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GAIL signs GSPA

GAIL signs GSPA
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In a major step forward on the $7.6-billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Turkmenistan’s national oil com­pany, TurkmenGaz, entered into gas sale and purchase agre­ement (GSPA) with GAIL (India). The GSPA contains all the contractual terms and conditions. GSPAs will be signed bilaterally between the members. Subsequent to the GSPAs, bids for building and operating the pipeline will be invited.

The GSPA, which envisages importing natural gas from Turkmenistan, was recently approved by the union cabinet. The project is supported by the US, unlike the Iran-Pakistan-India (IPI) pipeline project.

The pipeline is envisaged to be 1,680 km in length (144 km in Turkmenistan, 735 km in Afghanistan and 800 km in Pakistan). It will have the capacity to transport 90 mmscmd of gas, with 38 mmscmd each for India and Pakistan and the remaining 14 mmscmd for Afghanistan. The pipeline is expected to be operational in 2018 and supply gas over a 30-year period.

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