Turkmenistan and Pakistan to hold talks on TAPI project

Turkmenistan and Pakistan to hold talks on TAPI project

Turkmenistan and Pakistan will soon hold talks on the insurance of natural gas supplies through the future Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, according to the newspaper The News, citing sources from the Petroleum Division, aware of the project.

The report says Turkmenistan offers Pakistan a scheme of insurance coverage of gas transit loss, which may occur on way to Pakistan border from Turkmenistan border through territory of Afghanistan.

It follows from the statements of the Pakistani top official, that this subject will be further detailed during the visit of the Turkmen delegation to Islamabad by mid of January 2020.

The side would also agree on a clause that will ensure the arrival of gas on Pakistan border and then Turkmenistan will qualify for payments from Pakistan.

The upcoming meeting will also discuss Pakistan’s request to develop a new gas pricing formula. Pakistani side proposes to use as a basis for calculating the cost of gas to be imported via TAPI, the reference price for LNG.