China abandons Iran-Pakistan gas pipeline, eyes TAPI

China abandons Iran-Pakistan gas pipeline, eyes TAPI

In a strategic move, China has shelved a plan to be part of the Iran-Pakistan (IP) gas pipeline that faces the threat of US sanctions and has come up with an offer to join the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline to meet its growing energy needs.

Beijing plans to lay a pipeline under the TAPI project from Gwadar to China, which will turn Gwadar Port into an energy corridor, Pakistani Paktribune news agency reported on May 1.

Bangladesh has already approached Turkmenistan, which will export gas from its vast reserves, and other countries that are part of the project, seeking to be part of the TAPI pipeline to meet its energy needs.

"Once Turkmenistan and US gas companies finalise a deal for exploration rights, China and Bangladesh will formally engage in talks to participate in the venture," an official said.

Already, China has taken over operational control of Gwadar Port where it will establish an industrial city.

Earlier, the official added, China had expressed interest in becoming a member of the IP project, but changed its stance later as the future of the venture looked uncertain in the face of influence from a Gulf Arab country and threat of US sanctions.

Pakistan and the three other participating countries are finalising tender documents for the TAPI pipeline in consultation with the Asian Development Bank that is playing the role of transaction adviser.

However, officials said progress had been very slow because of some unresolved issues between Turkmenistan and US companies including Chevron and ExxonMobil. Only that company will get the contract for laying the gas pipeline that has gas extraction contracts in Turkmenistan.

Turkmenistan does not offer exploration rights to foreign companies for its onshore fields. However, it has offered offshore exploration rights to Chevron and ExxonMobil, which could enter into swap arrangements for onshore fields.

"This process is yet to be finalised. It could be expedited when the petroleum minister of Pakistan and delegations of Afghanistan and India visit Turkmenistan in the second week of May to attend an energy conference where they will hold meetings on the sidelines," the official said.

The two US firms have been shortlisted, which will be given tender documents for vying for the pipeline contract.

According to officials, the four countries linked with the TAPI project are in the process of setting up a consortium and selecting a technically capable and financially sound company as consortium leader, which will design, finance, construct, own and operate the gas pipeline.

Chevron, a renowned oil and gas company with vast experience in the energy sector including gas pipelines, is one of the potential consortium leaders. Indian and Afghan officials had already met a representative of Chevron in Delhi to discuss the company's potential role in the project as a consortium leader.

Chevron had also approached Pakistan, insisting it was keen to undertake work on the pipeline and there was a strong possibility that the company would be selected as the consortium leader to finance, design and build the pipeline.

Under the TAPI project, Pakistan will get 1.365 billion cubic feet of gas per day (bcfd) from Turkmenistan, India will also receive the same 1.365 bcfd and Afghanistan will get 0.5 bcfd.

Turkmenistan will export natural gas through a 1,800km pipeline that will reach India after passing through Afghanistan and Pakistan.

Pakistan and India have already signed gas sale and purchase agreements and efforts are under way to attract potential investors for financing the project.

Subscribe to Trend in Google News! Subscribe
TBC Capital shares outlook on Georgia’s tourism recovery
TBC Capital shares outlook on Georgia’s tourism recovery
Azerbaijani State Tourism Agency talks about prices for air tickets (Exclusive)
Azerbaijani State Tourism Agency talks about prices for air tickets (Exclusive)
Azerbaijan talks impact of border restrictions on tourism due to COVID-19 (UPDATE)
Azerbaijan talks impact of border restrictions on tourism due to COVID-19 (UPDATE)
Loading Bars
Latest
Azerbaijan to file two lawsuits against Armenia in 2022 – MFA
Azerbaijani, Turkish FMs hold phone talk
Int'l Court of Justice rejected Armenia's petition on War Trophy Park - Azerbaijani MFA
Activities in Iran’s Jask Port down
Azerbaijan's SMBDA eyes creating alternative source of lending to SME entrepreneurs
Azerbaijan's SMEs have wide access to cashless solutions – SMBDA
Proposal made to exempt from taxes import of goods for mine clearance to Azerbaijan
Transition to open, digital banking envisaged in Azerbaijan in next five years – CBA (PHOTO)
Kazakhstan forecasts unchanged volume of oil production in 2022
Azerbaijan’s Central Bank takes measures to ensure high level dev’t of non-cash payments (Exclusive)
Azerbaijan Banks Association projects share of non-cash payments in total turnover by 2025
Iran’s NICICO boosts copper production
Intel plans Mobileye flotation at over $50b valuation
Kazakhstan’s Pavlodar Oil Chemistry Refinery opens tender to buy pipes
TBC Capital shares outlook on Georgia’s tourism recovery
Azerbaijan openly calls on Armenia to prevent confrontation – deputy FM
International Court of Justice recommended Armenia to resolve border demarcation issue - Azerbaijan's MFA
Azerbaijan’s MFA talks Yerevan's claims on detained persons of Armenian origin
Armenia provided Azerbaijan with maps of its mined lands three days before court's decision - MFA
Azerbaijani minister talks current problems in local labor market
Azerbaijan’s liberated territories have great potential for employment – minister
Georgia’s textile imports from Turkey increase
Azerbaijan suffered from equal treatment of aggressor and victim - MFA
Iran records increase in transit of goods via trucks through its territory
Azerbaijan working on several youth development projects - Minister of Youth and Sports
Possible opening of cruise line between Azerbaijan, Russia has high potential - Astrakhan governor
Azerbaijan sees increase in concluded labor contracts over past four years - minister
Azerbaijan’s Central Bank talks increase in non-cash payments (PHOTO)
Azerbaijan to be fully covered by internet by late 2024 - deputy minister
Georgia releases COVID-19 data for December 8
Developing contactless payments to help further digitalize Azerbaijan's economy - VISA
Azerbaijan talks progress of tunnel road building between Goygol, liberated Kalbajar districts
Azerbaijani oil prices increase
Baku holds Azerbaijan Career Development Forum (PHOTO)
Business centers of Azerbaijan, Russia’s Astrakhan sign memorandum of co-op (PHOTO)
Baku port transports goods in transit mainly to Central Asia, Europe – head of main cargo terminal
Kazakhstan eyes increasing requirements for commodity exchanges
Georgia launches energy reform program, backed by KfW, EU
Uzbekistan shares domestic COVID-19 data for December 7
Iranian currency rates for December 8
Oil prices ease as investors wait for assessment of Omicron's impact
EIA revises down forecasts for Azerbaijan’s 2022 petroleum production
Azerbaijan to commission new enterprises for production of sulfuric acid and glass containers
MFA issues statement on 30th anniversary of Azerbaijan's membership in OIC
Iran's Energy Exchange announces products to be on sale on Dec. 8
OSCE Minsk Group Co-Chair countries release statement
Gunmen torch bus, kill 30 passengers in Nigeria's Sokoto state
Azerbaijan’s Central Bank talks dev’t strategy for securities market until 2023
Pfizer Shot Provides Partial Omicron Shield in Early Study
Australia joins diplomatic boycott of Beijing Winter Games
704 new COVID-19 cases reported in Kazakhstan
France reports record daily COVID-19 count
U.S. Senate backs $650 million missile sale to Saudi Arabia
Mandatory vaccination should be a last resort, says WHO Europe chief
Bolsonaro dismisses vaccination requirement for entry into Brazil
Israel announces completion of high-tech barrier around Gaza
Northern Ireland reports first Omicron cases
Police officer killed in NW Pakistan's firing
Sweden to reintroduce many COVID-19 measures as cases rise
Armenia has no choice but to open Zangazur corridor - experts
Turkey, Qatar strengthen bilateral ties with 15 new deals
Georgian parliamentary delegation visits Washington
Chinese company plans to build a technopark and solar power plant in Uzbekistan
WHO donates 260k packs of intravenous solutions to Iran
Cost of cargo transported via trains up in Azerbaijan
International Court of Justice grants Azerbaijan's request for temporary measures against Armenia
Western media shows neutral approach to Azerbaijan’s Zangazur corridor - Head of Trend News Agency’s Foreign Projects Directorate
Azerbaijan donates 100,000 doses of Sinovac vaccine against COVID-19 to Burkina Faso (PHOTO)
Information spread in Armenian media about killing of illegal militant on territory of Azerbaijan is baseless – MoD
Azerbaijani MFA comments on statement of Armenian foreign ministry
International Court of Justice urges Armenia to take urgent measures against groups and individuals making violent calls on ethnic grounds
International Court of Justice refused to secure Armenia's claim for immediate return of so-called POWs
Azerbaijan completes over half of construction of Barda-Aghdam highway
Azerbaijan building new high-speed road in Shusha city
Azerbaijan-Iran plan to build new bridge to increase traffic
Iran Securities and Exchange Organization focusing on strengthening Capital Market Stabilization Fund
Iran looks to expand agricultural ties with Romania
EIB, EBRD touch on Georgia’s economic growth
Price indexes of industrial, trade sectors at Uzbek stock exchange fall
Georgia shortens terms of COVID-19 booster vaccination
Azerbaijan shares data on 10M2021 oil exports to Vietnam
Uzbekistan shares stats on export of textile products for 10M2021
Kazakhstan's KMG talks project of new gas processing plant in Mangistau
Iran's Bahar Azadi gold coin price increases
Azerbaijan sees decrease in import of vehicles, spare parts over 10M2021
Volume of loaded/unloaded cargo in Iran’s Qeshm port up
Value of Azerbaijan's export to Turkmenistan up for 10M2021
Azerbaijan’s energy ministry opens tender to buy technical support services
Azerbaijan-Iran to take steps to increase trade turnover – Iranian ambassador
Shootout occurs on border between Azerbaijan and Iran - offender neutralized
Baku Int'l Sea Trade Port reveals details of dev’t strategy until 2035
First harvest gathered in mushroom greenhouse in Turkmenistan’s Mary region
Azerbaijan-Iran implementing agreements on joint cooperation – ambassador
Germany's next finance minister stresses price stability
SOFAZ shares estimates of budget revenues for 2022
Iran opens office for cargo barter with Pakistan
Number of legal entities restoring activity in Azerbaijan slightly increases in 11M2021
President Ilham Aliyev receives President for Exploration and Production of TotalEnergies (VIDEO)
Indian embassy in Baku holds webinar on electronic and computer hardware/software products (PHOTO)
Sport in Azerbaijan - integral part of state policy, deputy minister says
All news