The proposal on a gas pipeline from Turkmenistan is making quiet advances over the one planned from Iran with project sponsor Asian Development Bank piloting comprehensive agreements for signing next month.

The ADB has proposed to hold the Steering Committee Meeting on November 28-29 at Islamabad to include India in the Turkmenistan-Afghanistan-Pakistan pipeline (TAPI) project, with the four nations signing Heads of Agreement (HoA) and the Gas Pipeline Framework Agreement (GPFA) that would formalize their path ahead.

And unlike the one-step-forward-two-steps-back deliberations going on between Iran and India over the Gas Sales Purchase Agreement (GSPA) or the project execution, or between India and Pakistan over pipeline tariff and transit fee, the drafts submitted by ADB clearly spell out the role and responsibility of each signatory.

Unlike Iran, which is yet to earmark a dedicated field for feeding the Iran-Pakistan-India pipeline, ADB’s HoA specifies that Turkmenistan will provide 34.26 trillion cubic feet of gas from its Daulatabad fields to meet Pakistan’s need of 16.95 TCF, and India and Afghanistan’s joint demand of 17.31 TCF over 30 years.

And by December 31, Turkmenistan will provide the three buyers certification from an international firm “confirming availability of adequate undedicated gas reserves in the field,” says the HoA.

TAPI suits New Delhi better as it provides more gas upfront. While Iran is offering a flat 30 million standard cubic metres per day throughout the tenure, TAPI provides India 40 MSCMD during the first four years and 31 MSCMD in next 26 years when the country’s domestic gas would flow from the Krishna-Godavari finds.

... contd.