(IGP) Special Current Affairs Material for IAS (Pre) 2013 - PIB "Topic : GSPA"
(IGP) Special Current Affairs Material for IAS (Pre) 2013
Chapter: Gist of Press Information Bureau Articles
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 2018.
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.
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