ISLAMABAD: Final round of talks among the four participating counties of Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project would be held in Kabul on April 19 to finalise the structure of the much-needed energy project for India and Pakistan.
Federal Secretary Petroleum Mohammed Ejaz Chaudhry, after his return from India where he attended 7th Asia Gas conference, stated this while talking to a group of journalists here on Wednesday. Ejaz said Pakistan has requested Turkmenistan for the same gas price which it had agreed with Afghanistan, adding that the price would be around 50 cents per Million British Thermal Units (mmbtu). He maintained that India has also appreciated Pakistan's suggestion regarding pricing of TAPI gas but has not yet accepted the proposal.
The 1,680-km long TAPI gas pipeline is targeted to bring 3.2 Billion Cubic Feet per Day (bcfd) of natural gas from Turkmenistan's gas fields to Multan and end at the north-western Indian town of Fazilka. Pakistan also intends to import 750 million cubic feet of gas daily for 25 years from Iran, according to the terms of the agreement. The secretary said that a high level Pakistani delegation will also visit Russia on April 2-3 to invite Russian Gas Company Gazprom to bid for the Iran-Pakistan gas pipeline project.
Gazprom has submitted the Expression of Interest in response to Inter Sate Gas Company's invitation in August 2011, Ejaz said and added that Pakistan and Gazprom signed a Memorandum of Understanding (MoU) in 2005. He said Afghanistan has refused to purchase TAPI gas, however would allow the gas to be transited through their country to India and Pakistan. This implies 750 mmcfd destined for Afghanistan would now be available for Pakistan and India. Talks between the two nuclear rivals on this are expected on 19 April.
According to Ejaz, Gazprom has expressed an interest in the construction of IP as well as Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects. On a question, he said if the relevant authorities approve Pakistan could import petroleum products from India.
Ejaz said Pakistan will also invite Indian oil/gas exploration and production companies to invest in Pakistan's oil/gas sector, but it is subject to the approval of relevant authorities. The government has asked the two parties to import 400 mmcfd of Liquefied Natural Gas (LNG) each and the Petroleum Ministry would soon issue tender. He said the government would provide offtake guarantee to the importers of LNG. On a question regarding high price of LNG which stands at $18 per mmcfd, Ejaz said the government would utilise LNG for power generation and has asked the interested companies to set a price of LNG less than furnace oil.