TAPI Pipeline: Pakistan Proposes Uniform Transit Fee

Via The Express Tribune, an article on Pakistan’s recent proposal of a uniform transit fee for the import of gas under the $7.6 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project:

“…Pakistan has proposed Afghanistan a uniform transit fee for the import of gas under the $7.6 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, government officials say.

In order to finalise the transit fee, Pakistan, Afghanistan and India are expected to hold a meeting in the near future.

On the other hand, Afghanistan, in a bid to address security issues, has assured Pakistan that it will depute security forces on the route of the pipeline coming from Turkmenistan to ward off any attack from anti-state elements.

All this came up for discussion in a meeting here on Thursday among Petroleum Minister Dr Asim Hussain, Afghanistan’s Deputy Finance Minister Mohammad Mustafa Mastoor and Afghan Deputy Policy and Mines Minister Mir Ahmad Jawid Sadat.

Petroleum Secretary Muhammad Ejaz Chaudhry and other senior officials of the ministry attended the meeting.

An official of the petroleum ministry told The Express Tribune that under the uniform transit fee plan Pakistan would receive the fee from India which it would pay to Afghanistan.

Pakistan and India were also planning to approach Turkmenistan to offer it to jointly develop the Daulatabad gas field from where gas would be supplied to them, the official said.

“The Asian Development Bank (ADB) has already said that Turkmenistan is not capable of developing the gas field and contracts should be awarded to western companies,” the official said, adding that was why Pakistan and India wanted to take some share in developing the gas field.

“Pakistan’s state-owned gas exploration companies like the Oil and Gas Development Company (OGDC) may enter into joint ventures with Indian gas companies to develop the field in Turkmenistan,” he said.

According to a statement issued after the meeting, Asim Hussain said Afghanistan was an important strategic partner and bilateral relations should be further strengthened.

He stressed that economic linkages were the key to strengthening bilateral relations, which were imperative for the development of both the countries.

Recalling his recent visit to India, Hussain said he held positive discussions with Indian officials on the TAPI pipeline project. He proposed that Pakistan, Afghanistan and India should hold joint meetings on the issue in future.

He said the government was willing to explore the possibility of establishing retail outlets of Pakistan State Oil (PSO) in Afghanistan.

Both the sides agreed that the transit fee for the pipeline should be realistic and a detailed session would be held to reach an understanding.

Afghan Deputy Finance Minister Mir Mohammad Mustafa Mastoor said Afghanistan was committed to the project and would help in meeting regional energy demands.

The Afghan delegation provided an update on the security situation on the planned route of the pipeline.

Mastoor said his government was planning to conduct road shows in major cities of Pakistan in order to highlight investment opportunities in Afghanistan.

This entry was posted on Friday, February 3rd, 2012 at 12:06 pm and is filed under Afghanistan, India, Pakistan.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

Comments are closed.

Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.