In a move aimed at expediting progress of the delayed Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, India has shown great alacrity in responding to feelers from neighbouring Pakistan which is seeking urgent liquefied natural gas (lNG), by planning to extend its existing pipeline in Punjab up to the Wagah border, though any physical progress in the matter is subject to clearance from the Government.
State-owned Gas Authority of India ltd (GAIl) has a pipeline which currently goes up to Jalandhar in Punjab, and the company's Chairman B C Tripathi has confirmed that Pakistan has sought around 1.5 million tonnes of natural gas from India as it is currently facing an acute energy crisis.
He said that economically the project of supplying gas to the neighbouring country is "quite viable" as the existing GAIl pipeline that goes till Jalandhar can be further extended by 110 km up to the Wagah border to facilitate the requirement.
However at the same time, Tripathi said that the project is subject to approval from the Government and as of now discussions for seeking the Centre's okay are on, while simultaneously talks on gas price are also on course.
According to sources, India's readiness to Pakistan's request should be seen in the context of the TAPI project where gas sourced from Turkmenistan would be supplied into India through a pipeline which would pass through the Central Asian nation via Iran and Pakistan.
New Delhi's keenness to help Islamabad meet its energy needs, sources said, is in anticipation that Pakistan would extend its cooperation in expediting the delayed TAPI project when the pipeline will pass through its territory.
Incidentally after several delays, the TAPI project recently gained momentum with all the four nations agreeing to set up a joint venture company later this year to finally execute the ambitious pipeline project.
GAIl, sources in the know said, has the required infrastructure to execute Pakistan's request, as that country does not have any lNG import facility.
Though discussions are on regarding the pricing of gas to be given to Pakistan, sources said that lNG imports to India are in the range of $13-14 per mmBtu, and therefore after including customs duty, pipeline transportation charges and other local taxes, the delivered price to Islamabad could be somewhere around $21 per mmBtu.
Pakistan on its part though is keen that India supplies gas to it on concessionary rates considering the fact that it is in a sorry state of affairs in terms of gas production and is on a verge of an energy crisis, sources said.
Once the transportation of gas to Pakistan is approved by the Government, they added that it would be supplied through the extended pipeline.
Sources directly in the know refused to be drawn into the politics of the entire issue and said that discussions are being held on the fact that the proposal is economically feasible for India and therefore the political aspect of it should be best left to the Government.