TAPI Gas Pipeline

Discussion in 'Economy & Infrastructure' started by ganesh177, Sep 6, 2010.

  1. ganesh177

    ganesh177 Regular Member

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    So be it iranian gas or turkmen, we have to rely on pakistan to carry our gas at our border. Just more reasons, how much is not having acess to POK is hurting india. We could have no single pipe line built when our economy is all hungry.

    Turkmen gas for Pakistan and India



    Turkmenistan and Afghanistan have signed a framework agreement to build the Trans-Afghanistan Pipeline (TAPI) running through Pakistan and into India.



    The 1,680 km long pipeline is expected to come online in 2015 and pump 33 billion cubic metres of natural gas a year. Experts voiced concerns, however, as the pipeline will be snaked through a troubled region on the border between Afghanistan and Pakistan.

    The agreement was signed on Monday in Kabul at a Turkmen-Afghan intergovernmental commission meeting. The document was signed by Bairamgeldy Nedirov, Turkmenistan’s Oil and Gas Industry and Mineral Resources minister, and Vahidulla Shahrani, minister for Mines and Mining of Afghanistan. This is the first concrete document in the project’s 15-year history. The new pipeline, stretching 1,680 km, will link the Dovletabad gas field in Turkmenistan with the Fazilka settlement on the Indian-Pakistani border, running across Afghanistan. The pipeline, at intake, will have 33 billion cubic metres of capacity a year, and at exit in India, 17-18. If all goes as planned and construction begins this year, TAPI will become operational in 2015. Turkmen officials plan to visit Islamabad and Delhi over the next few weeks to sign similar agreements there.

    Talks on the gas pipeline’s route from Central Asia to India’s growing natural gas market began back in 1995. There was little progress, however, until 2005, when the Asian Development Bank gave a grant to finance a feasibility and economic study for the project. All four partners signed a framework agreement in 2008 that confirmed their readiness to take part in TAPI. It was not until 2010, however, that real work began, with Turkmenistan playing a key role. On 13 August, Turkmen President Kurbanguly Berdymukhamedov told his ministers to sign all the necessary agreements before the end of the year. In a telephone conversation with Afghan President Hamid Karzai, they agreed to discuss TAPI behind the scenes at the UN General Assembly meeting in September.

    Meanwhile, experts are sceptical. Mikhail Krutikhin, a partner of RusEnergy, a Russian oil and gas industry analytical company, says that political risks are too high, since the proposed route runs through Kandahar, the troubled Pakistan province partly controlled by Taliban fighters, and crosses into an unstable, Pashtun-controlled area of the country. Moreover, relations between Delhi and Islamabad remain strained. “There were a few times when it seemed the project would get off the ground, but every time serious investors, first and foremost Americans, withdrew because of the significant political risks involved. Even now things haven’t improved one bit,” Mr Krutikhin said. He sees political motives behind the TAPI project’s recent revival. “By getting this project in gear, the participants want to urge the United States to step up its efforts to restore order in Afghanistan,” he said.

    Scepticism regarding whether there are sufficient resources is still another murky cloud looming over TAPI. In 2004, DeGolyer & MacNaughton, an American petroleum consulting firm, audited Turkmenistan’s natural gas reserves, including those in Dovletabad. The report has never been published, yet the company’s representatives and Turkmen officials have stated repeatedly that the reserves would suffice for exports to various markets. Dovletabad, until recently, remained the largest resource base for Turkmen natural gas exports to Russia. A long-term Russian-Turkmen agreement signed in 2003 provisioned for 2010 exports of 80-90 billion cubic metres. The contract, however, was amended following a gas conflict in December 2009, therefore limiting Russia to purchasing just 10 billion cubic metres of Turkmen natural gas in 2010. Accordingly, if Gazprom does not buy more natural gas over the next few years – which the Russian monopoly seems reluctant to do with there being unstable demand in Europe – Turkmenistan could just as well sell its gas to China and Iran, using the recently built pipelines, while India’s hopes for buying Turkmen natural gas don’t seem out of the question either.

    Turkmen gas for Pakistan and India | Oye! Times
     
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  3. Singh

    Singh Phat Cat Administrator

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    This proposal has been floating for years. Two problems Afghanistan, Pakistan.
     
  4. sob

    sob Moderator Moderator

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    This was being promoted by the Americans, but now Obama on full reverse gear this project is as good as dead and buried 6 feet under
     
  5. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Interest in TAPI pipeline project revives

    As the West steps up efforts to enforce sanctions on Iran, the Turkmenistan-Afghanistan-Pakistan- India (TAPI) gas pipeline project, a competitor to the Iran-Pakistan-India gas pipeline, has come back to life.

    “With gas prices falling, the Steering Committee for the TAPI project has woken up. An Indian team to discuss technical issues has just returned to the country,” said government sources.

    “There is some smart gas diplomacy being done by Turkmenistan. They have been talking about pipelines with Europe, but are keen on India. Turkmenistan President Gurbanguly Berdymukhammedov also made this observation during his visit here in May this year,” they added.

    India has also received feelers from the Turkmen President for a summit on the issue. This will be preceded by a meeting of the Oil Ministers of the four participating countries. But before that, officials would have to sort out several issues, including the one raised by Pakistan about securing the pipeline.

    “It is a great asset from the point of view of energy security. But the issue of security will add up to the cost,” said the sources. The issue of security is of concern to the planners because the pipeline's proposed route is near south-west of Afghanistan, where Taliban is active.

    The talks on security will be followed by discussions on the mechanics of construction, a global tender and a business model. These aspects will be grandfathered by the Asian Development Bank, which is taking keen interest in the project. “We have to continue talks on this, because the IPI seems stalled,” the official said.
     
  6. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Turkmenistan guarantees gas, Pakistan security for trans-Afghan pipeline

    ASHGABAT, November 14 (Itar-Tass) -- Turkmenistan guarantees gas and Pakistan pledges security of the prospective trans-Afghan pipeline TAPI (Turkmenistan, Afghanistan, Pakistan and India).

    The promises were made at the eighth meeting of the TAPI working group, which ended in Ashgabat on Friday. The Pakistani delegation presented an action plan, which would keep safe the future gas pipeline. All the four partner states attended the meeting together with a delegation of the Asian Development Bank that sponsors the project, the Turkmen government press office said.

    The largest gas deposit in Turkmenistan, South Yolotan, will be the source of raw materials for the prospected facility. Deposit reserves were certified in 2008 by a British company and presented by Turkmenistan at the eleventh meeting of the pipeline managing committee in September 2010.

    Ashgabat said in October that the appraised reserves grew from 14 to 21 trillion cubic meters in a survey done by Turkmen geologists.

    The working group coordinated drafts of an intergovernmental agreement on TAPI project, a framework agreement on the gas pipeline and gas contracts with Turkmenistan. The documents will be presented for signing at the summit of Turkmenistan, Afghanistan, Pakistan and India due in Ashgabat in December 2010.

    There will be one more meeting of the working group and the 12th meeting of the TAPI managing committee before the summit.

    The negotiations have been on for over 15 years. The pipeline cost is estimated at up to $7.6 billion. The pipeline will have the annual capacity of 33 billion cubic meters.
     
  7. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Afghanistan says confident can secure TAPI gas pipeline

    KABUL, Sept 22 (Reuters) - Afghanistan will secure a planned international gas pipeline through the Taliban heartland by burying sections underground and paying local communities to guard it, the mining minister said on Wednesday.

    Wahidullah Shahrani also said he was confident the project -- valued at $3.3 billion and which would run from Turkmenistan, through Afghanistan and Pakistan to India (TAPI) -- could secure international funding.

    "This huge project is very important to Afganistan," Shahrani told a news conference in the capital, Kabul.

    "We will be earning a transit fee of hundreds of millions of dollars each year, it will create tremendous job opportunities for the people of Afghanistan during and after the construction, and the major population centres along the pipeline will benefit from the gas supplies," he said.

    Turkmen President Kurbanguly Berdymukhamedov has ordered that the project be completed and operational by 2014, one of Shahrani's aides told Reuters, so the four countries are working at top speed to complete preliminaries before seeking investors.

    Berdymukhamedov has also provided audited studies of the gas fields which would supply the pipeline, to reassure investors and the governments involved that there will be enough supply.

    Analysts, however, say the agreement is still at a preliminary stage and that security challenges in Afghanistan and the tensions between India and Pakistan remain an obstacle.

    The project was originally mooted in the early 1990s, but has been stalled by years of conflict and instability in Afghanistan.

    SECURITY CONCERNS

    Turkmenistan, holder of the world's fourth-largest natural gas reserves, is actively looking to diversify energy sales from its traditional market, Russia, and is courting investors from the West, China and other Asian countries.

    The four countries the pipeline passes through signed the framework of an agreement on Monday. [nSGE68J0M0]

    They will have three or four meetings before the end of the year to bash out technical details, and the heads of government of all countries will meet in December to sign an intergovernment agreement giving political impetus to the deal, Shahrani said.

    Energy-hungry Pakistan is pushing hard for a quick implementation of the long-delayed project. [nSGE68K0B9]

    Turkmenistan has previously estimated the cost of the project at $3.3 billion, with initial capacity to transport 33 billion cubic metres a year over nearly 2,000 km (1,250 miles), including 735 km across Afghanistan and another 800 km through Pakistan.

    The pipeline route takes it through areas of extreme instability. In Afghanistan it would snake from western Herat, near the border with Iran, through the southern Taliban heartlands of Helmand and Kandahar.

    The central government has only a tenuous grip on much of this territory, despite the presence of tens of thousands of foreign troops meant to bolster security.

    But Shahrani said he was confident Afghanistan could secure the pipeline. Pakistan, Afghanistan and India are all hungry for more energy but are at times uneasy neighbours.

    "The government will provide security along the line, which in most places will be 2 metres underground," Shahrani said.

    The four countries, which are currently being advised by the Asian Development Bank, aim to set up a consortium of international investors. They are currently working with a transaction adviser, Shahrani's aide said.
     
  8. rcscwc

    rcscwc Tihar Jail Banned

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    Any pipe line passing through Pak is a security risk. Pak can turn off the tap any time and hold India to ransom. Even otherwise its transit charges would be sky high.
     
  9. BangersAndMash

    BangersAndMash Regular Member

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    TAPI gas sale deal likely by end-July - statement


    NEW DELHI | Thu Apr 28, 2011 8:09pm IST


    NEW DELHI (Reuters) - The governments of Turkmenistan, Afghanistan, Pakistan and India are aiming to sign by July 31 a United States-backed deal to purchase gas worth billions of dollars from Turkmen reserves, a statement said on Thursday.

    Oil Minister S. Jaipal Reddy said the pipeline, which is estimated to cost $7.6 billion, was expected to be completed by 2016 but added pricing had yet to be discussed.

    "No deliberation on price at this stage because it is a bilateral issue," Reddy said.

    The "TAPI" pipeline would transport gas over Afghan soil to consumers in India and Pakistan. But building the pipeline through some of Afghanistan's most volatile regions presents a major challenge, adding to the project's other hurdles such as gas pricing and transit fees.

    Parts of the 735 kilometre Afghan stretch will be buried underground as a precaution against attacks, and local communities will be paid to guard it, Afghan Mines Minister Wahidullah Shahrani said in September.

    Financing will also be key. Turkmenistan has previously estimated the cost of the project at $3.3 billion, although various estimates have costs running as high as $10 billion. The project is backed by the Manila-based Asian Development Bank.

    An Indian official said the partner countries had whittled down their differences and only a few issues such as gas pricing and transit fees remained to be resolved.

    Turkmenistan traditionally sends its gas north to Soviet-era master Russia but is becoming an increasingly important supplier to China, Iran and Europe. India and Pakistan, via the TAPI pipeline, would also offer potentially large new export markets.

    A former Soviet republic on top of the world's fourth-largest natural gas reserves, Turkmenistan plans to triple gas output to 230 billion cubic metres (bcm) over the next 20 years. With a population of only 5 million, it will export nearly 80 percent.

    It expects the pipeline, which will run from the Dovletabad field but may later incorporate gas from the massive South Iolotan deposit now under development, to have initial annual capacity of 33 billion cubic metres.

    India and Pakistan have expressed interest in buying up to 70 bcm annually, and the pipeline's capacity could be expanded.

    India, Asia's third-largest economy, relies on imports for 70 percent of its huge energy needs. Natural gas currently accounts for about 10 percent of its energy supplies and much of this is imported.


    http://in.reuters.com/article/2011/04/28/idINIndia-56637620110428
     
  10. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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  11. trackwhack

    trackwhack Tihar Jail Banned

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    Dont trust the Pukes. Walk away from this and put the money on the undersea pipeline from Qatar.
     
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  12. Ray

    Ray The Chairman Defence Professionals Moderator

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    At best, a pipedream!
     
  13. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    I hope this TAPI file gets buried in the deepest recesses of some babu's office, and never surfaces again. :frusty:
     
  14. trackwhack

    trackwhack Tihar Jail Banned

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    Per the costs of the Nords Pipeline, an undersea pipeline from Iran or Oman to India will be a $10 billion investment. TAPI pipeline will be at least 8 billion of which less than 20% of the cost will be shared by Pakistan. After that we have to forever keep paying them transit fee. How does it make any sense to go for it?

    Further Iran and Oman are far more friendlier countries and the security risk of the TAPI has not even been considered. The Pukes can switch it off anytime they choose and we can do nothing.
     
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  15. Tronic

    Tronic Stars and Ambassadors Stars and Ambassadors

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    If they cut off our gas, we cut off their water.

    That aside, any government which goes through with this will fall coming elections. Though, the UPA government may still go ahead with it, because I believe they know that they will be falling in the next elections anyways, TAPI or no TAPI.
     
  16. Param

    Param Senior Member Senior Member

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    They don't even have to switch it off directly, they'll claim some "non state actors" blew the pipeline.
     
  17. trackwhack

    trackwhack Tihar Jail Banned

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    Impossible sir. Turning off water will take 5 years of water diversion projects. Turning off gas will take 5 seconds. TAPI is a stupid stupid idea.
     
  18. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    India stepping on the gas to finalise TAPI pact - Hindustan Times

    India is speeding up its efforts to sign an agreement for importing gas through the US-backed $10-billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline.

    At the same time, it is going slow on the Iran-Pakistan-India (IPI) project that would have moved huge quantities of gas
    from the south Pars field in the Persian Gulf into India. Some government officials see this as an indication that India is toeing the US line and reducing its energy dependence on the sanctions-hit Iran.

    The urgency on the part of the government is palpable. The petroleum ministry recently wrote to the National Security Council (NSA) secretary Lata Reddy on April 2 that “There is an urgency for signing the gas sales and purchase agreement (GSPA) under the TAPI gas pipeline project”.

    A cabinet note is ready, and when it gets the nod, India will sign the GSPA for importing gas under this project, the petroleum ministry officials confirmed.

    Both the IPI and TAPI projects have been under discussion since the ’90s.

    “While it is difficult to say if TAPI will see the light of the day, but IPI has certainly been put on the backburner,” a senior official said on condition of anonymity. “Stepping up efforts on the TAPI project is a clear indication that New Delhi is following the US’ anti-Teheran stand.”

    India and other south Asian nations have already reduced their import dependence on Iranian crude oil by over 20%.

    India has slashed its import plans from 18.1 million tonnes of crude oil to 14 mtpa.

    “Both IPI and TAPI were high on the agenda of UPA-I and we cannot allow outside powers to determine our economic requirements, our foreign policy priorities or our national security needs,” said former petroleum minister Mani Shankar Aiyar.

    On its part, the US has welcomed India’s renewed interest in TAPI. Senior advisor in the US department of state Daniel Stein said at the 7th Asia Gas partnership summit here recently: “TAPI fits into the US government’s Eurasian energy policy meant to assist Europe and Asia in their quest for energy security.”
     
  19. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Cabinet approves plan for Turkmenistan gas imports

    Cabinet approves plan for Turkmenistan gas imports - The Economic Times
     
  20. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    The proposed 1,680-km TAPI will have a capacity to carry 90 mcmd gas for a 30-year period and will be operational in 2018

    Cabinet nod for $7.6 bn TAPI gas pipeline - Economy and Politics - livemint.com
     
  21. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    India to sign GSPA for Turkmenistan Gas on Wednesday; landed price of TAPI gas expected around $11.5/unit

    India to sign GSPA for Turkmenistan Gas on Wednesday; landed price of TAPI gas expected around $11.5/unit - The Economic Times
     

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