It seemed a pipedream all along. At a meeting of petroleum ministers in Delhi, Pakistan said it would accept whatever transit fee formula is agreed upon between India and Afghanistan for the 1,700-kilometre Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project.

That could pave the way for work to start on the project that has been plagued by problems for two decades. Meanwhile, India has also offered to export petroleum products by road, rail to Pakistan. There is also a proposal to jointly develop a gas field in Turkmenistan. While the Tapi pipeline will provide gas to north India, it will provide millions of dollars to Afghanistan in transit fees. Most importantly, this project has the support of the US.

If the current positive vibes continue, then work on the project could start soon. That would also mean that India need not look at the Iran gas option since Turkmenistan has the fourth largest gas reserves globally. It remains to be seen whether the entire exercise is a lot of hot air or business interests will prevail.

STRICTLY BUSINESS
After the US, it’s the turn of the European Union (EU) to tighten the screw on Iran. The EU has announced a complete ban on oil imports from Iran. The conflict is likely to escalate as Tehran has threatened to retaliate by blocking the Strait of Hormuz, through which a fifth of global oil supply passes.

(This story was published in Businessworld Issue Dated 06-02-2012)