Authorities in Pakistan are concerned that Turkmen Gas Company has yet to fulfil all the conditions of financing the $10 billion trans-national Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline which was supposed to be operational by 2020.
Pakistan says the billion project will now come on stream in 2023 if the Turkmen Gas Company can complete the financial closure by 2021.
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The TAPI project started in 2015 and has faced hurdles since its inception. As of now pipes continue to be welded in Afghanistan while Turkmenistan has just managed to secure the steel pipes they need for their section.
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Top sources told The News International that unless the Turkmen authorities change the gas delivery point and review the gas prices, Pakistan will not go ahead with the project.
Under the existing agreement, Turkmenistan will provide the gas from the Galkynysh Gas Field via Afghanistan to Pakistan and onwards to India. All the gas transit loss in the territory of Afghanistan had to be borne by Pakistan.
However, the current government has objected to this agreement and said it was not in their country’s interests. Pakistan’s liabilities should not be invoked when the gas is in transit through Afghan territory.
Pakistan and Turkmenistan expect to hold a number of meetings between their Petroleum Division and Turkmen Gas to ensure the project is underway.