Pakistan is Negotiating with Tapi Co On Gas Price

Pakistan is in the process of renegotiating gas cost with Tapi Project Company Limited (TPCL), after which building work will start on Pakistan’s part of this multibillion-dollar transnational gas pipeline in Chaman.

“We are eager to have a brand new compatible gas cost beneath the Turkmenistan-Afghanistan-Pakistan-India (Tapi) job.

Accordingly, renegotiations for your gas cost will take place together with TPCL prior to start of work on the job in Pakistan,” a senior official agreeing to petroleum-sector advancements told APP on Monday.

He voiced optimism that Pakistan would finish phase-I of this job within 30 months after initiating preparation for laying the pipeline from Chaman into Multan via Quetta and Dera Ismail Khan.The job is consisted of 2 phases. At the initial phase, there’ll be free stream of gas in the pipeline, and this is finished at an estimated price of $5-6 billion.

At the next phase, compressor stations will be installed at a price of $1.9-2 billion.Under the job, ” he said, a 56-inch diametre pipeline spread across 1,680 kilometres and having capacity of transmitting 3.2 billion cubic feet every day (bcfd) of gas could be laid from Turkmenistan through Afghanistan and Pakistan into the Pakistan-India boundary from the year 2022.As per the Tapi agreement, Pakistan and India will likely be supplied 1.325 bcfd of gas each and Afghanistan will get 0.5 bcfd.

Answering a query, the official said member states of this job had signed an intergovernmental agreement and a gas pipeline framework agreement on December 11, 2010.He said Turkmenistan had already finished building work on its part of the pipeline while Afghanistan had also played groundbreaking of this job last year.

He worried that Pakistan was regularly expanding its dedicated share to the job activities, which made significant advances from the present year, adding a technical consultant had been appointed and the front-end technology layout had also been completed to Pakistan’s part of the undertaking.

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