THURSDAY OCTOBER 27: Ashgabat wants to sell gas at 74 percent parity of petrol: TAPI gas line price issue discussed

ISLAMABAD: Pakistan and Turkmenistan on Wednesday held a meeting on price-related issues of Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. According to well-placed sources in the ministry of petroleum and natural resources, Turkmenistan offered Pakistan that it was willing to sell gas at 74 percent parity of petrol, while Pakistan requested for a price below 74 percent.
A high-level Turkmenistan delegation is currently visiting Pakistan to settle the gas price so that work on long-awaited TAPI project could be initiated. The Pakistani side was led by Petroleum and Natural Resources Minister Dr Asim Hussain. Secretary Petroleum and other concerned officials were part of the team.
At present, Pakistan is facing a severe gas shortage of about 2 Million Cubic Feet Per Day (MMFCD). The country desperately wants to get gas either from Iran through Iran-Pakistan Gas Pipeline project or from Turkmenistan through TAPI gas pipeline project.
Under the TAPI gas pipeline project, Pakistan is set to receive 1,350 Million Cubic Feet Per Day (MMCFD) out of the total 3,200 MMCFD. An inter-governmental agreement and a gas pipeline framework agreement have already been signed between the four countries. The four countries were hoping to sign the sales purchase agreement by July 31, 2011 at Manila, but failed.
Talking about the benefits of the planned TAPI pipeline project, they said that it offered benefits to all the four participating countries and would promote regional co-operation. For Turkmenistan, it would provide revenue and diversification of export routes; for Pakistan and India, it would address energy deficits. While in Afghanistan, it would provide revenue for development and gas for industrial units. The potential for export to other countries through the Pakistani port of Gwadar is a further advantage. TAPI is consistent with the US declared policy of linking Central and South Asia and diversifying export routes for Turkmen gas. TAPI could provide business opportunities in construction and operation of the pipeline to a number of countries.
"As far as Pakistan is concerned we are committed to completing this project as we are facing a severe energy shortage and our main industry - textile - has started shifting to other countries due to energy crisis. The gas imported from Turkmenistan would be used for power generation to enable our industry to sustain and grow," one of the top officials working on the project said.
The official added that that the main concern in relation to the construction of TAPI project is that a large portion - up to 800 kilometres - of the gas pipeline would be passing through the Afghan territory, but that country is still facing acute security issues. They maintained that after the TAPI agreement signed in April 2008, the Afghan government assured a committee on the project that, within two years, the pipeline route would be cleared of landmines and Taliban influence, but still nothing has been done in this connection.
"Since the TAPI route passes through areas with major insurgencies, security is clearly an issue. In both Afghanistan and the tribal area of Pakistan, people along the route have long histories of independence from central and foreign powers. Unless their co-operation is sought and the benefits to them are clear, pipeline security will be an expensive nightmare for years to come," an official working on the project said.