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India seeks revision in price of gas via TAPI line
Why in the news ?
- India has sought re-negotiation of the natural gas price it is to source through a proposed $10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline due to slump in global energy markets.
More about
- The four nations to the pipeline projects had in 2013 signed a gas sale purchase agreement (GSPA) that benchmarked the price of natural gas that Turkmenistan is to export at 55 per cent of the prevailing crude oil price.
- However the slump in global energy markets, India seeks revision in price.
TAPI project
- TAPI gas pipeline project is a proposed trans-country natural gas pipeline from Caspian Sea, Turkmenistan to India through Afghanistan and Pakistan.
- Out of total 1,814-kilometer gas pipeline , at least 816 kilometers of the pipeline will pass through the territory of Afghanistan.
- The TAPI Project is considered as an important initiative of these four countries to connect energy rich Central Asia with energy starved South Asia.
- It marks a new dawn of economic engagement through regional connectivity by economically integrating region stretching from the Bay of Bengal to the Caspian sea.
- From India’s perspective, TAPI Project will provide an alternative supply source of gas with dependable reserves leading to enhanced energy security.
Source
The Hindu Business Line