Natural Gas Asia

Wednesday, October 22, 2014

Pak Seeks 50 cents As Transit Fee From India for TAPI Gas

Pakistan may ask for 50 cents per MMBTU as transit fee from New Delhi while Kabul has sought 41-45 cents per MMBTU from Islamabad for the gas to be imported from Turkmenistan under $7.6 billion TAPI gas line project during recent talks held in India, The News reported Friday.

Afghanistan has said that it may not use the gas from Turkmenistan under TAPI project as it lacks infrastructure and gas network to absorb the gas. The country is only interested in transit fee. However, Pakistan and India are persuading Kabul to have its share of gas.

If Kabul sticks to its stance then its share will be equally divided between Pakistan and India. He said Pakistan has also asked India for the transit fee equal to the transit fee that Afghanistan will charge from India but India is not in a mood to entertain this proposal saying the length of pipeline running through Afghanistan is much more than that of Pakistan and it will pass through difficult terrain.

The report added that India will have to pay two transit fees, one to Afghanistan and other to Pakistan while Pakistan will have to pay transit fee only to Afghanistan and Pakistan hopes to get approved its proposal in the next round of talks on transit fee to be held in Kabul on April 19.

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