Ministry still not so sure of Turkmen gas

South Block officials point out that Turkmenistan’s gas production last year was 58 billion cubic metres (BCM), of which 35 BCM was exported to Ukraine and smaller volumes to Iran and Russia. About 11 BCM was used for domestic consumption.

The projection is that Turkmenistan will increase its production to around 120 BCM by 2007. However, sources said, Turkmenistan has committed large amounts of this gas to Russia through a 20-year contract signed by Gazprom in April 2003.

In fact, nearly 70 BCM of the projected 120 BCM is believed to be contractually committed to Gazprom.

The MEA has conveyed this to the Petroleum Ministry and has indicated that taking into account Turkmenistan’s commitments to Ukraine and Iran as well as its own domestic needs, there will be little available for further export. Though different figures are being projected about Turkmenistan’s production potential, the MEA still has doubts about the feasibility of the project on a commercial basis.

The ADB study talks of the pipeline terminating at Fazilka in India, which clearly indicates that the Indian market is crucial to the commercial viability of this project. This too has been conveyed to the Petroleum Ministry through a communique at the highest level in February first week by the MEA.

A firm view on the project will, however, be taken after a proper assessment and a detailed study of the ADB report. Till then, New Delhi will be cautious in its response.

While it’s clear that the Afghan President may have to wait longer for an Indian response on the subject, he utilised his discussions with Prime Minister Manmohan Singh today to convey that Kabul had taken up with Islamabad the possibility of a trade corridor between India and Afghanistan through Pakistan. He promised to pursue this further.

Besides, India and Afghanistan also signed two MoUs on cooperation in civil aviation and information and broadcasting today. New Delhi also announced that Indian Airlines will resume services to Kabul after nearly a decade in the forthcoming summer schedule. The airline has already put in its request with the Directorate General of Civil Aviation to operate the first flight on March 31.

The Delhi-Kabul flight will have a stopover at Amritsar. The airline plans to operate two services a week and deploy an Airbus 320 on the sector. Besides, New Delhi has also agreed to fund and execute the Pul-e-Khumri power transmission line to Kabul which is facing acute power shortage.