facebook
twitter
rss
account
search
search
 

Gas transit fees focus of TAPI debates

Jan. 16, 2012 at 10:19 AM   |   Comments

NEW DELHI, Jan. 16 (UPI) -- A high-ranking meeting in New Delhi will center on transit fees tied to a natural gas pipeline from Turkmenistan, an Indian official said.

Last year, Turkmenistan and Pakistan signed a draft deal would increase plans by Ashgabat to deliver about 1.1 trillion cubic feet of gas each year through a pipeline by about 2 billion cf when it goes into service in the next few years. Both sides agreed to a price that was 69 percent of crude oil parity.

Islamabad said the service date for the pipeline depends on the security situation in Afghanistan. The Turkmenistan-Pakistan-Afghanistan-India pipeline is seen as a rival to Iran's plans to build a similar network from the South Pars gas field.

New Delhi wants to discuss with Islamabad transit fees for TAPI during meetings scheduled for Jan. 25.

"This would give us a fair idea about the landed cost of Turkmen gas. India's participation in the TAPI project will depend on the landed cost of gas," an official in New Delhi told The Economic Times of India on condition of anonymity.

Islamabad said it was considering its options as it struggles to cope with natural gas shortfalls. The official said all parties would be one step closer to a final gas sales purchase agreement once the transit fee issue is resolved.

"India has surplus refining capacity and Pakistan depends on import of petrol and diesel," one official told the news service. "We can be natural partners."

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Notable deaths of 2014 [PHOTOS]

Notable deaths of 2014 [PHOTOS]

Most Popular
1
Tony Hayward: Kurdish oil sector open for business Tony Hayward: Kurdish oil sector open for business
2
Textron's G-CLAW on target in live-fire demonstration Textron's G-CLAW on target in live-fire demonstration
3
Creator of 'Honey Badger Don't Care' brand sues for trademark infringement Creator of 'Honey Badger Don't Care' brand sues for trademark infringement
4
Pay up, Gazprom tells Ukraine Pay up, Gazprom tells Ukraine
5
$3 gas could make a comeback $3 gas could make a comeback
Trending News
Video
x
Feedback