India seeks revision in price of gas via TAPI line

India has sought re-negotiation of the natural gas price it is to source through a proposed $10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline due to slump in global energy markets.

share this post:

Why in the news ?

  • India has sought re-negotiation of the natural gas price it is to source through a proposed $10 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline due to slump in global energy markets.

More about

  • The four nations to the pipeline projects had in 2013 signed a gas sale purchase agreement (GSPA) that benchmarked the price of natural gas that Turkmenistan is to export at 55 per cent of the prevailing crude oil price.
  • However the slump in global energy markets, India seeks revision in price.

TAPI project

  • TAPI gas pipeline project is a proposed trans-country natural gas pipeline from Caspian Sea, Turkmenistan to India through Afghanistan and Pakistan.
  • Out of total 1,814-kilometer gas pipeline , at least 816 kilometers of the pipeline will pass through the territory of Afghanistan. 
  • The TAPI Project is considered as an important initiative of these four countries to connect energy rich Central Asia with energy starved South Asia.
  • It marks a new dawn of economic engagement through regional connectivity by economically integrating region stretching from the Bay of Bengal to the Caspian sea.
  • From India’s perspective, TAPI Project will provide an alternative supply source of gas with dependable reserves leading to enhanced energy security.

Source

The Hindu Business Line