India May Pay $10 per unit For Turkmen Gas

India is likely to pay $10 per unit for the natural gas supplies from Turkmenistan via the TAPI gas pipeline.

A report published by Economic Times on Thursday said that this price will include $3 as transportation charges and transit fee.

Gas would be purchased at about $7 per unit at Turkmenistan but its cost would rise as it transits across two countries before reaching the Punjab border.

The deal is seen to be much cheaper than some long term LNG contracts. India pays about $16 per unit for LNG. Petronet LNG has recently contracted LNG import from Australia's Gorgon project at $15.8 per unit while Gail's 20-year contract with US' Sabine Pass works out to be around $10 per unit.

"The gas price will soon be placed before the cabinet for its approval. It will pave way for India signing a gas sale purchase agreement (GSPA) with Turkmenistan," a government official, attending the Asia Gas Partnership Summit in Delhi last week, said.

India plans to import 38 million standard cubic meters per day gas from the central Asian country, which will be more than the current output of the country's biggest gas fields in the D6 block.

Turkmenistan has agreed to supply 90 mmscmd gas to Afghanistan, Pakistan and India. India and Pakistan will get about 38 mmscmd gas each while balance will go to Afghanistan. The proposed pipeline will start from the Dauletabad gas field in southeast Turkmenistan and after 145 km stretch in the country enter Afghanistan. After traversing 735 km in Afghanistan and 800 km in Pakistan, it will cross into India.