TAPI pipeline: ADB roots for MNC grouping

ADBs demand is that the role should include,besides development and operation of the planned pipeline,a stake in the development of upstream South Yolotan-Osman gas field which would feed the pipeline.

The gas field,like other onshore fields,is quite challenging with high sulphur and high pressure,and requires considerable ability and technical capability. And so does the 1,735-km route going south from Turkmenistan and then east through Herat and Kandahar in Afghanistan,said sources.

Turkmenistan,which does not allow equity to Western companies in onshore project,has declined the ADB request,Indias petroleum ministry officials quoted Pakistani officials as saying.

The issue came up at the meeting between Petroleum Minister S Jaipal Reddy and his Pakistani counterpart Asim Hussain where it was decided that both nations would use their goodwill to persuade Ashgabat as any decision by the four nations had to be acceptable to all involved.

Both sides also agreed in-principle to jointly explore the possibility of obtaining certain share in upstream Turkmenistan gas source. India is prepared to make a giant effort, Reddy told reporters. ADB is slated to approve a technical assistance fund of 1.40 million next month to assist the TAPI nations in selecting and establishing a consortium company with commercial partners for the pipeline.