Lok Sabha Question No. 2530 (UNSTARRED), answered on 2015-12-14
Subject: TAPI Pipeline
Ministry: PETROLEUM AND NATURAL GAS
Asked by: KIRTI VARDHAN SINGH, SRIRAM MALYADRI

## LOK SABHA UNSTARRED QUESTION NO.2530 TO BE ANSWERED ON 14 TH  DECEMBER, 2015

## TAPI PIPELINE

## 2530.  SHRI KIRTI VARDHAN SINGH: SHRI MALYADRI SRIRAM:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) the details of Turkmenistan-Afghanistan-Pakistan-India (TAPI) transnational gas pipeline projects  including  length  of  the  gas  pipeline,  estimated  cost,  country-wise  along  with quantum  of  natural  gas  to  be  supplied  to  India  through  the  pipeline  and  status  of  price negotiations with participating countries;
- (b)  whether  it  is  a  fact  that  fall  in  gas  prices  has  led  to  the  TAPI  pipeline  becoming  uneconomic and if so the details thereof;
- (c) the steps taken / being taken to ensure energy and oil security for India over the long run;
- (d) whether the Government has signed an agreement in Turkmenistan with 3 other countries to jointly own TAPI pipeline;
- (e)  if  so,  the  details  thereof  along  with  cost  of  the  project  and  share  of  India  in  the  said pipeline; and
- (f) the efforts made by the Government to speed up these pipeline projects in a time-bound manner?

## ANSWER

## पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) ( श्री धमेन्द्र प्रधान )

MINISTER OF STATE(INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a):   The 1814 km Turkmenistan - Afghanistan - Pakistan - India (TAPI) Pipeline project for Natural Gas supply from the Galkynysh fields in Turkmenistan will carry 90 MMSCMD of natural gas, of which India and Pakistan will receive 38 MMSCMD each (likely to rise to 44.25 MMSCMD). Afghanistan has indicated that it will be taking volumes of the tune of 1.5 - 4 MMSCMD. The landfall point of the pipeline in India will be at Fazilka (Punjab).

| Gas source            | Galkynysh (formerly Osman - Yolotan), Turkmenistan   |
|-----------------------|------------------------------------------------------|
| Originating point     | South Yolotan - Osman in Turkmenistan                |
| Total Pipeline Length | 1814 km                                              |
| Within Turkmenistan   | 214 km                                               |
| Within Afghanistan    | 773 km                                               |
| Within Pakistan       | 827 km                                               |

| Volumes for Export Afghanistan India Pakistan   | 90MMSCMD 1.5 -4MMSCMD 38 MMSCMD(Likely to increase to 43-44.25 MMSCMD) 38 MMSCMD(Likely to increase to 43-44.25 MMSCMD)                                                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Estimated Project Cost (As per Penspen report)  | USD 15 billion* approx. (with Capex as USD 8.73 billion) for the Afghan - Pak section (~ 1600 km) * During review by the four parties in September 2015, the Capex was revised to USD 4.78 billion. However, the updated Penspen Report with revised cost estimate is yet to be received. The final Capex and the total project cost will become known only after completion of Front End Engineering Design (FEED) to be undertaken as part of the pre-Final Investment Decision (FID) studies |

Two  Government  level  agreements,  namely,  Gas  Pipeline  Framework  Agreement (GPFA) and Inter-Governmental Agreement (IGA) have been signed among the four member countries in December 2010. Bilateral Gas Sales & Purchase Agreement (GSPA)  has been signed among the 3 Buyers (GAIL (India) Limited - India, ISGS Pvt. Ltd. - Pakistan, Afghan Gas  Enterprise  -  Afghanistan)  and  the  Seller  (State  Concern  'Turkmengas').  Further,  an Operations Agreement detailing metering, allocation and nomination aspects has been signed among the four TAPI entities (3 Buyers and the Seller) in July 2014. The Transit Fee payable to the transiting countries has been broadly agreed.

The  Shareholders  Agreement  (SHA)  of  TPCL  has  been  initialed  during  the  30 th Technical Working Group(TWG) and 23rd Steering Committee(SC) meetings held from 23rd to  25th  October,  2015.  During  the  SC  meeting,  the  shareholding  percentages  in  the  TPCL have  also  been  finalized,  as  per  which  the  Consortium  Leader  Group  (CLG),  led  by Turkmengas shall be taking 85% equity, GAIL  - 5%, ISGS (Pakistan) - 5%, Afghan Gas Enterprise (AGE) - 5%.

(b) TAPI will provide an alternative supply source of gas with dependable reserves leading to enhanced  energy  security.  It  will  further  diversify  the  fuel  basket  to  the  benefit  of  Indian economy.

(c)  Asian  Development  Bank,  the  Transaction  Advisor  for  the  Project  has  got  a  report  on Security  Risk  Assessment  And  Security  Plan  prepared  by  the  security  consultant  -  M/s. Pacific Strategies &  Assessments,  Inc. (PSA). PSA  has  inter-alia  recommended  the following:

- i) Establishment of an Inter - Government Joint Security Task force (JSTF) to serve as the nucleus of the security program. The JSTF should be authorized by each of Afghanistan and Pakistan at the highest level with clear cut roles and responsibilities.

(ii)  Establishment of a team that enables operational continuity and is capable of rapid repair of critical facilities and equipments.

(d) and (e): Details are given at (a) above

(f) The 23 rd Steering Committee Meeting of TAPI was held at Ashgabat on 24.10.2015. At the SC meeting, all four countries reiterated their commitments to expedite the TAPI Pipeline Project.

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