News
Sunday, November 13, 2011
$7.6 billion TAPI gas pipeline projectAgreement reached on gas sale price
* Project to be materialised during Turkmen president visit
By Sajid Chaudhry
ISLAMABAD: As long-delayed imported gas price under $7.6 billion Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline project and Gas Sales Purchase Agreement (GSPA) is to be inked on November 14-15 during visit of Turkmenistan’s president, Pakistan would be required to pay 70 percent of the price of Crude Oil per barrel in international market.
Reliable sources in Ministry of Petroleum and Natural Resources (MPONR) informed Daily Times that both countries agreed over the imported gas sale price as imported gas sale price between Turkmenistan and Pakistan has settled and gas price, 70 percent of the price of Crude Oil per barrel in international market and it would be estimated about $10.28 per MMBTU. The source further said that all relevant documentation is under process and finally it would be inked during two-day visit of Turkmen President Kurbanguly Berdymukhamedov to Islamabad.
The ECC constituted a committee comprising the MPONR Asim Hussain, Secretary Cabinet, Secretary Finance, PSPM and Secretary Revenue to fine tune the proposals contained in the summary moved by the Ministry of Petroleum and Natural Resources for the finalization of the draft of the TAPI gas pipeline project. The Committee shall submit the report within shortest time before the commencement of the visit of the Turkmen president. The actual cost of this mega project was announced $3.3 billion, however because of long delay in settlement of gas sale price between Pakistan and Turkmenistan as well as worsening law and order situation on transit route, the cost of the project shoot up to $7.6 billion.
The gas volume in TAPI pipeline would be 3.2 billion cubic feet per day (bcf) out of which 500 million cubic feet per day would be bought by Afghanistan, whereas both Pakistan and India would buy 1,325 mmcfd gas each from the project. The previous source of pipeline project was Daulatabad while it had been relocated to South Yolstan /Osman in Turkmenistan. The diameter of pipeline would be 56 inches. The route of TAPI pipeline is from Heerat, Qandhar, Chaman, Zhob, Dera Ghazi Khan, Multan and Fazilka on Pak-India border with the total length of 1,680 km.
Courtesy www.dailytimes.com.pk