ISLAMABAD, Dec 8: The tri-nation ministerial steering committee on $2.6 billion Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline project on Monday rejected a feasibility study conducted by the project consultants and called for “redoing” the whole exercise, Dawn has learnt.

The meeting concluded on a mixed note on first day of the deliberations and would remain in session on Tuesday.

Pakistan’s Minister for Petroleum and Natural Resources Nouraiz Shakoor Khan, Turkmenistan Deputy Prime Minister Yolly Gurbanmuradov, Afghanistan Mines and Industry Minister Dr Mehfooz Nedai and ADB representative Najeeb Jung led their respective delegations.

A participant of the meeting told Dawn that Turkmenistan sought time till June 2004 to complete certification of Daulatabad gas field reserves because the certification exercise was currently in progress.

The Turkmen delegation assured the meeting that gas reserves were higher than original estimates because some new discoveries had also been made in the vicinity of Daulatabad gas field in the recent past.

He said Petroleum Minister Nouraiz Shakoor expressed displeasure over the findings of the feasibility study of the project consultant, Penspen Consulting of the UK, and his objections were supported by Turkmenistan and the ADB as well.

The consultant was required to present two different scenarios of the TAP project — gas pipeline prospects with and without the involvement of India. The consultant completed its study on the prospects of the pipeline project up to India and did not do much on the feasibility in case India declined to come on board.

This was clear violation of the minutes of the previous meetings and TORs of the consultant. The previous steering committee meeting had clearly mentioned that the consultant would carry out the feasibility study through frequent consultations with authorities in Pakistan.

The consultant visited Pakistan only once and held a 30-minute meeting with a joint secretary of the petroleum ministry, the meeting was informed.

The consultant’s feasibility covered project costs from Turkmenistan to India via Lahore, while Pakistan required gas in Multan and in case India is not ready to be part of the project then this cost estimates would also become irrelevant, sources said.

“(The) ADB was also supportive on this issue and agreed that basis of the feasibility study was not as per the TOR and required to be redone,” a participant of the meeting told Dawn.

These observations would be made part of the protocol to be signed at the conclusion of the two-day meeting and then made public at a press conference on Tuesday, he said.

The project cost would be $2.6 billion without India and $3.2 billion if the pipeline goes to New Delhi as well, the sources said.

When contacted petroleum secretary M. Abdullah Yousaf said Turkmenistan was currently in the process of certification of the reserves and would submit a report later.

He said Pakistan’s requirement for imported gas had slightly declined beyond 2010 because of some additional gas finds in the country. He said the country would need around 2.5 bcfd of gas by 2012 and shortage would keep on increasing till 2025.

He said the feasibility study of the consultant had revealed that Afghanistan would require a very limited volume of gas after 2010.

The sources said the Afghan representative also submitted its gas requirements amounting to 40-50 mmcfd (million cubic feet per day) in 2010. Afghanistan assured the meeting of providing security to the pipeline in its territory but could not justify how it would guarantee the security given a very volatile law and order situation in the country.

Meanwhile, an official statement said the meeting reviewed the updated progress on TAP and expressed satisfaction on the pace of efforts being made by the member states and the ADB for the early implementation of the project.

The meeting discussed the issue of gas reserves certification for Daulatabad gas field of Turkmenistan, demand for natural gas in Pakistan, anticipated utilization of natural gas in Afghanistan and other possible sources for utilizing TAP gas. The meeting also considered the draft feasibility study report presented by Penspen, the statement said.

Petroleum Minister Nouraiz Shakoor said the 7th meeting of the steering committee on TAP gas pipeline project “is taking place at crucial and decisive juncture”. He reiterated Pakistan’s full support for the ADB’s coordinated efforts on TAP and assured the participating countries of all out cooperation to come up with their expectations with regard to progress of the multi-beneficial regional pipeline project.