Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi, has said that the Turkmenistan- Afghanistan-Pakistan-India (TAPI) pipeline project will bring 3.2 Billion Cubic Feet Gas per Day (BCFD) of gas to energy deficit nations and it would be completed by December 2019.
Speaking at a press conference here on Tuesday, Abbasi said that it was a significant achievement as the project was lingering since 1990, adding that within past two and half years partner countries worked hard to initiate the project. He said that all the member states were eager to initiate the project as they faced serious challenges but finally Turkmenistan government took the decision to become lead financer and now construction of TAPI had been started.
"The agreement between the partners is for a period of 25 years and the area from where gas will be supplied has proven reservoirs of 21 Trillion Cubic Meters (TCM) of gas which can last for 100 years," the minister said. Responding different questions, Abbasi said that the work on Pakistan's segment of the pipeline was likely to start by early 2017 and the gas price at Afghanistan border will be around 8 percent of the Brent oil and if added the tolling fee of the pipeline at current oil prices it will cost in the range of $5.7-6.2 per MMBTU.
"The government of Turkmenistan will invest an estimated amount of $25 billions in developing gas fields and laying of 1.680 kilometer gas pipeline. Each of the other partner country will have five percent shares in the construction of the pipeline," the minister maintained.
To a question, he said TAPI volume would overcome almost 70 percent of the current gas shortfall and save almost $1 billion per year by replacing liquefied fuels for power generation. Answering another question, he said PSO would float tenders to import 60 more LNG cargos, which would help augment supplies for peak winter seasons. "The gas demand of the domestic consumers in Punjab has crossed the total supply on the network of the Sui-Northern Gas Pipelines (SNGPL), as a result consumers are facing low gas pressure," he added.
To another question, the minister said that Pakistan was a unique country supplying gas to domestic consumers in rural as well as urban areas, adding that the trend must be checked. He said that the government was considering of regulating the prices of Liquefied Petroleum Gas (LPG) so that it can be made affordable to household consumers, as supplying gas through pipeline to every household was not possible.
He said TAPI Pipeline Company Limited (TPCL) was responsible for laying a 56-inch diameter 1680 kilometer pipeline from supply source at Gylkynish and adjacent gas fields, sneaking through Heart-Kandahar-Chamman-Zhob-DG Khan-Multan and Fazilika-Pakistan- India border.
He said Pakistan had been selected as chairman of the company's board with having five percent shareholding like India and Afghanistan. Out of total gas volume, Afghanistan would get 500 mmcfd and Pakistan, India each will get 1,325 mmcfd. However, the Minister added, either Pakistan or India could purchase more gas if Afghanistan wanted to provide the natural gas out of its total share, he added.
He said the gas would be cheapest in terms of its price, adding that Bangladesh had also expressed willingness to be part of the project, but it will be an arrangement between India and Bangladesh. To a question about the security of the pipeline, the Minister said that the security of the project would be the responsibility of the each country. "Pakistan will get $250 million from India as transit fee and Afghanistan will also get the same amount from Pakistan. The agreement is between the states and the change of any government in any partner country will have no impact on the project," he added.
These countries would have to bear security cost out of royalty or transit fee as each country would have to pay transit fee to other country of the project, he added. The minister said that at present the tripartite transit agreement negotiations between Afghanistan-Pakistan-India are underway.
Out of the total gas of the project, the minister said, 25 percent of gas would be fed to Sui Southern Gas Company (SSGC) and 75 percent to Sui Northern Gas Pipelines Company Limited (SNGPL) to inject it in their systems as per the decision of the ECC. The minister was of the view TAPI project was the best manifestation of the government's efforts to bridge supply and demand gap which had rose to around 2 bcfd.
The minister said the law dealing with gas thefts cases had expired as a result the government agencies have no powers to nab the thieves, adding that the government was considering to pass gas theft law in the joint sitting of the Parliament, but it did not take place, so gas the anti theft bill will soon be presented before the National Assembly and Senate. About former Advisor on Petroleum Dr Asim case, the Minister said that the Ministry would provide information if any law enforcement agency requested. He said oil mafia was out to thwart government's efforts to import gas, but now the mafia had been defeated as the government succeeded in importing LNG and kicked off TAPI project.