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Old 08-28-2010, 05:29 AM   #1 (permalink)
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Default Is TAPI through Iran possible?

Is TAPI through Iran possible?


EDITORIAL (August 28 2010): Pakistan has proposed to a visiting delegation from Turkmenistan, led by Rashid Ovezgeldievich, Vice Premier and Foreign Minister, to consider bypassing strife-torn Afghanistan and instead, lay the gas pipeline under Turkmenistan-Afghanistan-Pakistan-India (TAPI), through Iran, and connect it to the proposed Iran-Pakistan gas pipeline.

This would, of course, necessitate a change of name to TIPI. From a logistical and tactical perspective, this is a good idea as one of the major impediments to the TAPI had been concerns by the energy-surplus Turkmenistan, as well as the energy deficient Pakistan and India, of the high cost of risk associated with possible attacks on the pipeline by the Afghan insurgents.

However, bypassing Afghanistan would, without doubt, create a host of diplomatic concerns that may be difficult, if not impossible, for three of the four TIPI countries to withstand. The exception of course would be Iran that is already sanctioned by the international community led by the United States.

It is no secret that the US has been supporting the TAPI and has been opposed to the Iran-Pakistan pipeline. Considering that these two projects the (TAPI and IP) have been on the drawing board for over a decade at least, shows that both suffer from serious impediments. It is also no secret that Pakistan and India are energy-starved countries, though the case of Pakistan is considerably worse, thus both countries would welcome access to a reliable energy source.

It is also evident that Turkmenistan would welcome any increase in its revenue through sale of its surplus energy. Iran, too, would benefit as it would charge the end-consumers of Turkmen gas a transit fee, which is likely to run into millions of dollars. Thus, it is indeed a win-win situation for all participating countries, though perhaps India may revisit its support in light of what it may consider are its security concerns, as the pipeline would have to be laid through Pakistan in order to reach India.

And what would be the clincher of course is that the US would almost certainly not support the TIPI. Rerouting the TAPI is, therefore, quite obviously a naive proposal that fails to take account of the existing geopolitical concerns. So where does Pakistan stand today? Importing gas through laying pipes is one way, however, the process of agreement between the participating countries has been slow and arduous and many an analyst has pessimistically stated that he/she would believe that these projects are doable only when the pipes begin to be laid.

The other option is to seek assistance from abroad to increase domestic generation capacity. The government of Pakistan has been unable to convince the United States to extend a nuclear deal similar to what was offered to, and accepted by the Indian government, hence our need to open new frontiers of energy sources is massive.

At the same time, it is evident that our energy sector has been badly managed, not only in terms of the failure of the Musharraf government to invest adequately in energy generation for over eight years, but also in terms of failure to resolve the inter-circular debt, as well as the huge transmission losses. Foreign donors, including the United States, have agreed to limited support for our energy sector. There is, therefore, an urgent need to clean our own house first by eliminating the circular debt, once and for all, and to bring transmission losses to the regional average which, in turn, may well provide the impetus to foreign donors to extend support to build large and expensive dams.

Business Recorder [Pakistan's First Financial Daily]
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Old 08-28-2010, 05:31 AM   #2 (permalink)
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Default Re: Is TAPI through Iran possible?

Pakistan wants to get Turkmen gas through IP pipeline

ZAFAR BHUTTA

ISLAMABAD (August 26 2010): Pakistan has proposed to Turkmenistan to supply gas via Iran by using the Iran-Pakistan (IP) gas pipeline, instead of laying a pipeline through the war-torn Afghanistan, under swap arrangement, Business Recorder has learnt. Experts of the two countries will review the proposal in the 11th Steering Committee meeting on TAPI gas pipeline project scheduled for September 15-20 in Ashgabat, Turkmenistan.

Pakistan had proposed a swap arrangement during a meeting held between Minister for Petroleum Naveed Qamar and Deputy Chairman of the Cabinet of Ministers of Turkmenistan and Minister for Foreign Affairs Rashid Meredov who was heading the delegation here on Wednesday. Under this arrangement, imported gas volume agreed between Pakistan and Turkmenistan will be supplied to the northern provinces of Iran in lieu of which Iran will supply equivalent gas volume through the IP pipeline to Pakistan.

Talking to Business Recorder, Secretary, Petroleum, Kamran Lashari said that Pakistan had asked Turkmenistan to submit certification of gas reserves. Lashari said that experts' meeting will be held in Ashgabat on September 15 to sort out technical issues regarding the TAPI gas pipeline project. He said that Pakistan wants to resolve all technical issues on TAPI gas pipeline project by December end.

Meanwhile, according to an official statement, the Federal Minister for Petroleum and Natural Resources Naveed Qamar underlined the need for fast tracking Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project and putting in place effective institutional mechanism for bilateral and multilateral progress on the matter.

Qamar made these remarks while talking to Rashid Meredov, Deputy Chairman of the Cabinet of Ministers of Turkmenistan and Minister for Foreign Affairs, who was heading the delegation from Turkmenistan that called on him here on Wednesday. Qamar, congratulating his counterpart on huge discovery of natural gas in Turkmenistan, said that both countries could benefit from each other's resources and technical expertise to a great extent.

The Minister, assuring assistance from his side, said that Pakistan was fully committed to early implementation of the TAPI project and considered that the collective and bilateral matters must be streamlined on priority basis to foster progress and prosperity between the two countries.

The two sides reviewed the status of signing of the Heads of Agreement (HoA) and negotiations on the Gas Sales and Purchase Agreement (GSPA) between Pakistan and Turkmenistan and also discussed possibly early commencement of the 11th Steering Committee meeting and holding the same in Ashgabat. Meredov said that he looked forward to further co-operation in the energy sector between the two brotherly countries and expediting the projects underway. The meeting was attended by Secretary, Petroleum and Natural Resources, Kamran Lashari, and Hilal A Raza, MD Inter State Gas Systems Ltd, and others.

Business Recorder [Pakistan's First Financial Daily]
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Old 08-29-2010, 05:58 AM   #3 (permalink)
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Default Re: Is TAPI through Iran possible?

'India delaying finalisation of TAPI deal'


ISLAMABAD (August 29 2010): Pakistan has accused India of delaying the finalisation of the deal on Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, to cost over $7.5 billion, sources close to Hilal A Raza, Managing Director of Inter State Gas System (ISGS), told Business Recorder.

India has already stepped out of the Iran-Pakistan (IP) gas pipeline deal after getting civil nuclear technology from the United States (US), and now is delaying the TAPI gas pipeline deal. "India's indecisiveness regarding TAPI gas pipeline deal is a major hurdle in implementing the project", Pakistan's officials conveyed this concern to a visiting Turkmenistan delegation, led by Deputy Chairman of the Cabinet and Minister for Foreign Affairs Rashid Meredov on Wednesday.

"We are ready to provide maximum co-operation in transmitting gas across the border (to India)," Pakistan side stated, adding that "we must expedite process of finalising a deal on TAPI through establishing effective institutional mechanisms". Pakistan has proposed to Turkmenistan to supply gas via Iran by using the Iran-Pakistan (IP) gas pipeline, instead of laying a pipeline through the war-torn Afghanistan, under swap arrangement.

Experts from both Pakistan and Turkmenistan will review the proposal in the 11th Steering Committee meeting on TAPI gas pipeline project scheduled for September 15-20 in Ashgabat, Turkmenistan. Under this arrangement, imported gas volume, agreed between Pakistan and Turkmenistan, will be supplied to the northern provinces of Iran, in lieu of which Iran will supply equivalent gas volume through the IP pipeline to Pakistan.

Turkmenistan delegation said that Pakistan was fully committed to early implementation of the TAPI project and considered that the collective and bilateral matters must be streamlined on priority basis to foster progress and prosperity between the two countries. The two sides will also review the status of signing of the Heads of Agreement (HoA) and hold negotiations on the Gas Sales and Purchase Agreement (GSPA) in the Steering Committee meeting scheduled to meet in Turkmenistan next month.

Business Recorder [Pakistan's First Financial Daily]
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Old 09-02-2010, 07:22 AM   #4 (permalink)
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Default Re: Is TAPI through Iran possible?

Turkmenistan offers new gas supply source


ISLAMABAD (September 02 2010): Turkmenistan, which failed to submit third-party certification of Dauletabad gas field reserves, has now offered a new supply source, Osman/ Yolatan gas field, which has raised serious concerns in Pakistan, sources exclusively told Business Recorder. Turkmenistan gas reserves are estimated to be around 14 trillion cubic metres (TCMs).

Pakistan has requested Turkmenistan to provide official confirmation of gas reserves, through third-party, committed supply under TAPI gas pipeline project. Sources close to Inter State Gas System (ISGS) Managing Director (MD) Hilal A Raza told Business Recorder that Turkmenistan had proposed to change gas supply source to Osman/Yolatan gas field during the meeting of Technical Working Group (TEG) on August 4-6, 2010 at Ashgabat. The newly proposed field is 150 km to the north of Dauletabad. However, discussions till recently under the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project had focused on supply from Dauletabad gas field.

The Steering Committee on TAPI project will hold meetings in Ashgabat on September 15-20 to resolve the issue of alternative gas supply. "While we are awaiting third-party certification of the Turkmen gas reserves we would like to know the reasons for the change in the gas supply source, which is a concern for us," Pakistan side gave this message to the visiting Turkmenistan delegation last week.

Petroleum Ministry Secretary Kamran Lashari confirmed that Turkmenistan had proposed an alternative source of gas supply. "We may accept alternative source of gas supply if Turkmenistan provides third-party certification of gas reserves," he said, adding that the issue would be discussed in the experts' meeting to be held in Turkmenistan.

Sources said that due to the security situation in Afghanistan, an alternative route to lay gas pipeline along the Iran-Afghan border, all the way to Gwadar, was under discussion with Turkmenistan. Pakistan has submitted a concept paper to the Turkmen side on this. Both sides have formed a Task Force to resolve this issue, but no progress has been made so far. The Task Force will discuss the issue in detail during the upcoming meeting of the steering committee. The TAPI pipeline would pass near Reko Diq copper mines project in Balochistan, Chaghi area, and thence onward to Gwadar port.

Business Recorder [Pakistan's First Financial Daily]
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