The alternative

  • 04/05/2008

  • Business India (Mumbai)

The much-talked about Indo-Iran JL gas pipeline project has been on the backburner for sometime now. However, there are alternative projects that are being explored, one such being the Turkmenistan-Afghanistan-Pakistan-India (tapi) pipeline. Murli Deora, minister for petroleum and natural gas, had been to Pakistan to take part in discussions on the tapi project on 23-24 April with Pakistani authorities."There are issues such as the charges to be levied by Pakistan for transit fees, etc, but I am optimistic that we would be able to resolve them," Deora said at the recently held Asian Gas Summit. "A technical team from India has already left for Islamabad to lay the groundwork for the discussions on the pipeline." tapi, the proposed natural gas pipeline being developed by the Asian Development Bank (adb), will transport Caspian Sea natural gas from Turkmenistan through Afghanistan into Pakistan and then to India. The 1,680 km pipeline will first run from the Dauletabad gas field to Afghanistan, from where tapi will be constructed along the highway running from Heart to Kandahar, and then via Quetta and Multan in Pakistan. The final destination of the pipeline will be India's Fazilka, near the border between Pakistan and India.The pipeline will be 142 cm in diameter, with a working pressure of 100 atm and capacity of 33 billion cubic metre (bcm) of natural gas annually. Six compressor stations are to be constructed along the pipeline. The cost of this international infrastructure is estimated at $3.5 billion (2005 figures). Proponents of the project see it as a modern continuation of the Silk Route. The Afghan government is expected to receive 8 per cent of the project's revenue. The new deal on the pipeline was signed on 27 December 2002 by the leaders of Turkmenistan, Afghanistan and Pakistan, and in 2005, the Asian Development Bank submitted the final version of a feasibility study designed by British company Penspen.Construction of the Turkmen part was supposed to start in 2006, but the overall feasibility is questionable since the southern part of the Afghan section runs through territory, which continues to be under Taliban control. Meanwhile, Deora pointed out that Asian countries have natural areas of commonalities and synergy in social, economic and technological spheres. A multi-faceted economic partnership will underpin traditionally close relationships more securely. India, on its part, is ready to play the sheet anchor role in this endeavour, he said."The policy on utilisation of natural gas should primarily be determined by considerations of national security, food security and energy security," says M.S. Srinivasan, secreary, ministry for petroleum & natural gas. "Without energy security, national economies would come to a halt. Pricing was a key issue in the utilisation of gas. If the gas sector is to grow globally and locally, it is imperative to make it worthwhile for the producers and the users of gas as substitute fuel," he added.According to U.D. Choubey, chairman and managing director, gail, formation of a gas co-operation forum of Asian countries could ultimately give shape to an Asian federation, as role of governments becomes paramount in cross-border natural gas projects. "The basis of co-operation could be in trade, investment, technology transfer and r&d," Choubey adds. With the lowest greenhouse gas emissions amongst fossil fuels, natural gas, economically and environmentally attractive, is a good energy source. Globally, the natural gas era has truly begun during the last decade. Integration of global gas markets has by far been the most significant development.As liberalisation progresses and the quest for energy intensifies, trading opportunities are increasing. The commercial models are undergoing rapid changes and there is a structural shift in market perception. The Asian gas markets are leading the growth in global gas sector, with special investment focus on India.