Monday 23 July 2012

TAPI OR IP for gas in Pakistan


There are two options in front of Pakistan government either to choose TAPI or IPI for overcoming its energy crises and running its industries.

Considering about IPI, the last 'I' is now no more and that is of India not interested in this project as lot of pressure from superpower is coming and there tense relation with Pakistan make them to look forward to augment their energy resources with TAPI project only. Pakistani government on the other side is keen to look forward with this project due to a nice offer by Iran to construct a gas pipeline which will be funded by commercial banks.
If the local companies take participation in this project the cost of project will come down.The project costing around US$ 1-1.2 billion. While an equal amount of project TAPI project in which four countries  i.e Turkmenistan, Afghanistan, Pakistan and India are participating. The gas resource will be Turkmenistan which is known to be one of the largest gas reserve in the world is looking forward to do trading in Asia and get there economy exposure. While both Pakistan and India are looking to get overcome the energy crises. Afghanistan are somewhat on the same ship as of Pakistan and India but moreover the interest of Americans are cultivating more and more in this project. However they are keeping an eye on Talibans as if they target this 1680 km long pipeline so they are ready to defend it. The pipeline will run from the Turkmenistan gas fields to Afghanistan. It will start from the Dauletabad gas fields and run into Afghanistan alongside the highway running from Heart to Kandahar and then via Quetta and Multan in Pakistan. The final destination of the pipeline will be Fazilka near the India-Pakistan border. With one of this reason America want Pakistan to think about TAPI and refrain IP project. With just not only gas pipeline Iran is looking forward to construct an oil refinery in Gwadar.

The decision for any of the gas pipeline is crucial for Pakistan. Pakistan has a big advantage of dealing IP project rather than TAPI but for all that they require some strong decision and large amount of affluence which are hurdles for pakistan in the project.