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The four nations to the pipeline projects had in signed a gas sale purchase agreement GSPA that benchmarked the price of natural gas that Turkmenistan is to export at 55 percent of the prevailing crude oil price.
And so taking into cognizance of the current gas market, India has proposed for re-negotiation of GSPA," the source said. File photo of workers standing near a gas pipe during the launching ceremony of construction work of the TAPI project on the Afghan section of the project.
Leaders of the four countries performed the ground-breaking of the project in December but the project hasn't moved significantly since then. The source said the project has not moved forward because of unresolved issues like the economic viability of the project, security of supply and tie-up of debt and equity.
Turkmenistan's Turkmengas has been appointed as the consortium leader. TAPI pipeline is nearly 1,kilometers long, with km in Afghanistan and nearly km in Pakistan.
The inch diameter pipeline will run from Turkmenistan's Yoloten-Osman gas field to Herat and Kandahar province of Afghanistan, before entering Pakistan. Turkmenistan would export 90 million standard cubic meters per day of gas through TAPI, with Afghanistan getting 14 mmscmd and India and Pakistan 38 mmscmd each.
The gas will be sourced from the Yoloten Usman field, which ranks amongst the five biggest fields in the world. The field is being developed by Turkmenistan national oil firm TurkmenGas.
India had previously used its position as world's fastest-growing energy consumer to renegotiate gas import deals with Australia, Russia and Qatar. Renegotiating terms of the year deal to import 2.
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