Your Excellency Mr. MaksatBabayev, Deputy Chairman of Cabinet Ministers of Turkmenistan,
Your Excellency Mr. Murat Archayev, State Minister and Chairman of Turkmengas,
Your Excellency Ms. NargisNehan, Acting Minister Mines and Petroleum of Afghanistan,
Your Excellency Jam Kamal Khan, Minister of State for Petroleum and Natural Resources of Pakistan,
Ladies and Gentlemen,
At the outset, on behalf of the Government of India I take this opportunity to thank the Government of Turkmenistan for hosting this 25th Steering Committee meeting of TAPI Project. I would also like to thank the Government of Turkmenistan for extending a warm
welcome in this beautiful city of Mary to me and my delegation. We are honoured to be here.
Excellencies,
I am accompanied by a strong delegation comprising representatives from our Ministries of Petroleum, External Affairs and also GAIL, which represents India in the TAPI Pipeline Company Ltd (TPCL). Also, for the first time we have senior official level representation
from Indian Oil Corporation Ltd (IOCL), which is India’s largest public sector refiner and marketing company. It is also one of the largest offtaker of gas, including from the proposed TAPI pipeline. The presence of a strong Indian delegation here testifies
the importance India attaches to this ambitious transnational pipeline project. This is evidence and affirmation of our commitment to TAPI.
Excellencies,
Today, India is world’s 3th largest energy consumer and 4th largest importer of LNG. With India continuously growing at 7% annually, with projections suggesting higher growth, our energy requirement is also increasing steadily. International Energy Agency (IEA)
and OPEC in their Energy Outlooks have projected that the demand for energy sources in India will continue to grow while the demand in other major economies will either stagnate or slow down.
Our government, therefore, is working to diversify sources of all forms of energy. In the hydrocarbon sector, we are investing in overseas producing assets. Just two weeks ago, during the State visit of Prime Minister NarendraModi to UAE, Indian Public Sector
companies acquired 10% stake in Lower Zakhum offshore oil field. In 2016, the same companies had acquired stakes in producing fields in Russia at a cost of US $ 5.5 billion. Oil and Gas majors such as Saudi Aramco, ADNOC and others are looking to invest substantially
in India, while Shell, Rosneft, BP and others area already present.
Excellencies,
Our Prime Minister has been emphasising the four pillars of his energy vision: i) Energy Access, ii) Energy Efficiency, iii) Energy Sustainability and iv) Energy Security. We see reflection of all these four pillars of PM’s vision in the TAPI Pipeline. We believe
that TAPI, once completed, has the potential to link not only our four partner countries, but also Central Asia with the Indian subcontinent.
TAPI’s uninterrupted gas flow will be extremely important for our energy security. GAIL has already committed an offtake of 38 MMSCMD of the total 90 MMSCMD gas that the pipeline will carry. However, our requirement of gas is expected to grow more.
Prime Minister Modi’s vision sees India as a gas based economy. The state of Gujarat, where he served as Chief Minister for over 15 years uses around 26% gas in its energy mix, whereas the national average around 7%. In order to achieve a higher national average
in usage of gas, which is one of the cleanest hydrocarbon energy sources, Government of India is adding over 15,000 KM pipeline and related infrastructure to the already existing 15,000 KM pipeline. These pipeline networks have been expanding after taking
into account the supply of gas from the proposed TAPI pipeline. In addition to the pipeline infrastructure, on the consumption side, we are working on reviving over 150 fertilizer plants, setting up 120 City Gas Distribution (CGD) networks and also working
on plans to revive 25,000 MW gas based power plants which are idling due to lack of affordable gas. Today, India is implementing infrastructure projects worth around $ 10 billion for boosting usage of gas in India. These are some of the examples of infrastructure
being established to promote use of gas in India. Put simply, India wants TAPI to play an important part in India’s rising prosperity.
While we have LNG terminals on our West coast and two LNG terminals are coming up on the East, we do not have any transnational oil or gas pipeline. Today, given the energy requirements in India, there are several gas pipeline proposals before us. We are, however,
strongly committed to TAPI Pipeline project. Our Prime Minister NarendraModi during his visit to Turkmenistan in July 2015 termed the TAPI Project as the most significant initiative in our relationship. This could transform regional economic cooperation and
bring prosperity along the route.
In the last two years, the TAPI pipeline project has made progress. I would like to make special mention and congratulate H.E. GurbangulyBerdimuhamedov for his dynamism and vision. If ground is being broken, and a dream taking shape, then much of the credit
is due to him.
The TAPI project is more than the sum of four nations’ interests. It creates a benchmark for regional cooperation in a region that could certainly do with more cooperation.
The energy demand of countries of South Asia can be adequately met from one of the world’s largest natural gas reserves in Turkmenistan. During our discussions today, I believe, TPCL will provide us an update on the status of development of Galkynysh gas block.
India believes that successful implementation of TAPI project will seed multitude possibilities.
Excellencies,
Vision must accommodate practical concerns, particularly, if we want to move with speed. While we have had 24 Steering Committee Meetings, there are still a number of issues to be finalised and sorted out. I would like to take this opportunity to highlight
some of the issues that need urgent attention:
i) finalising and signing of bilateral Host Government Agreements (HGA) by TPCL with Afghanistan and Pakistan. HGA, in turn, should take into account the elements already agreed to, in 2010, by all four parties in the Inter Government Agreement (IGA) and Gas
Pipeline Framework Agreements (GPFA),
ii) approvals that need to be obtained by Afghanistan and Pakistan at Government levels to conclude Host Government Agreements;
iii) early identification of Financial Adviser,
iv) details of cost and a full picture of financing of the project;
v) early development of the Galkynysh field
vi) early implementation of demining work enroute Afghanistan and Pakistan
vii) analysis of Socio-Economic Impact along the TAPI route.
A quick progress on these issues will help us in taking an early Final Investment Decision.
Excellencies,
We would like to propose an addition to the agenda for today’s Steering Committee meeting: Discussion on Business Principles. We also have some concerns regarding the security and predictability of supply of gas and would need contractual assurances. GAIL has
been engaged in discussions with companies of the other three countries and with TPCL. The Steering Committee is seized of the matter, but, there has been no forward movement in this regard. I am, therefore, proposing this agenda point for discussion in the
Steering Committee.
On our part, we are working with pace and commitment on the infrastructure required in our country. As the largest offtaker of gas from the pipeline, we have already started developing required gas pipeline infrastructure in India and developing plans for marketing
and utilisation of TAPI gas. As I mentioned earlier, we are working on reviving hundreds of fertilizer and power plants and also implementing hundreds of CGD (City Gas Distribution) networks. In fact, any further delay in the implementation of the pipeline
will adversely affect our plans due to want of reliable and assured supply of gas. The main elements under the Business Principles are:
i) full indemnification of each shipper for any failure by TPCL to deliver gas under the respective GSPA (Gas Sales Purchase Agreements);
ii) charging of transportation tariff only for the gas actually delivered at respective offtake points; and
iii) suspension of delivery of gas to all in the event of any security situation/sabotage affecting any shipper.
India strongly feels that these key issues need to be addressed to make this a win-win project. I, therefore, urge the Steering Committee to discuss this additional agenda point and further guide TPCL.
Excellencies,
I am confident that with our collective efforts, we will be able to address and resolve the pending issues and make the dream of TAPI Pipeline project come true. I may add that India is ready to host the next Steering Committee meeting in India around September
2018 and to work with all its capacity towards shared growth.
Thank you.
Excellencies and Colleagues,
TAPI project is a reflection of the common desire of the four member countries to re-connect ourselves. We are seeking to revitalise an age-old legacy of our mutually enriching interactions. The ambitious project would mark the first step towards fulfilling
the vision of an economically integrated region from Central Asia to South Asia.
Without a doubt, the economic benefits of the TAPI Gas Pipeline will be immense because our economies will move much more together, much faster, much more rapidly and in a much more integrated way if we address the issues that are before us. I am confident
that the flow of natural gas will bring in its wake industrial and economic development in our countries. This will not only enhance prosperity through employment generation, but more importantly, also provide socio-political and economic stabilization in
this region. In our inter-connected and globalizing world, ‘economics’ does shape ‘politics’. It is our belief that the TAPI Gas Pipeline will transform the politics of this region and help us to build trust and confidence among ourselves as neighbours and
partners in progress.
Excellencies,
India continues to remain committed to play its rightful role with responsibility in implementing the over 1,800-km gas pipeline, thereby working towards enhancing India's energy security.
With tomorrow’s ground breaking near Serhetabad, we are going to witness another important milestone in the TAPI Pipeline project. I have no doubt that decades later, when the history of this period is written, the TAPI project will stand out as a watershed
development ushering in peace, prosperity and stability in this region. Let us seize this moment in history and make the TAPI Gas Pipeline a reality at the earliest and reopens the historic route reconnecting Central Asia and South Asia.
Excellencies,
As a future step and commitment of India towards this ambitious project, I take this opportunity to convey that India is ready to host the next Steering Committee meeting in India around September 2018. The dates can be finalised after consultations through
diplomatic channels. During the next Steering Committee meeting, we can take stock of the progress that TPCL has been entrusted to make towards early implementation of the project. We look forward to seeing you all in India for the next Steering Committee
meeting, it will be an honour to host you all.
I would like to thank the Government of Turkmenistan for the warm hospitality extended to us and for the excellent arrangements made for hosting this meeting.
Once again, on behalf of people of India, I reaffirm our commitment to the early operationalization of the TAPI Gas Pipeline Project. I am sure the deliberations of this meeting will bring greater clarity to resolve the pending issues, thereby benefiting us
all.
Thank you.