Turkmenistan, Pakistan mull TAPI gas pipeline project
Ashgabat, Turkmenistan, Oct. 17
By Huseyn Hasanov – Trend:
Turkmenistan and Pakistan have discussed the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Trend reports referring to “The News” Pakistani newspaper.
Turkmenistan has indicated to Pakistan that it will include the mechanism in the TAPI agreement ensuring that Pakistan will be compensated against gas transit loss in Afghanistan in case of any subversive activity in the territory of war ravaged country.
In addition Turkmenistan has agreed to review the gas prices for which an experts’ team from Turkmengas company will visit Pakistan soon.
Pakistan deems that the gas price formula under which the gas prices of every buying countries (Afghanistan, Pakistan and India) has been worked out, is too much complicated and the new gas price formula need to be worked out.
Pakistan signed the Host Government Agreement (HGA) with Turkmenistan in March 2019 and will lay gas pipeline on its section from Chaman to Multan cities via Quetta and Dera Ismail Khan cities.
A full version of the HGA is being developed and the agreed draft will be put on the table before the cabinet of ministers for formal approval. HGA will authorize TAPI Pipeline Company Limited to implement and operate Pakistan’s segment of the pipeline project over the next 25 years.
The Turkmengas State Concern is the leader of the TAPI Pipeline Company Ltd. international consortium. It has a controlling stake and acts as the main financier and manager of the project. The consortium also includes the Afghan Gas Corporation, Pakistan’s Inter State Gas Systems (Private) Limited Company and India’s GAIL Company.
The operations on laying the Turkmen section of the TAPI gas pipeline are planned to be completed till late 2019, the construction of which was launched in December 2015. The construction of the Afghan section was launched in February 2018.
The pipeline’s design capacity will be 33 billion cubic meters of gas per year.