News: Trans-Afghan Pipeline Meeting Takes Flying Start in Turkmenistan
Ashgabat, 14 February 2006 (nCa) --- The ninth meeting of the steering of the Trans-Afghan Pipeline (TAP) project was off to a flying start Tuesday morning. In the opening session the participants presented some vital facts and reassured each other of continued cooperation. Top officials from Afghanistan, Pakistan, India and Turkmenistan interacted with each other in friendly atmosphere, full of confidence and hope.
Here are the glimpses of the opening session:
The 9th session of the Trans-Afghan Pipeline (TAP) project steering committee started today in Ashgabat. The top representatives of Turkmenistan, Afghanistan, Pakistan and India made speeches at the opening session.
Deputy prime minister of Turkmenistan responsible for oil and gas sector, Mr. Ataev welcomed the delegations and remarked that the changes, occurring in the years of independence, have brought economic development and prosperity to Turkmenistan. "Turkmenistan is unique country with 45 billion tons of petrol equivalent and its annual gas production potential amounts to 240 bcm", he said.
"Turkmenistan has exported in 2005 45.5 bcm of natural gas – to Russia, Ukraine and Iran. And its export capacity is 100 bcm per year. Turkmenistan is interested in development of transport infrastructure for export of its hydrocarbon resources and it is based on the principle of multiple pipeline structure. In this context Turkmenistan is interested in promotion of TAP pipeline project. Intergovernmental agreement on this project was signed in May, 2002. Asian Development Bank participates in the project as consultant on financial and technical issues. Bank prepared the feasibility study on TAP project and renders legal services on implementation of project."
"The projected length of the pipeline is 1680 km. 145 km – on the territory of Turkmenistan, 735 km – in Afghanistan, 800 km – in Pakistan. The projected piping capacity of pipeline is 30 bcm annually, the piping pressure is 100 atmospheres, the diameter of pipe would be 56 inches. Six compressor stations are required. One station will be constructed in Turkmenistan at the starting point, 3 stations would be constructed in Afghanistan and two of them would be installed in Pakistan. The projected cost of TAP pipeline is 3.3 billion USD."
"Asian Development Bank has completed the feasibility study of the project and it showed the viability of project. Since Islamabad steering committee meeting in April 2005, ADB has completed huge amount of work. So, the project is not in stagnation. "
"Indian delegation is also attending the session and we hope they will take part in TAP project."
“US company “De Golyer & MacNaughton” has conducted the audit of Gas reserves of Daulatabat gas field and according to the estimates the amount of reserves is 4.5 trillion cu m of gas.[?]”
“Delegations have visited Daulatabat gas field to acquaint with infrastructure.”
“Turkmenistan considers TAP pipeline as priority direction for export of gas because of geographical proximity and because its realization will boost economic development of the region.”
At the end of his speech Ataev wished all participants of the session success and expressed confidence that after this meeting the TAP project will be put into practical realization.”
Mir Mohammad Sediq, Afghan minister for mines and industries was given the floor next. Conveying greetings from President of Afghanistan Hamid Karzai, he noted that time had come to implement the TAP project.
“The stagnation of TAP project was attributed to security situation in Afghanistan”, he said. “I met with Turkmen top officials, with General Musharaf; everybody supports the TAP project. It is real.”
Mir Mohammad Sediq told about positive changes in Afghanistan now both in political and economic spheres. He noted the role of international financial institutions, making big contribution to development of Afghanistan. Minister remarked that recently in the London conference Afghanistan had received pledges for 10.5 billion USD for development purposes.
"Time has arrived to move forward the TAP project. The atmosphere for pipeline is now secure and friendly."
"Afghanistan is obliged to give multiple entry visas to all who participate in the project."
"National infrastructure is developing. Government has real power and governmental projects are implemented. Security is guaranteed. National army of Afghanistan has increased. The systems for attraction of new investments have been worked out. Armed forces of NATO and USA are present in Afghanistan. The construction of such highways as Kandahar-Kabul, Kandagar-Herat and others would be completed in near future. The future TAP pipeline will be laid via secure path", stated Afghan minister for mines and industries.
Minister for mines and industries of Afghanistan expressed the hope that in future his country would also be able to export some of its volumes through the TAP project. He informed that fresh hydrocarbon reserve deposits were discovered in south-western and south-eastern Afghanistan. On 14 May 2006 an American company will present information on hydrocarbon reserves in Afghanistan to the government of Afghanistan according to the results of satellite mapping.
At the end of speech minister for mines and industries of Afghanistan called on India for participation in TAP project.
Amanullah Khan Jadoon, Pakistani minister for petroleum and natural resources expressed thanks for hospitality of Turkmen party and noted the importance of efforts of ADB in realization of TAP project. Pakistani side also expressed pleasure on participation of India in the meeting as observer. The minister noted that gas demands India and Pakistan are such [huge] that each of these countries could use a pipeline [independently], but Pakistan is ready to work with India on this [TAP] gas pipeline.
"All parties have shown interest and seriousness. I am sure we will continue to work together. We hope that TAP will be realized in near future."
"Of course Pakistan is looking for new sources for import of gas and in this context gas can be imported from neighbor country Turkmenistan. In spite of this, if to be honest, Pakistan concerns are availability of long-term reserves of gas for supply and security issues."
"Our nations have to take decision to move the project ahead. We have no more time for talks."
Then Pakistani minister stressed three positive aspects of TAP project:
- TAP pipeline will provide energy security in the region.
- Ensuring of Pakistani economic stability, earning of transit income; prospect of participation of Afghanistan as exporter on account of its own new reserves; increase of job places.
- Creation of energy corridor and prospective for oil pipeline along with gas pipeline.
Pakistani minister expressed hope that the following issues will be discussed within the meeting: gas availability, security issues, gas pricing, project structure.
Dinsha Patel, Indian minister of state for oil and gas said that TAP project will bring economic benefits to all parties. Even if India is not participant in the project, it is interested in development of TAP gas pipeline, added he.
"One of the crucial reasons to support TAP is natural gas, which is good energy source. And India is interested in import of LPG, because India desires to diversify basket of its energy sources."
Minister also said that two issues of high risk that exist usually in such projects are security issue and financing issue. He also stated that completed ADB feasibility report had proved that gas pipeline should be extended to India, because it is a good market. That will decrease the marketing risk. If India will participate in the Project it will be called TAPI.
“We have huge demand for gas. And we agree with ADB that gas pipeline should be extended to India. But we have issues, which have to be resolved… issue on availability of gas resources to provide supplies within 25 years.”
Then minister noted that agenda of meeting includes the certification report on Daulatabat deposit. ADB also will present project structure and investment system details. These are key issues of the gas project.
Intergovernmental agreement, which exist between Turkmenistan, Afghanistan and Pakistan, will be discussed. And in the case of participation of India in TAP project, the agreement would be amended, stressed Dinsha Patel.
Then Dan Millison head of ADB group on supervision of TAP gas pipeline project delivered a speech. He said that almost 4 years ago ADB was invited by TAP governments for participation in the project as partner on development. ADB supports the project because it will ensure security issues, will develop trade in the region and solve transport issues. ADB has rendered assistance in preparation of feasibility study and in coordinating the efforts of TAP governments, analysis of market, security estimate and drafting of agreements. Recently the estimate of underground storage in Pakistan was completed. Preliminary estimate of security situation is also finished. ADB has arrived at conclusion that project has no technical limitations and economic or ecological obstacles.
Dan Million pointed out the following issues to promote the project:
- confirmation of availability of reserves. “we saw newly drilled well on Daulatabat deposit and we are glad. ” The feasibility study depends on supplies of gas at suitable prices,” ADB expert said.
- Financing project structure.
- Attraction of the private sector. The private companies have not yet expressed interest in the project. The wide publication of feasibility study will ensure interest.
Dan Millison also remarked that ADB welcomes the participation of India to TAP gas pipeline. “Taking into account the dynamics of world development, TAP gas pipeline is a competitive project in the South Asian region”, he said.
newscentralasia.com |
