New Delhi, August 23 - Neftegaz.RU. 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 in view of the slump in global energy markets, a top source said.
The 4 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 % of the prevailing crude oil price. This translates into a price of about $7.5 per million British thermal unit (mmBtu) at current oil prices at the Turkmen border.
Added to this would be transit fee and transportation charges which would jack up the rates to over $10.5 per mmBtu at the Indian border, the source said. For a consumer, the price would be around $13 per mmBtu after adding local taxes and transportation charges.
«This rate in the present global energy scenario is unacceptable. And so taking into cognizance of the current gas market, India has proposed for re-negotiation of GSPA,» the source said.
The price of Turkmen gas is more than double of the $3.6 per mmBtu rate paid for post natural gas producers in India. Leaders of the 4 countries performed the ground-breaking of the project in December 2015 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 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.