TAPI Transit Fee Finalized

Pakistan, India and Afghanistan had agreed on a transit fee rate for the TAPI gas pipeline project, and that a final round of negotiations will be held on May 24 to lock down the deal.

The Express tribune citing Federal Minister for Petroleum and Natural Gas Asim Hussain reported that the three participating countries had agreed on a transit fee rate of 49.5 cents per Million British Thermal Units (mmbtu), during talks recently held in Islamabad.

“India will pay 49.5 cents per MMBTU as transit fee each to Afghanistan and Pakistan. Pakistan will pay an equal amount to Afghanistan only. India has already signed the gas sales purchase agreement with Turkmenistan, and Afghanistan is to soon sign a gas price deal with the latter,” Hussain said.

Pakistan will get $217 million as transit fee from India, which will be paid to Afghanistan, the report said.

Gas imports under the TAPI project would be cheaper as compared with gas import from Iran under the IP project.

Iranian gas will cost $13 per mmbtu and Turkmen gas $11 per mmbtu, if the crude oil price is $100 per barrel, the report said citing a government official.