Cos unwilling unless they get share in Turkmenistan gas fields
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project has hit a major roadblock with no international pipeline company willing to participate in the project unless they get a share in Turkmenistan’s rich gas fields.
The four nations recently held roadshows in New York, London and Singapore to attract firms that can lay and operate the 1,680-km cross-country project, but no international pipeline operating company turned up.
TAPI is the first transnational line where the Turkmenistan has already signed Gas Sale and Purchase Agreements (GSPA) in May this year. The four nations are inviting firms to become a consortium leader, who will be responsible for the building of the pipeline.
?If the consortium is put in place by 2014, production of gas can start in 2017 or 2018,? an official said.
The US is backing the TAPI pipeline as an alternative to the India-Pakistan-Iran (IPI) pipeline that has been stalled for quite some time now.
The TAPI pipeline will have a capacity to carry 90 million standard cubic metres (mscmd) of gas a day for a 30-year period and is likely to become operational by 2018. India and Pakistan would get 38 mscmd each while the remaining 14 mscmd will be supplied to Afghanistan.
At bilateral meetings with Indian oil minister, both parties discussed the opportunities and strengthening ties with the country in the energy sector. ?We want India to increase presence in Turkmenistan soil,? Kakageldy Abdullaev, acting minister of oil and gas industry and mineral resources of Turkmenistan, said.
Turkmenistan has also invited Indian companies to explore hydrocarbon at Caspian offshore region.
?Many international companies are already working. We want Indian companies to participate too. ONGC Videsh and GAIL have shown interest,? Abdullaev said after the bilateral meeting at the Petrotech 2012 conference. Bangladesh has also shown interest to join the proposed TAPI pipeline project.
