Indian Cabinet to Take Up TAPI Pricing Issue

India’s union cabinet on Thursday is likely to consider pricing issue for Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. The Cabinet has already approved and rectified the agreement for this project.

Business Line has reported that the cabinet is likely to discuss price for gas purchase and transportation cost. India's share from this project stands at 41.173 billion cubic meters (BCM). It aims to transport 27.5 mmscmd in the first year, 35 mmscmd in the second and 38 mmscmd in the third year.

The Gas Sale and Purchase agreement (GSPA) for this project has not been signed yet.

This agreement contains all the contractual terms and conditions, including the price/pricing formula of Turkmenistan gas. The import of gas is scheduled to commence after five years of the signing of GSPA.