Govt informed the delay in tapi gas intake

• India’s withdrawal from Tapi to make the project is not viable for Pakistan.
• Islamabad will lose $ 700-800 million a year in revenue from transit fees.
• Senior Mull Deferment employees or withdrawal from $ 13bn project.

ISLAMABAD: In a major development, Pakistan has advised to delay any commitment to gas intake by Turkmenistan under Turkmenistan-Afghanistan-Pakistan-India (TAPI) project project up to at least 2031, The news reported on Friday.

The recommendation, by Wood Mackenzie International Counseling, comes as Pakistan is already facing a surplus of imported LNG due to the dramatic decline in domestic gas consumption, said senior employee of the Ministry of Energy.

Counseling has sparked emergency discussions in the oil department, where senior officials are seriously considering information on either Turkmenistan’s notification of possible postponement or even disconnecting from the $ 13 billion gas pipeline.

The warning comes amid increasing challenges in the management of existing contracts and Pakistan’s infrastructure.

Along with this domestic overdose crisis, Pakistan also reviews its strategic position in Tapi, especially in the light of India’s ongoing indecision.

According to senior officials, if India officially withdraws from the project, the pipeline will become effectively TAP (Turkmenistan-Afghanistan-Pakistan)-a model that Islamabad considers financially lime.

Without India’s participation, Pakistan will lose about $ 700-800 million a year during revenue from transit fees.

Instead, we will have to pay $ 500 million a year in Afghanistan for gas transit.

When added to the gas base price of $ 7.5 per MMBTU, the total cost will exceed the price of expensive RLNG imports – making the project financially unsustainable.