NEW DELHI: India has sought re-negotiation of the herbal fuel value it's to source via a proposed $10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline in view of the stoop in world power markets, a top source said.
The four nations to the pipeline tasks had in 2013 signed a fuel sale purchase settlement (GSPA) that benchmarked the price of herbal fuel that Turkmenistan is to export at 55 in keeping with cent of the present crude oil value. This translates into a value of about $7.five in keeping with million British thermal unit (mmBtu) at current oil prices at the Turkmen border.
Added to this would be transit price and transportation charges which might jack up the charges to over $10.five in keeping with mmBtu at the Indian border, the source said.
For a shopper, the fee can be round $13 in keeping with mmBtu after adding local taxes and transportation charges.
"This rate in the present global energy scenario is unacceptable. And so taking into cognizance of the current gas market, India has proposed for re-negotiation of GSPA," the source said.
The value of Turkmen fuel is more than double of the $3.6 in keeping with mmBtu price paid for put up herbal fuel manufacturers in India.
Leaders of the four international locations performed the ground-breaking of the undertaking in December 2015 but the undertaking hasn't moved significantly since then.
The source said the undertaking has not moved forward as a result of unresolved problems like the commercial viability of the undertaking, security of provide and tie-up of debt and equity.
The four nations have incorporated TAPI Pipeline Company Limited (TPCL) in Isle of Man to build, own, and operate the TAPI Pipeline. Turkmenistan's Turkmengas has been appointed as the consortium chief. State fuel software GAIL India Ltd represents India on the consortium.
TAPI pipeline is just about 1,680-kilometers long, with 735-km in Afghanistan and just about 800-km in Pakistan. The 56-inch diameter pipeline will run from Turkmenistan's Yoloten-Osman fuel field to Herat and Kandahar province of Afghanistan, sooner than getting into Pakistan. In Pakistan, it's going to reach Multan by means of Quetta sooner than ending at Fazilka (Punjab) in India.
Turkmenistan would export 90 million same old cubic meters in keeping with day of fuel via TAPI, with Afghanistan getting 14 mmscmd and India and Pakistan 38 mmscmd every.
The fuel shall be sourced from the Yoloten Usman field, which ranks amongst the 5 biggest fields on the earth. The field is being evolved by means of Turkmenistan nationwide oil firm TurkmenGasoline.
India had up to now used its position as world's fastest-growing power client to renegotiate fuel import deals with Australia, Russia and Qatar.
Renegotiating phrases of the 20-year deal to import 2.five million tonnes a year of liquefied herbal fuel (LNG) from Gazprom saved the country between Rs eight,500 crore and Rs nine,500 crore over the contract length ending 2040.
Last year, India got US power main Exxon Mobil Corp to decrease the price of 1.five million tonnes a year of LNG from Gorgon undertaking in Australia, saving Rs 4,000 crore in import bill.
In 2015, it renegotiated a long-term deal for the provision of 7.five million tonnes of LNG with Qatar, saving round Rs eight,000 crore.
The four nations to the pipeline tasks had in 2013 signed a fuel sale purchase settlement (GSPA) that benchmarked the price of herbal fuel that Turkmenistan is to export at 55 in keeping with cent of the present crude oil value. This translates into a value of about $7.five in keeping with million British thermal unit (mmBtu) at current oil prices at the Turkmen border.
Added to this would be transit price and transportation charges which might jack up the charges to over $10.five in keeping with mmBtu at the Indian border, the source said.
For a shopper, the fee can be round $13 in keeping with mmBtu after adding local taxes and transportation charges.
"This rate in the present global energy scenario is unacceptable. And so taking into cognizance of the current gas market, India has proposed for re-negotiation of GSPA," the source said.
The value of Turkmen fuel is more than double of the $3.6 in keeping with mmBtu price paid for put up herbal fuel manufacturers in India.
Leaders of the four international locations performed the ground-breaking of the undertaking in December 2015 but the undertaking hasn't moved significantly since then.
The source said the undertaking has not moved forward as a result of unresolved problems like the commercial viability of the undertaking, security of provide and tie-up of debt and equity.
The four nations have incorporated TAPI Pipeline Company Limited (TPCL) in Isle of Man to build, own, and operate the TAPI Pipeline. Turkmenistan's Turkmengas has been appointed as the consortium chief. State fuel software GAIL India Ltd represents India on the consortium.
TAPI pipeline is just about 1,680-kilometers long, with 735-km in Afghanistan and just about 800-km in Pakistan. The 56-inch diameter pipeline will run from Turkmenistan's Yoloten-Osman fuel field to Herat and Kandahar province of Afghanistan, sooner than getting into Pakistan. In Pakistan, it's going to reach Multan by means of Quetta sooner than ending at Fazilka (Punjab) in India.
Turkmenistan would export 90 million same old cubic meters in keeping with day of fuel via TAPI, with Afghanistan getting 14 mmscmd and India and Pakistan 38 mmscmd every.
The fuel shall be sourced from the Yoloten Usman field, which ranks amongst the 5 biggest fields on the earth. The field is being evolved by means of Turkmenistan nationwide oil firm TurkmenGasoline.
India had up to now used its position as world's fastest-growing power client to renegotiate fuel import deals with Australia, Russia and Qatar.
Renegotiating phrases of the 20-year deal to import 2.five million tonnes a year of liquefied herbal fuel (LNG) from Gazprom saved the country between Rs eight,500 crore and Rs nine,500 crore over the contract length ending 2040.
Last year, India got US power main Exxon Mobil Corp to decrease the price of 1.five million tonnes a year of LNG from Gorgon undertaking in Australia, saving Rs 4,000 crore in import bill.
In 2015, it renegotiated a long-term deal for the provision of 7.five million tonnes of LNG with Qatar, saving round Rs eight,000 crore.
India seeks revision in gas price from TAPI pipeline
![India seeks revision in gas price from TAPI pipeline]()
Reviewed by Kailash
on
August 23, 2018
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