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ISLAMABAD: Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said on Tuesday that Turkmenistan would invest around $25 billion to deliver around 3.2 billion cubic feet per day (BCFD) of gas, for 25 years, to three energy hungry countries — Afghanistan, Pakistan and India — from December.

Addressing a news conference here, the minister claimed that the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project was the largest yet project in the world. It is one of the achievements of the PML-N government that a project for 25 years is being taken up with the commitment of the Turkmenistan government to make such a huge investment.

He said the project was previously hampered by security situation in Afghanistan and Turkmenistan laws which did not allow foreign companies to develop its onshore oil and gas resources.

The Turkmenistan government had decided to develop Gylkynish and adjoining gas fields itself with $10-15 billion that would have around 21 trillion cubic meters of gas that was larger than Pakistan’s all oil and gas resources put together.


Shahid Khaqan Abbasi says TAPI gas pipeline is the largest project of its kind in the world


He said Turkmenistan would also be responsible for around $10 billion investment required for 1,680-kilometre pipeline of 56-inch diameter for which it had already constituted a consortium with some Japanese companies. The state-run Turkmengaz will be the consortium leader.

The minister said the gas sale and purchase agreement had already been signed in 2013 that set the pricing mechanism under which gas price at Turkmen border would be around 20 per cent less than that of Brent crude. At current rate, the gas sale price would be around $3.2 per million British Thermal Unit (MMBTU). It will finally translate into $6.5 per MMBTU after inclusion of tolling tariff and transit fee to be paid to Afghanistan. This would be slightly less than the proposed Iranian gas rate because of larger quantities.

He said Pakistan and India each would get 1.325 BCFD of gas while Afghan share had been set at 500 MMCFD. Under the agreement, Turkmensitan is to achieve financial close for the project by December next year for simultaneous completion of gas field development and pipeline construction in three years i.e. by December, 2019.

Published in Dawn, December 16th, 2015


Comments (13) Closed



OBSVR Dec 16, 2015 07:21am

How much money will be made by big Tuna?

MS Dec 16, 2015 07:33am

We fail to understand as to why this government insists on a longer and more expansive pipeline route, which by the way will have to go thru the unstable territory of Afghanistan and will be subject to additional transit fee. The government is well advised to spine up and start working on the Iran / Pakistan pipe line. Iran has already finished it's portion and now waiting for Pakistan. It will be easy to get it financed thru Russia / China rather then western institutes with so many strings attached. Additionally, there will no chance of blockading of this pipeline.

The next thing we will know is Afghan government will tie gas transit to Pakistan with land transit for India to Afghanistan.

javed Dec 16, 2015 07:47am

Yes more money will be available for you to gulp up.

ashraf Dec 16, 2015 07:51am

With all the good intention this project will face many uncertainties, not least Turkmanistan's ability to finance in such a short time...the price advantage is diluted in transit fees to Afghanistan.. The other option from Iran has less obstacles & can be implemented faster.. One hopes for both the projects to materialize & this region to weave their economic future together in a win win scenario..

rana1 Dec 16, 2015 08:17am

@OBSVR ......this does not benefit one party,we have Afghanistan,India and Turkmenistan and the awaam.

Amin Dec 16, 2015 09:23am

We need urgently Wazir for Groundbreaking and Ministry

Hamid shafiq Dec 16, 2015 09:57am

Just sweet dreams for Pakistani nation. imagine the length of pipe line which lay between four countries and only security of gas pipe line require a billions dollars for safety and imagine in Afghanistan where no law no control then i do not why our leaders not make a real project for people.

rich Dec 16, 2015 10:20am

@ashraf With all the good intention this project will face many uncertainties, not least Turkmanistan's ability to finance in such a short time...the price advantage is diluted in transit fees to Afghanistan.. The other option from Iran has less obstacles & can be implemented faster.. One hopes for both the projects to materialize & this region to weave their economic future together in a win win scenario..

I agree with all the above points except transit fee issue because as fr as pakistn is concerned afgnaistan will charge 200 to 250 million dollas per year as transit fee but on the other hand pakistn will charge india 200 to 250 million dollar for the same so pakistn looses nothong in transit, afghanist gains 250million and india pays 250 million for transit guess india can afford it

M.ASIF Dec 16, 2015 10:52am

Wish I may live to witness Pakistani nation may enjoy prosperity some day

Imtiaz Ahmad Dec 16, 2015 10:58am

Biggest project for Gas is Alaska LNG and not this one

neutral Dec 16, 2015 11:30am

Never believe this Manzoor Watoo of PML(N).

Shahid Dec 16, 2015 12:18pm

I am just wondering, while the minister is very well in position to disclose price of the gas at this initial stage of the project, why is the price of imported LNG being hidden from the nation even after such a huge struggle by the opposition and the media to get the knowledge of it?

Salma Shahid Dec 16, 2015 12:30pm

How does it translate from 3.2 USD per MMBTU to more than double at 6.5 USD? The transit fee which we will pay to Afghanistan is the same which we will get from India, meaning we are at about neutral (zero transit fee). Can some one please explain how the price gets doubled from Turkmenistan borders to it reaches Pakistan when we don't really pay any transit fee? Secondly, if the Turkmenistan border price of 3.2 USD is 20 % lesser than Brent crude oil price then it surely means that the delivered price of $6.5 is much higher ( about 165%) than crude oil prices.