Global Majors Link TAPI Investment With Turkmenistan Gas Field Development

Global energy firms that showed enthusiastic response at TAPI pipeline road shows held in Singapore, New York and London have linked their investment with their shares in the development of the Yolotan-Osman gas field in Turkmenistan, The News has reported.

The government of Turkmenistan has clearly conveyed that its law does not permit outsiders to develop the gas field. This dispute is a blow for Pakistan which is in dire need of gas to meet its energy demand. The dispute may delay the mega project that aims to export up to 33 billion cubic metres (bcm) of natural gas per year through a 1,800-kilometre (km) pipeline from Turkmenistan to Afghanistan, Pakistan and India.

“Turkmenistan seems worried about the US resolve to develop the field at any cost as it may invite the wrath of Russia. Russia does not want to provide any access to US companies in Turkmenistan oil and gas reserves. However, US Company Chevron has established its office at Ashgabat with the aim to develop the gas field,” said an official. The Manila based Asian Development Bank (ADB) wants US companies Chevron and Exxon to develop the upstream gas field, said the official. However, Turkmenistan wants to develop it on its own.

Pakistani offcials have said that any further delay in the project would be unaffordable for the country and Turkmenistan would lose Pakistani buyers, the newspaper added.