Karachi : Pakistan and Turkmenistan have managed to reach an accord for delivery of 1.3 bcfd of gas from Turkmenistan at 69% of crude oil parity price under USD 7.6 bn Turkmenistan-Afghanistan Pakistan India (TAPI) gas pipeline project.
According to Alfalah Securities, the gas sales and purchase agreement (GSPA) is planned to be signed on November 15, 2011 in Ashkabad. The transit cost would be around 8% of the gas price. Gas is expected to reach Pakistan by December 2016 through the TAPI pipeline provided there are credible security arrangements available in Afghanistan. Turkmenistan has also proposed to increase gas throughput to 2.0 bcfd if an agreement is achieved on transporting ~700 mmfcd gas to Gwadar Port for eventual sale or export as liquefied natural gas (LNG). This deal bodes well to meet the growing the energy demands and the shortfall of gas. Pakistan is currently facing a shortfall of 1.5 to 2 bcfd gas which is expected to worsen further in the coming years.