Islamabad: Pakistan and Turkmenistan have signed the final version of the Host Government Agreement to facilitate the execution of USD 10 billion Turkmenistan, Afghanistan, Pakistan, India (TAPI) Gas Pipeline network, a news source reported.
The total cost of the project has been estimated to be USD 25 billion. Turkmenistan will spend 85 per cent of total cost of the project. These will include USD 15 billion to develop gas fields and USD 10 billion to build the gas pipeline. The participating countries will contribute 5% each.
Under the signed agreement, Pakistan will facilitate the TAPI Pipeline Company Limited (TPCL) to lay a gas pipeline in its territory. Against this, Pakistan will receive a transit fee. The cost of gas from the TAPI pipeline will be 20% cheaper compared to imported LNG.
The participating countries have already agreed on a transit fee of 49.5 cents per Million British Thermal Unit (MMBtu).
Federal Secretary Petroleum, Mian Asad Hayauddin from the Pakistani side and CEO of TPCL Amanov signed the agreement. Federal Minister for Petroleum and Natural Resources Ghulam Sarwar Khan and Foreign Minister of Turkmenistan Rashid Meredov were also present on the occasion.
