TAPI pipeline project: talks on April 25

Turkmenistan warning that it would sell gas to some other country if the Turkmenistan-Afghanistan-Pakistan and India (TAPI) gas pipeline project is delayed any further has led to the scheduling of four day talks in New Delhi (April 25-28) to discuss transit fee and develop consensus on gas pricing formula to ink Gas Sales Purchase Agreement (GSPA).
Inter-Governmental Agreement (IGA) and Gas Pipeline Framework Agreement (GPFA) on TAPI have already been signed. During two-day technical level talks held in Islamabad on March 25-26, Turkmenistan warned it would divert gas allocated under TAPI gas pipeline project to some other country if the TAPI project is not functional by 2016.
The project co-ordinator, Asian Development Bank, proposed commissioning first gas flow in December 2018 which was not supported as a further delay in carrying out the project would escalate project cost to $9 billion against current estimates of $7.6 billion. The meeting had set the deadline of July 31 for signing of GSPA, which was earlier scheduled for April 30.
In upcoming talks in New Delhi, Technical Working Group on TAPI project will meet on April 25-27 whereas Steering Committee on the project will hold meeting on April 28 to be attended by Petroleum Ministers of Turkmenistan, Afghanistan, Pakistan and India. Advisor to Prime Minister on Petroleum, Dr Asim Hussain, is expected to attend the ministerial level meeting.
The proposed appointment of ''Transaction Advisor'' will be discussed in talks with the mandate to form a consortium of investors to raise funds for TAPI gas pipeline project. The role of transaction advisor will commence after the signing of GSPA. Different proposals are being discussed to finalise GSPA. Pakistan has proposed a ''uniform'' price of imported gas for all countries including Afghanistan and India and suggests that transportation charges and transit fee should not be made part of the price. Pakistani side has also opposed the proposal to link gas price either with Liquefied Petroleum Gas or crude oil and proposed linking it with domestic gas prices. India is big user of coal and therefore wants to link gas price with that of ''coal''.
"These proposals will again be discussed in upcoming talks to ink GSPA," sources maintained. During the TWG meeting held in April 2007 in Ashgabat, the Turkmenistan side proposed to adjust gas price at Turkmenistan border after every three months and proposed a base price equal to Liquefied Natural Gas landed in Pakistan. Both Pakistan and India had expressed concerns over this formula.