TAPI gas pipeline

New accord to compensate Pakistan for gas transit

loss in Afghanistan

By Khalid Mustafa

ISLAMABAD: Turkmenistan has indicated to Pakistan that it will include the mechanism in the TAPI agreement ensuring that Pakistan will be compensated against gas transit loss in Afghanistan in case of any subversive activity in the territory of war ravaged country.

In addition Turkmenistan has now agreed to review the gas prices for which an experts’ team from Turkmen Gas Company will visit Pakistan soon.

Pakistan had asked Turkmenistan that Islamabad will never bear the gas transit risk in war ravaged Afghanistan under $8 billion TAPI gas line. In case the gas supply to Pakistan is disconnected because of any subversive activity in Afghanistan, Pakistan will never take the risk at any cost, rather Turkmenistan will have to bear the risk.

Though the TAPI company’s delegation is currently visiting Pakistan, but the gas review talks will start when Turkmenistan gas company delegation turns up in Islamabad.

According to top sources Pakistan deems that the gas price formula under which the gas prices of every buying countries (Afghanistan, Pakistan and India) has been worked out, is too much complicated and the new gas price formula need to be worked out. To a question, they said that Pakistan wants the reference price of LNG currently cheaper in the open market as alternate of TAPI gas while starting the price review talks.

During the last visit to Pakistan, President of Afghanistan Ashraf Ghani had acknowledged the issue raised by Pakistan on gas transit risk and assured that in this regard the authorities in Afghanistan will soon meet their counterparts in Turkmenistan. Now Turkeminstan has indicated to Pakistan, that the value of the gas that is to be lost during transit in Afghanistan in case of any subversive activities will be paid to Pakistan and to this effect mechanism will be include in the agreement.

The three buyer countries—Afghanistan, Pakistan and India had inked the gas sales purchase agreement with Turkmenistan on bilateral basis. Now all the buyer countries want to unfold their prices and want the re-negotiations.