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Tuesday, October 19, 2021

Pakistan renegotiating gas price with TAPI Company

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Pakistan is in process of renegotiating gas price with TAPI Project Company Limited (TPCL), following which a groundbreaking ceremony would be held for Pakistan section of the multi-billion dollar trans-country gas pipeline in Chaman.

A senior Petroleum Ministry official said the government is keen to have a new compatible gas price under the Turkmenistan-Afghanistan-Pakistan-India (TAPI) project. Accordingly, renegotiation for the gas price will take place with the TAPI Company before groundbreaking of the pipeline.

The official said that Pakistan would complete the phase-one of the project within a period of 30-month after initiating the ground work for laying the pipeline from Chaman to Multan via Quetta and Dera Ismail Khan. The project is consisted of the two phases. In the first phase, there will be free flow of gas in the pipeline which would be completed at an estimated cost of five to six billion dollars. In second phase, compressor stations to be installed at 1.9 to two billion dollars.

UP TO PAK-INDIA BORDER: Under the project, a 56-inch diameter 1,680 kilometers pipeline, having capacity to flow 3.2 billion cubic feet per day (bcfd) gas, would be laid from Turkmenistan through Afghanistan and Pakistan up to Pak-India border by the year 2022. As per the agreement, Pakistan and India will be provided 1.325 billion cubic feet per day gas each and Afghanistan will be getting the share of 0.5 bcfd gas.

The official said the member countries had signed an intergovernmental agreement and the Gas Pipeline Framework Agreement in 2010. He said that Turkmenistan had already completed the construction work on its section, while Afghanistan also performed groundbreaking last year.

Pakistan is regularly contributing its committed share to carry out the project activities, which made significant progress during the current year. The official said that the technical consultant of the project had been appointed and the Front End Engineering and Design (FEED) completed for Pakistan section of the project.

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Staff Writerhttps://www.thewallet.com.pk
The Wallet Team produces these stories.
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