India seeks re-negotiation in gas price from TAPI pipeline

[Clutch]

India seeks re-negotiation in gas price from TAPI pipeline


By PTI | Updated: Aug 22, 2018, 10.59 AM IST

• India has sought re-negotiation of the natural gas price it is to source through a proposed USD 10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline in view of the slump in global energy markets, a top source said.
  
  The four nations to the pipeline projects had in 2013 signed a gas sale purchase agreement (GSPA) that benchmarked the price of natural gas that Turkmenistan is to export at 55 per cent of the prevailing crude oil price. This translates into a price of about USD 7.5 per million British thermal unit (mmBtu) at current oil prices at the Turkmen border.
  
  Added to this would be transit fee and transportation charges which would jack up the rates to over USD 10.5 per mmBtu at the Indian border, the source said.
  
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  For a consumer, the price would be around USD 13 per mmBtu after adding local taxes and transportation charges.
  
  "This rate in the present global energy scenario is unacceptable. And so taking into cognizance of the current gas market, India has proposed for re-negotiation of GSPA," the source said.
  
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  The price of Turkmen gas is more than double of the USD 3.6 per mmBtu rate paid for post natural gas producers in India.
  
  Leaders of the four countries performed the ground-breaking of the project in December 2015 but the project hasn't moved significantly since then.
  
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  The source said the project has not moved forward because of unresolved issues like the economic viability of the project, security of supply and tie-up of debt and equity.
  
  The four nations have incorporated TAPI PipelineCompany Limited (TPCL) in Isle of Man to build, own, and operate the TAPI Pipeline. Turkmenistan's Turkmengas has been appointed as the consortium leader. State gas utility GAIL India Ltd represents India on the consortium.
  
  TAPI pipeline is nearly 1,680-kilometers long, with 735-km in Afghanistan and nearly 800-km in Pakistan. The 56-inch diameter 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.
  
  Turkmenistan would export 90 million standard cubic meters per day of gas through TAPI, with Afghanistan getting 14 mmscmd and India and Pakistan 38 mmscmd each.
  
  The gas will be sourced from the Yoloten Usman field, which ranks amongst the five biggest fields in the world. The field is being developed by Turkmenistan national oil firm TurkmenGas.
  
  India had previously used its position as world's fastest-growing energy consumer to renegotiate gas import deals with Australia, Russia and Qatar.
  
  Renegotiating terms of the 20-year deal to import 2.5 million tonnes a year of liquefied natural gas (LNG) from Gazprom saved the country between Rs 8,500 crore and Rs 9,500 crore over the contract period ending 2040.
  
  Last year, India got US energy major Exxon Mobil Corp to lower the price of 1.5 million tonnes a year of LNG from Gorgon project in Australia, saving Rs 4,000 crore in import bill.
  
  In 2015, it renegotiated a long-term deal for the supply of 7.5 million tonnes of LNG with Qatar, saving around Rs 8,000 crore.

 

[BHarwana]

We need to ditch TAPI and start working on IP. TAPI is a small project and cannot fulfill our needs we need IP to entertain the whole country and TAPI helps India more.

 

[Pan-Islamic-Pakistan]

There is no more public will in Pakistan for TAPI. Its all about CPEC and IP.

May the terrorists at our borders burn in Hell. 60,000+ Shuhada will be remembered forever.

 

[Sugarcane]

Pakistan should also join to renegotiate prices to bring it down, but these pipelines will remain pipedreams for foreseeable future. So, We should focus on increasing our LNG handling capacity which is better option plus no-dependency on one supplier.

 

[ziaulislam]

We need to ditch TAPI and start working on IP. TAPI is a small project and cannot fulfill our needs we need IP to entertain the whole country and TAPI helps India more.

IP is at 60% and you want to ditch 55%?

confused?

 

[Dark-Destroyer]

IP is at 60% and you want to ditch 55%?

confused?

Ip can also be renegotiated by the new government

 

[Umair Nawaz]

We need to ditch TAPI and start working on IP. TAPI is a small project and cannot fulfill our needs we need IP to entertain the whole country and TAPI helps India more.

We r getting prize of 7 dollar per unit from TAPI while from iran it was 14/15 dollars per unit.

But how does this favors india more?

But i agree that we need to increase the transport charges and transit fees, the prize for india is at 7.5 dollars while including these charges and fees it only becomes 10 dollars for india which is ridiculous as it includes both Pakistani n Afghan fees n charges even though it passes 735 km in Afghanistan and 800km in Pakistan.

We should charge india per meter or per km basis. We need money and we need them bad!!!!!!!

That is if we continue with it on the first place.

 

[MBT 3000]

no TAPI remove india but if TAPI is continued then tax india

 

[El Sidd]

Sorry but no ipi no tapi no nothing.

#DealWithIt

 

[Skull and Bones]

Have been hearing about it for 15 years.

 

[Didact]

We r getting prize of 7 dollar per unit from TAPI while from iran it was 14/15 dollars per unit.

But how does this favors india more?

But i agree that we need to increase the transport charges and transit fees, the prize for india is at 7.5 dollars while including these charges and fees it only becomes 10 dollars for india which is ridiculous as it includes both Pakistani n Afghan fees n charges even though it passes 735 km in Afghanistan and 800km in Pakistan.

We should charge india per meter or per km basis. We need money and we need them bad!!!!!!!

That is if we continue with it on the first place.

Oh yes, and for some extraordinary reason, India will agree to pay prices at upto 3-5x the spot market prices through sea lanes, while accepting the uncertainty of supply given the route of the proposed pipeline.

The funny part of this absurd delusion among these self appointed economists is that without India or China, this pipeline becomes economically unviable. And anyways India is concerned about taking significant exposure to a strategic supply through an "unreliable" country. Far too high diplomatic, economic and strategic costs for India....without any real tangible gain.

 

[Umair Nawaz]

Oh yes, and for some extraordinary reason, India will agree to pay prices at upto 3-5x the spot market prices through sea lanes, while accepting the uncertainty of supply given the route of the proposed pipeline.

The funny part of this absurd delusion among these self appointed economists is that without India or China, this pipeline becomes economically unviable. And anyways India is concerned about taking significant exposure to a strategic supply through an "unreliable" country. Far too high diplomatic, economic and strategic costs for India....without any real tangible gain.

that is IF u have a choice NOT to.......

Anyway we r a sovereign country, its only our decision to allow or DISALLOWED whatever passes through our territory and at what terms.

Take it or leave it.

 

[oOo]

that is IF u have a choice NOT to.......

Anyway we r a sovereign country, its only our decision to allow or DISALLOWED whatever passes through our territory and at what terms.

Take it or leave it.

So much of desperation to make money out of any way. Why not call yourself Islamic republic of Toll Plaza if that is the only way left for you to make money.

CPEC - toll
US supplies - toll
India - toll

Kuch aur aata hai?

 

[ziaulislam]

Ip can also be renegotiated by the new government

Iran won't budge

 

[Umair Nawaz]

So much of desperation to make money out of any way. Why not call yourself Islamic republic of Toll Plaza if that is the only way left for you to make money.

CPEC - toll
US supplies - toll
India - toll

Kuch aur aata hai?

like i said kid, its our decision NOT yrs. We have every right to do so if we chose to do.
We deal with Countries according to our interests and needs depending upon their relations with us, And haha we all know yr country was poor relations with mine unlike China or whatever. Nor do we own u any favors nor have ever yr country did any favors to us unlike again our great friend like China.

I find such comparison very lame, childish and more so laughable.