India Likely to Get Gas from Turkmenistan by 2017-18

February 25, 2013

$9-bn Turkmenistan-Afghanistan-Pakistan-India pipeline to help supply 38 mmscmd of gas to India

India is expected to get gas from Turkmenistan by 2017-18, according to a report by India's Business Standard. The ministry of petroleum and natural gas has said the commercial operation of $9-billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline is set to commence by 2017-18.

The minister of state for petroleum and natural gas, P Lakshmi said in a written reply to the Lok Sabha, “Upon completion, TAPI project envisages supply of 38 million metric standard cubic metre per day (mmscmd) of gas to India. So far, the inter-governmental agreement, gas pipeline framework agreement and the gas sales purchase agreement have been finalised. Commercial operation of TAPI project is expected to commence in 2017-18.”

Recently, the Centre had given clearance for setting up of a special purpose vehicle for the TAPI pipeline project, allowing GAIL to be a part of it. Out of the total length of the pipeline, 144 km will be through Turkmenistan, 735 km through Afghanistan and about 800 km via Pakistan. According to the understanding between the countries, the Dubai-based SPV, TAPI Ltd, would scout for a consortium leader to execute the project.

As per the agreement, the initial equity contribution of India in the proposed SPV would be $5 million. “Further investments would be negotiated and decided upon the induction of consortium leader and after completion of feasibility study,” the minister added.

Domestic production to rise
The minister said that according to a working group report by the ministry, the indigenous production is projected to be 41.16 million tonnes (mt) by the end of the 12th five-year Plan period (2012-17). The demand projection of petroleum products is 186.21 mt by the end of the plan period, with an import dependency of 79.2 per cent based on demand projection.

Meanwhile, the minister said that the crude oil imports by oil companies during the April-December period of the current financial year stood at 134.02 mt. On the other hand, crude oil production for the same period stood at 28.6 mt.

Crude oil production during the financial year 2011-12 was around 38.09 mt, compared to 33.51 mt during the financial year 2009-10. On the other hand, natural gas production has decreased to a level 114.1 mmscmd in 2012-13 from 130.2 mmscmd in 2009-10.

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