Tuesday, December 21, 2010

TAPI pipeline deal to end gas crisis in Pakistan

 TAPI pipeline deal to end gas crisis in Pakistan
 STAFF REPORT ISLAMABAD: In a major development towards resolving the natural gas shortage, Pakistan has finally joined Turkmenistan, Afghanistan and India in signing the long-awaited over $7.6 billion dollars gas pipeline project to help it meet its sharply rising industrial and domestic demands. The agreement was signed last week in Ashghabat.

According to the project, the 1,680 km long Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline backed by the Asian Development Bank will bring 3.2 billion cubic feet of natural gas per day (bcfd) from Turkmenistan’s gas fields to Multan in Central Pakistan and end in the northwestern Indian town of Fazilka.

Construction of the pipeline is likely to commence soon and will be completed by 2013-14. The project would help overcome Pakistan’s growing energy crisis that has caused electricity shortages and protests across the country.

Under the agreement Afghanistan’s share would be 500 million cubic feet per day (MMcfd), Pakistan 1,325 MMcfd and India 1,325 MMcfd.

The demand for natural gas in Pakistan has increased by almost 10 percent annually from 2000-01 to 2007-08, reaching around 3,200 MMCFD, against the total production of 3,774 MMCFD.

During 2008-2009, the demand exceeded the available supply, with production of 4,528 MMCFD against a demand for 4,731 MMCFD, indicating a shortfall of 203 MMCFD.

The project was initially designed to provide Turkmen gas to Pakistan through the volatile Afghanistan in an agreement signed in May 2002 in Islamabad and was known as Turkmenistan-Afghanistan-Pakistan pipeline project. India was later invited to join in April 2008.

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