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China interested in joining TAPI pipeline project – Pakistan official

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China interested in joining TAPI pipeline project – Pakistan official
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Agencies
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August 8, 2018
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ISLAMABAD: China is exploring building a spur from Pakistan’s territory once the multi-country TAPI natural gas pipeline project begins operating, a Pakistani official said, with the financial close of the project’s first phase expected next month.

Originating at the giant Galkynysh gas field in Turkmenistan, the $9.6 billion TAPI (Turkmenistan, Afghanistan, Pakistan and India) pipeline involves the four countries’ own energy companies and would carry 33 billion cubic metres (bcm) of gas a year.

Turkmenistan is building the TAPI pipeline to diversify its gas exports, which have mostly gone to China. But the project has suffered lengthy delays due to difficulties obtaining financing and the security risks of building a pipeline through war-torn Afghanistan.

The chief executive officer of Pakistan’s state-owned Inter State Gas Systems (ISGS) Mobin Saulat, told Reuters that Chinese officials have shown growing interest in building a spur from Pakistan and the line could act as an alternative to Beijing’s plans to build a fourth China-to-Turkmenistan pipeline.

“With this channel, there is a possibility they don’t have to do another line and they can off-take from this pipeline which is passing through Pakistan,” Saulat said.

A China-to-Turkmenistan line has to cross several Central Asian mountain ranges and Saulat said it would be cheaper and easier for China to build a line from inside Pakistan’s territory to cross the Karakoram range to its Western border.

China’s ties to Islamabad have deepened in recent years as Beijing has pledged to fund $57 billion in infrastructure as part of its Belt and Road initiative, including power stations and transport links.

Facing more delays, TAPI countries have changed tack to attract financing and make progress in the past two years. The project is now due to be done in two phases, with the pipeline built without compressors in the first phase, which would cut gas volume but would reduce prohibitive project costs.

Once gas starts flowing, and the pipeline begins generating cash flow, financing would be raised for the second phase that would see 11 compressors installed along the 1,814 km (1,127 miles) pipeline project.

“With this introduction of the phased approach, it has gained momentum with the Chinese,” said Saulat.

The financial close for the first phase is due by the end of September, Saulat said, with the Asian Development Bank promising $1 billion to $1.5 billion and the Islamic Development Bank giving assurances of $1 billion in loans. (Reporting by Drazen Jorgic; Editing by Christian Schmollinger).
 
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This will make this project more viable than Iran Pakistan pipeline, but still looks far-off as laying the line in Afghanistan would take very long.
 
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Looking at the initial part of this thread title, I thought it is: "China interested in joining CPEC" :woot::woot:
 
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i think the Iran Pakistan pipe line should still go ahead there is no harm in having infrastructure set up and using multiple options
 
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IRAN-PAKISTAN-CHINA GAS line should be connected to Gawadar project
TAPI is useless for Pakistan , as we can get better gas deal from Iran
 
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i think the Iran Pakistan pipe line should still go ahead there is no harm in having infrastructure set up and using multiple options
Other than the funding difficulties for this project(on Pakistan's side) and US pressure...this is still a safer option IMO. The proble with TAPI is the uncertain future/stability/unrest of Afghanistan. Though it would be good to have both to have more diverse options and one can supply Northern Pak while the Iran/Pak one can be used for Balochistan and Sindh's needs...

...but the number one problem that remains is funding these projects...for that Pak should first focus on improving its economy and getting out of this massive revolving credit(loans) cycle.
 
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IRAN-PAKISTAN-CHINA GAS line should be connected to Gawadar project
TAPI is useless for Pakistan , as we can get better gas deal from Iran
wrong TAPI gas is 55% brent oil vs 65% iranaian gas
iran did cuff off your elctricty to baluchistan
saudi is factor
 
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TAPI will never succeed as there is chaos in Afghanistan , it is best we focus on gas from Iran direct , safe gas supply we don't need TAPI

We will accept the gas from Turkmenistan to CHINA to Pakistan

The people who signed us up for this TAPI route were all pro America agenda holders

Only time we will accept this TAPI is if Afghanistan becomes a province of Pakistan
 
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TAPI will never succeed as there is chaos in Afghanistan , it is best we focus on gas from Iran direct , safe gas supply we don't need TAPI

We will accept the gas from Turkmenistan to CHINA to Pakistan

The people who signed us up for this TAPI route were all pro America agenda holders

Only time we will accept this TAPI is if Afghanistan becomes a province of Pakistan
Going ahead with Iran Pak gas pipeline will have strong repercussions , US wont be happy. Pakistan might come under sanctions, struggling economy will further depreciate. Pak might also end up losing the European markets. This will also enrage SA where thousand of Pakistanis work and is major source of remittance to Pakistan.

Pakistan will have to take Saudi Arabia into full confidence, and convince US as well if possible.
 
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