The 1,680-km pipeline will carry 90 million cubic metres

Image
Press Trust of India
Last Updated : Feb 06 2013 | 4:30 PM IST
a day (mmcmd) of gas and is scheduled to become operational in 2018. India and Pakistan will get 38 mmcmd each, while the remaining 14 mcmd will be supplied to Afghanistan. TAPI will carry gas from Turkmenistan's Galkynysh field, better known by its previous name South Yoiotan Osman that holds gas reserves of 16 trillion cubic feet. From the field, the pipeline will run to Herat and Kandahar province of Afghanistan, before entering Pakistan. In Pakistan, it will reach Multan via Quetta before ending at Fazilka (Punjab) in India. In all, the pipeline would travel 735-km in Afghanistan and another 800-km in Pakistan. Sources said global energy majors like Exxon Mobil and Chevron are willing to lead the construction of the pipeline only if they get a share in the Turkmenistan gas field. Turkmenistan has so far refused as its national laws do not permit foreign equity in oil and gas fields on land. It has agreed to grant service contracts to the overseas investors but that has not impressed the global majors who are unwilling to take financial and operational risks for a less profitable construction and service contract. Sources said India will pay for the gas only when it is delivered to it at its border. Afghanistan and Pakistan would sign host country agreements to provide security to the pipeline. In exchange, they would get USD 0.50 per million British thermal unit as transit fee from India. Ex-Soviet Turkmenistan is promoting TAPI pipeline as a key element in plans to cut reliance on supplies to Russia and to boost annual gas exports to 180 billion cubic metres by 2030. BP data shows Turkmenistan's natural gas reserves equal to those of Saudi Arabia and behind only Russia, Iran and Qatar.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 06 2013 | 4:30 PM IST

Next Story