Afghanistan earns $400M transit fee on TAPI gas pipeline

KHAAMA PRESS

Officials in the ministry of mines of Afghanistan announced Afghanistan has reached to an agreement over transit fees for Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline with the three nations. According to a press release issued by the ministry of mines of Afghanistan, the decision was taken by high level delegation of the four countries following a meeting in Islamabad. The statement further added, Afghanistan will receive $400 million annually as transit fees taking into consideration the price of gas in global markets. Afghan mines ministry officials also added an agreement is due to be signed between the four nations during the month of May to finalize the documents of TAPI gas pipeline project. However reports suggest India and Afghanistan have failed to agree on transit fee for gas passing through Afghan territory under the $7.6-billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project, officials said today. Consequently, Islamabad and New Delhi too could not agree on the transit fee for the segment of the pipeline passing through Pakistan, which has linked its fee structure to any India-Afghanistan agreement. The Trans-Afghanistan Pipeline (TAP or TAPI) is a proposed natural gas pipeline being developed by the Asian Development Bank.[1][2][3] The pipeline will transport Caspian Sea natural gas from Turkmenistan through Afghanistan into Pakistan and then to India. The 1,735 kilometres (1,078 mi) pipeline will run from the Turkmenistan gas fields to Afghanistan. Most of sources reports that the pipeline will start from the Dauletabad gas field while some other sources say that it will start from the Iolotan gas field. In Afghanistan, the TAPI will be constructed alongside the highway running from Herat to Kandahar, and then via Quetta and Multan in Pakistan. The final destination of the pipeline will be the Indian town of Fazilka, near the border between Pakistan and India.