Pak-Turkmen gas project materializes

After years of intensive negotiations, which were tentative too, Pakistan and Turkmenistan on Thursday, October 27, finally reached an accord on a gas pipeline project. The delivery of 1.3 billion cubic feet gas a day is expected to infuse a new life into
Pakistan’s energy sector,  due to continuous depletion of resources.

The 7.6 billion dollar Turkmenistan, Afghanistan-Pakistan-India (TAPI) pipe line project had yet to see the light of the day owing to a host of developments in the region. From the rise of the Taliban since 1996 to the US invasion of Afghanistan, the project
could not materialize, leaving energy-starved countries in the region desperate for lifeline.

Pakistan is said to be signing the project with Turkmenistan on the 15^th of next month after what is reliably told to be the affirmative nod that the Turkmen team got from the country’s leadership. The price parity for the two countries was of
huge importance.

Under the project, Pakistan will get gas at 69% crude oil parity price which in itself is a good news for the country. “The final price that Pakistan secured after negotiations comes to about 69 per cent of brent crude parity price at Pak-Afghan border inclusive
of transit cost,” an official said. The transit cost comes to about 8 per cent of gas price.

Compared to Iran-Pakistan pipeline project, the agreement with Turkmenistan seems more realistic and beneficial for Pakistan given the fact that the US too has no objection to it. He also said: “Pakistan is estimated to save about $12 billion compared with
the initial demand of Turkmenistan over the 25-year life of the project that also has the blessings of the United States.”

Add to it the fact that Dr. Asim Hussain, Pakistan’s Petroleum Minister, said that Iran has offered 10,000 MW of electricity. But there are some problems attached to it since Iran is facing countless sanctions from the United Nations due to its alleged nuclear
program.

Dr. Asim said Pakistan is looking forward to invite international tenders for the Iran-Pakistan pipeline project soon. Also, he said a financial adviser in this regard would be appointed by 15^th of next month.

Short URL: https://www.newspakistan.pk/?p=1856

Posted by Sajjad Hussain on Oct 28 2011. Filed under Latest News, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry