(IGP) Special Current Affairs Material for IAS (Pre) 2013
Chapter: Gist of Press Information
Topic: GSPA - Triumph of
Multilateralism, Regional Cooperation and Economic Integration
Q. What are the highlights of Gas Sale and Purchase Agreement,
GSPA with Turkmenistan/ TAPI pipeline?
Ans. The signing of Gas Sale
and Purchase Agreement, GSPA with Turkmenistan on the 23 May, 2012 marks a major
step towards India’s energy security.
It will turn the dream of bringing natural gas from the
Galkynysh field, better known by its previous name, South lolotan field in
Turkmenistan into a reality.
The gas will come via Herat and Kandahar in Afghanistan and
Multan and Quetta in Pakistan to Fazilka in India through the 1700 km long
Turkmenistan– Afghanistan–Pakistan–India, TAPI pipeline when it is complete by
The pipeline will carry 90 million metric standard cubit metres,
mmscm of gas per day. Of this, Afghanistan will get 14 mmscm and Pakistan and
India each 38 mmscm of gas.
The deal was signed between the Indian public sector company,
Gas Authority of India and Turkmenistan’s national oil company, Turkmengaz.
While the GSPA could be construed by some as a mere contractual document, for
India this particular GSPA is a triumph of multilateralism, regional cooperation
and economic integration”.
Q. How TAPI pipeline will help all its four countries?
Ans. The spin-off benefits of this pipeline
will encourage these four countries to emphasise trade and investment issues and
enable them to build trust and confidence among themselves as neighbours and
partners in progress.
The pipeline will help India and Pakistan diversify their gas supply. India will
benefit as the delivered price of gas on the Indian border works out to $10-12
per mm Btu as compared to $16 per mm Btu rate of gas imported in ships in its
liquid form, LNG.
Turkmenistan will benefit as it wants to triple annual gas exports to 180
billion cubic metres by 2030, looking beyond its traditional partner Russia to
wider export markets.
Afghanistan apart from getting 14 mmscm gas per day, will get 18 million dollars
per year as transit fee. In return it will provide security to 735 km stretch of
the pipeline running over its land.