Pakistan-based media outlet The Express Tribune reports that Pakistan intends to negotiate a lower gas price with TAPI Pipeline Company Ltd (TPCL).
“We are keen to have a new compatible gas price under the Turkmenistan-Afghanistan-Pakistan-India (TAPI) project. Accordingly, renegotiations for the gas price will take place with TPCL before start of work on the project in Pakistan,” a senior official privy to petroleum-sector developments was quoted as sayubf.
According to the source, Pakistan would complete phase-I of the project within 30 months. In the first phase, there will be free flow of gas in the pipeline, which will be completed at an estimated cost of $5-6 billion. In the second phase, compressor stations worth $2 billion will be installed.
Let us recall that a month ago India also threatened to refuse to purchase the Turkmen gas if the contract price of $350 per thousand cmb is not reduced.
Experts estimated that India might be satisfied with the price of $140 per thousand cmb.
At the same time Pakistan also demanded that Turkmenistan cover the financial costs in case the gas transit will be halted as a result of terrorist attacks in Afghanistan.
As of now the construction of the TAPI gas pipeline has been officially launched in Turkmenistan and Afghanistan despite the fact that in early October Afghanistan’s Minister of Economy Mustafa Mastoor said that some $9 to 12 billion are required for the TAPI construction.
Turkmenistan has previously promised to allocate funds but owing to the economic slump “lost interest” in the investments.