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.
The Hindu Business Line

Posted by Jawwad Kazi on 23rd Aug 2018