Cabinet approves proposal to permit GAIL to sign agreement on TAPI Gas pipe line project

The Union Cabinet approved the proposal of the Ministry of Petroleum & Natural Gas to permit GAIL India Limited to ink the Gas Sale & Purchase Agreement (GSPA) with Turkmenistan’s national oil company Turrnen-Gas, for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project.

The provisos of the GSPA have been structured to safeguard India’s commercial interests as India is at the tail end of the pipeline. Afghanistan and Pakistan have committed to the safety and security of the pipeline via the Inter-Governmental Agreement and the Gas Purchase Framework Agreement inked amongst the 4 countries in December 2010.
TAPI Gas Pipeline:

• To be 1680 Km in length (144 Km in Turkmenistan, 735 Km in Afghanistan & 800 Kms in Pakistan)
• Capacity of 90 MMSCMD (Million Metric Standard Cubic Meter Definition) of gas
• 38 MMSCMD each for India and Pakistan and the remaining 14 MMSCMD for Afghanistan.
  Expected to be operational in 2018
• Expected to supply gas over a 30 years period.
• Source of the gas: South Yoiotan Osman field, recently renamed ‘Galkynysh’
• Galkynysh certified to be holding proven recoverable gas reserves of 16 trillion cubic metres.

Month: Current Affairs - May, 2012