July 4, 2003	Friday	Jumadi-ul-Awwal 3,1424

KARACHI, July 3: Turkmenistan has assured Pakistan and Afghanistan that Daulatabad, the fifth largest gas field in the world, will remain exclusively available for the Trans-Afghan Pipeline (TAP).

This was assured by Turkmenistan deputy prime minister Yolly Gurbanmuradov to the delegates from Pakistan and Afghanistan, thus dispelling the impression that signing of long-term gas supply agreements with Russian and Ukraine may not leave enough gas to feed TAP.

In the sixth steering committee meeting held in Ashkabad, Mr Gurbanmuradov, who is responsible for gas and oil sectors, said TAP continued to be top priority project for Turkmenistan.

According to a press release of the SSGC issued here on Thursday, Russian and western media had given the impression that Turkmenistan might not be able to fulfil its commitment towards TAP after signing 25 years and 30 years agreements, respectively, with Russia and Ukraine for supply of gas.

Russia may begin buying up to 50 billion cubic metres of gas from 2007 onwards while Ukraine, currently buying 40 billion cubic metres per annum, may increase purchase volumes up to 50 billion cubic metres in the next five years.

The proposed $2.5 billion pipeline project will transport up to 30 billion cubic metres of natural gas annually from the Daulatabad fields in southeast Turkmenistan to consumers in Afghanistan, Pakistan and possibly India. It has significant potential to improve stability and raise living standards in South and Central Asia.

Meanwhile, top Pakistani experts have reiterated that Trans-Afghan Pipeline (TAP) is perfectly feasible without Indian participation.

“TAP is profitable without Indian participation,” the experts said in the sixth steering committee on TAP held in Ashkabad.

The experts, however, encourage India’s participation as it will provide additional incentives to project sponsors.

“Pakistan can easily absorb enough volumes from TAP to make it financially feasible,” additional secretary, Ministry of Petroleum, Naim Baig, and managing director, Inter State Gas Systems, Munawar Baseer Ahmed, said in the meeting.

By the time TAP comes into operation — Pakistan will be able to consume sufficient volumes from the project to make it feasible in view of demand and supply of gas.

An SSGC press release said Pakistan would announce its exact requirement of natural gas in the next TAP steering committee meeting to be held in September or October.

Munawar Ahmed said that KESC had converted 100 per cent to gas fired systems, thus resulting in saving of $10 million. Other power generating companies are also being converted into gas.

In the fifth steering committee meeting held in Manila, it was decided that Turkmenistan, Pakistan and Afghanistan would go ahead with the 1,600-km gas pipeline project even if India decided not to participate in the project.

However, Pakistan, Turkmenistan and Afghanistan formally signed a joint letter in the Manila meeting inviting India to participate in the project.

The oil and gas ministers of the three countries who attended the fifth steering committee meeting of TAP project signed a letter inviting India to participate as both investor and a major purchaser of gas.

The letter also requested the Indian government to invite the Asian Development Bank to make a presentation on the project and related issues, including the approach towards mitigating risks and security concerns related to the project.

The steering committee observed that it would be in the interest of regional cooperation for the Indian government to participate in the gas project.

In the past one-and-a-half years, five steering committee meetings and two meetings of heads of the governments had been held to discuss the project reflecting strong commitment of the participating governments.