016.
Turkmenistan is talking of three different prices for
Afghanistan, Pakistan and India that are likely to be not less
than USD 7-7.5/MMBtu, the rate at which it sells gas to China.
At the ministerial meeting, New Delhi raised the issue of
safe delivery of fuel through the line.
"There are issues that need to be addressed. We have to
come to a decision regarding the price of gas, security of the
pipeline, certainly of gas supply, transit fee and setting up
of the consortium," Reddy said at the meeting.
As a buyer, and being at the tail-end of the project,
India has concerns relating to safety of the pipeline and
safe transit of gas through Afghanistan and Pakistan.
"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," Reddy said.
"This Project would be an enduring example of regional
cooperation, bringing together Central Asia and South Asia in
a long partnership for mutual benefit and advancement. TAPI
Project is going to be the Silk Route of the 21st Century,"
Reddy said.
TAPI is being pushed by the US as an alternative to
Iran-Pakistan-India (IPI) pipeline.
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.
Turkmenistan will deliver the gas at the Afghanistan
border and thereafter, a consortium of companies constituted
by the project participants would take responsibility for
establishing, operating and maintaining the transnational
pipeline for transportation of the gas.
This is a major departure from the terms that are being
discussed for the IPI pipeline. New Delhi will take custody
and pay for the gas through the IPI only at its border with
Pakistan, making Iran and Pakistan responsible for safe
delivery of gas.
But in case of TAPI, Turkmenistan will not be responsible
for any shortfall in supplies caused due to disruptions.
India on Thursday finalised most of the terms on which it
plans to buy natural gas from Turkmenistan through a pipeline
passing through Afghanistan and Pakistan.
Terms of the Gas Sale and Purchase Agreement (GSPA) were
finalised at a meeting of the oil ministers of the four to
Turkmenistan-Afghanistan-Pakistan-India gas pipeline here
on Thursday but crucial aspects of price of gas and transit
fee were left to be decided by July.
"All four countries are equally interested in the TAPI
pipeline," Oil Minister S Jaipal Reddy told reporters after
the ministerial meeting that was held after three days of
technical level talks.
Transit fee that India has to pay to Pakistan and
Afghanistan for allowing passage of the gas will be decided at
an official level meeting in Kabul on May 13-14.
After ascertaining the transit fee and transportation or
charge for wheeling the gas through the pipeline, the four
countries will meet in Turkmenistan to discuss gas price.
Gas purchase framework agreement, which was agreed in
December last year, has been amended by the ministers to
extend the deadline for signing of the GSPA to July 31 from
April-end that was decided earlier.
A consortium that will build and operate the pipeline
will be put in place by 2013 and the pipeline will be
completed by 2016, Reddy said.
Reddy, however, side-stepped questions about security of
the pipeline, that is to transport gas from southern
Turkmenistan to India through Afghanistan's Helmand and
Kandhar provinces that are under control of Taliban.
A Hussain, Energy Advisor to the Prime Minister of
Pakistan, said: "We are looking at the security concerns... we
will make arrangements for the security."
Asked if Hussain's statement was enough for India to be
assured of safety of the pipeline, Oil Secretary S Sundareshan
said the Pakistani official "has already stated that."
"Transit countries will take responsibility of safety and
supply," Reddy said.
The pipeline will traverse 1,650 km of Afghan and
Pakistani territories before entering India at Fazilka, in the
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 30
years while 14 mmscmd would be bought by Afghanistan.
Construction of the pipeline is due to start in 2013 and
be completed and operational by the end of 2016.
Turkmenistan is talking of three different prices for
Afghanistan, Pakistan and India that are likely to be not less
than USD 7-7.5/MMBtu, the rate at which it sells gas to China.
At the ministerial meeting, New Delhi raised the issue of
safe delivery of fuel through the line.
"There are issues that need to be addressed. We have to
come to a decision regarding the price of gas, security of the
pipeline, certainly of gas supply, transit fee and setting up
of the consortium," Reddy said at the meeting.
As a buyer, and being at the tail-end of the project,
India has concerns relating to safety of the pipeline and
safe transit of gas through Afghanistan and Pakistan.
"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," Reddy said.
"This Project would be an enduring example of regional
cooperation, bringing together Central Asia and South Asia in
a long partnership for mutual benefit and advancement. TAPI
Project is going to be the Silk Route of the 21st Century,"
Reddy said.
TAPI is being pushed by the US as an alternative to
Iran-Pakistan-India (IPI) pipeline.
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.
Turkmenistan will deliver the gas at the Afghanistan
border and thereafter, a consortium of companies constituted
by the project participants would take responsibility for
establishing, operating and maintaining the transnational
pipeline for transportation of the gas.
This is a major departure from the terms that are being
discussed for the IPI pipeline. New Delhi will take custody
and pay for the gas through the IPI only at its border with
Pakistan, making Iran and Pakistan responsible for safe
delivery of gas.
But in case of TAPI, Turkmenistan will not be responsible
for any shortfall in supplies caused due to disruptions.
