ISLAMABAD, Feb 16: Turkmenistan will provide sovereign guarantees to Pakistan to supply 3.2 billion cubic feet of gas per day (BCFD) for 30 years.
This was decided during a ministerial meeting between TAP (Turkmenistan, Afghanistan and Pakistan) held in Ashgabat on Feb 14-15, a government official told Dawn on return from Turkmenistan.
The accord has partly removed uncertainty about availability of gas reserves in Turkmenistan required for the economic viability of the multi-billion dollar TAP pipeline.
The meeting resolved that the countries would now start talks on gas pricing. The talks are likely to be held here in April.
Pakistan has been stressing that unless independent certification of gas reserves in Daulatabad are made available and enough gas is dedicated for the purpose the plan cannot move forward as no investor, contractor or financial institution is ready to take part in it.
The official said that the issue came up for discussion and Turkmenistan agreed to provide the required sovereign guarantees.
An official announcement issued here said that Turkmenistan would supply 3.2 BCFD to Pakistan for 30 years. A Memorandum of Understanding to this effect was signed on Wednesday at the conclusion of the ministerial meeting.
Petroleum and Natural Resources Minister Amanullah Khan Jadoon, his Turkmen counterpart Gurbanmurat Atayev and Afghan Minister for Mines and Industries Mir Mohammad Siddique led their delegations at the talks.
Indian State Minister for Petroleum and Natural Gas Dinsha J. Patel attended the meeting as an observer while energy specialist Dan Million represented the Asian Development Bank (ADB).
The meeting deliberated upon the issues of gas availability, security, route, pipeline structure, pricing and financial aspects of the project. The Indian side expressed willingness to join the project.
The meeting, which also considered the feasibility report produced by the ADB, expressed satisfaction over the progress and agreed to execute the project as early as possible.
It was decided to hold a technical experts’ meeting followed by a TAP ministerial meeting in Islamabad in April to sign the gas pricing agreement.
Mr Jadoon, on his return from Ashgabat, said that the project would help bring the people of these countries closer.