India to ensure safe transit from TAPI; to pay $13 a unit | delhi | Hindustan Times
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India to ensure safe transit from TAPI; to pay $13 a unit

India will pay $13 for buying natural gas through the much-celebrated TAPI gas pipeline and will take indirect responsibility for safe transit of the fuel through high security risk areas in Afghanistan and Pakistan.

delhi Updated: May 28, 2012 00:47 IST

India will pay $13 for buying natural gas through the much-celebrated TAPI gas pipeline and will take indirect responsibility for safe transit of the fuel through high security risk areas in Afghanistan and Pakistan.

India on May 23 signed agreement to buy natural gas from Turkmenistan at a rate equivalent to 55 per cent of crude oil price which, at $100 a barrel, translates into $9.17 per million British thermal unit, sources privy to the development said.

After adding transit fee and transportation charges, the gas through Turkmenistan-Afghanistan-Pakistan-India (TAPI) line would cost $12.99 per mmBtu at Indian border, three times the price paid to ONGC and Reliance Industries for producing natural gas from domestic fields, they said.

The rate agreed to flies in the face of oil ministry which has been stonewalling any increase in price to be paid to domestic producers arguing that a higher gas price would lead to an increase in power tariff and cost of fertiliser, thereby entailing higher government subsidy outgo, they added.