Thursday, January 26, 2012

TAPI project: India, Pakistan agree on uniform transit fee

  • In a breakthrough that will take forward the ambitious $7.6-billion TAPI (Turkmenistan, Afghanistan, India and Pakistan) pipeline project, India and Pakistan on Wednesday agreed to have a uniform transit fee to ferry natural gas from Turkmenistan.
  • Under the in-principle agreement, India will pay transit fee to Pakistan and Afghanistan to get its share of 38 million standard cubic metres a day of gas through the pipeline, while Islamabad will pay ferrying charges to Afghanistan.
  • The 1,735-km-long pipeline will run from Turkmenistan's Yoloten-Osman gas field to Herat and Kandahar province of Afghanistan, before entering Pakistan. In Pakistan, it will reach Multan via Quetta before ending at Fazilka (Punjab) in India. The project envisages a total throughput of 90 million standard cubic metres a day (MSCMD) of gas, of which India is expected to receive 38 MSCMD after it becomes operational.

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