Gas prices to be re-negotiated with TAPI Project Company


Pakistan is keen to re-negotiate gas prices with Tapi Project Company Limited (TPCL) before the ground breaking of the project takes place. According to sources Pakistan is asking for a new compatible gas price from the TPCL.

After the agreement is signed a ground breaking ceremony will be held at Chamman after which Pakistan will initiate work on phase 1 of the project. Phase 1 will focus on will be completed within a period of 30-month under which a pipeline will be laid from Chaman to Multan via Quetta and Dera Ismail Khan. Phase I will be completed with an estimated cost of $ 5 to 6 billion while in second phase compressor stations to be installed at a cost of $ 1.9 to 2 billion.

Under the project, he said, a 56-inch diameter 1,680 kilometres pipeline, having capacity to flow 3.2 billion cubic feet per day (bcfd) gas, would be laid from Turkmenistan through Afghanistan and Pakistan up to Pak-India border by the year 2022.

As per the Tapi agreement, Pakistan and India will be provided 1.325 bcfd (billion cubic feet per day) gas each and Afghanistan will be getting the share of 0.5 bcfd gas.