THE NATION Oct 29 ,2011
ISLAMABAD - Succumbing to the growing US pressure on Iran-Pakistan (IP) gas pipeline, Islamabad and Ashkhabad have reached an accord for delivery of 1.3 billion cubic feet a day of Turkmen gas at 69 per cent of crude oil parity price under the $7.6 billion TAPI pipeline project, which would once again put the IP gas pipeline plan into the doldrums.
Imported Turkmen gas under TAPI would be costlier than Iranian gas and other imported fuels as its price has been linked with the price of Brent crude oil, energy experts said.
“The US is reportedly opposing the Iran-Pakistan gas pipeline project and Islamabad would not decline to the rising demands of Washington as well as the international lenders regarding IP gas deal”, sources privy to the development said and added that the breakthrough in gas purchase deal at 69 per cent of crude oil parity price with Turkmenistan would likely push Pakistan’s plan to import natural gas from Iran at relatively higher rates into doldrums.
The TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline project would provide 1.3 billion cubic feet of gas a day that would be completed by December 2016. However, the project depends on a credible security apparatus in Afghanistan as well as the overall security situation of the war-torn region.
Petroleum Minister Dr Asim Hussain told The Nation that Pakistan and Turkmenistan have reached a consensus on gas pricing formula. However, he categorically said, it is too early to tell about the Turkmen gas price. He further said that the precarious energy situation in the country required urgent measures to bolster domestic supplies by either exploiting natural resources or through imports.
He also said that the incumbent government is determined to cope with the prevailing energy crisis seriously and with all out efforts, Pakistani people should expect rising and shining Pakistan from the PPP-led coalition government.
It is noteworthy here that during strategic dialogue between Pakistan and US, held in September, United States Secretary of State Hillary Clinton while conveying serious US concerns and reservations over IP gas project asked Pakistan to withdraw/quit. Further, in this context, Dr Asim during an interview the other day also said a breakthrough in the project for laying a pipeline to import natural gas from Iran depends on an “understanding” with the international community. He however categorically said that Pakistan was working on the project but progress depended on world conditions. “Progress on the IP gas pipeline project depends on international understanding,” he said.
The accord for delivery of Turkmen gas at 69 per cent of crude oil parity price under the US-backed Turkmenistan-Afghanistan-Pakistan-India gas pipeline project has made the project of importing natural gas from Iran doubtful, sources privy to the development informed, adding, that the future of the much-talked-about IP gas pipeline project seems to be in doldrums once again as Pakistan and Turkmenistan have reached an accord for delivery of 1.3 billion cubic feet a day of Turkmen gas at 69 per cent of crude oil parity price under the $7.6 billion TAPI pipeline project.
Reportedly, Pakistan has sought financial and technical assistance from the US for expediting exploration and production of the country’s natural gas resources as an alternate to the IP pipeline project. This demand was made during talks between Finance Minister Dr Abdul Hafeez Sheikh and Special Envoy and Coordinator for International Energy Affairs, Ambassador Carlos Pascual, on Wednesday in Washington.
The US team, they said, raised concerns over the IP gas pipeline and warned that projects with Iran could invite sanctions from the UN. They advised Pakistan to utilize its indigenous gas reserves instead of importing gas from Iran.
.
.