The Indian Cabinet Thursday gave its approval to sign the Gas Sale and Purchase Agreement or GSPA with TurrnenGas, Turkmenistan's national oil company, for the $7.6 billion Turkmenistan-Afghanistan-Pakistan-India or Tapi Gas pipeline project.
Unlike the Iran-Pakistan-India (IPI) pipeline project, TAPI has been supported by the US. A steering committee meeting of the member countries is expected to take place in Turkmenistan soon. The import of gas is scheduled to commence after five years of the signing of GSPA.
The project envisages the construction of 1680 Km in long pipeline, which would originate from Turkmenistan, travel through Afghanistan and Pakistan, before entering India. It would carry 90 mmscmd of gas, of which 38 mmscmd each for India and Pakistan and the remaining 14 mmscmd for Afghanistan. The Pipeline is expected to be operational in 2018 and supply gas over a 30 years period.
Member countries of the Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline Project have agreed transit fee which is expected to be about 50 cents. The transportation charges will be finalized when the project gets implemented by the consortium and all costs are known, sources close to the development said.
The source of the gas is the South Yoiotan Osman field, recently renamed Galkynysh, which has been certified by a reputed international consultant to be holding proven recoverable gas reserves of 16 trillion cubic metres.
The provisions of the GSPA have been structured to protect India's commercial interests as India is at the tail end of the pipeline. Afghanistan and Pakistan have committed to the safety and security of the pipeline through the Inter-Governmental Agreement and the Gas Purchase Framework Agreement signed among the four countries in December, 2010.
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