News
Thursday, January 26, 2012
India, Pakistan make progress on TAPI gas pipeline project* Petroleum Minister Dr Asim Hussain meets Indian counterpart
* Says strategy being evolved over issue of transit fee for project
NEW DELHI: India and Pakistan said on Wednesday they were closer to an agreement on a pipeline to import gas from Turkmenistan that would signal a further warming of economic ties between the traditional rivals.
Turkmenistan has the world’s fourth-largest gas reserves and energy-hungry India and Pakistan are both eager to tap this source through the pipeline that would run through Afghanistan.
“There has been considerable progress in our talks,” said Indian Oil Minister S Jaipal Reddy after a meeting in New Delhi with Minister for Petroleum and Natural Resources Asim Hussain.
The 1,700-kilometre TAPI pipeline aims to transport over 30 billion cubic metres of gas annually from the Dauletabad gas fields in southeast Turkmenistan.
“The issue of transit fees is being discussed with Afghanistan. A joint strategy is being evolved between India and Pakistan,” Hussain said.
“Whatever deal we reach will apply to both countries,” Reddy added.
Reddy said Pakistan would also consider a proposal to import Indian petroleum products and cited the savings in freight costs for Pakistan as several Indian refineries are located near the border.
Deepening economic engagement between the nuclear-armed neighbours is seen as crucial to lasting peace in the troubled South Asian region.
The Asian Development Bank estimated the cost of the TAPI pipeline in 2008 when the four countries signed a framework agreement at $7.6 billion.
Reddy said conflict-racked Afghanistan, which also desperately requires gas, was “very keen on the project” and had pledged security for the pipeline. The minister indicated that an earlier plan for a pipeline to carry gas from Iran to Pakistan and then India was now on the backburner.
“We do what is more easily possible,” Reddy said, referring to the Turkmenistan project.
Washington, which has spearheaded sanctions against Iran over its nuclear programme, favours the TAPI pipeline and has pressured both India and Pakistan to hold off on a pipeline deal with Tehran. afp
Courtesy www.dailytimes.com.pk