GAIL signs Gas Sales & Purchase Agreement for purchase of gas from Turkmenistan

GAIL (India) Limited on 23rd May, 2012 has signed a Gas Sales & Purchase Agreement (GSPA) for purchase of gas from Turkmenistan to be transported through the Turkmenistan-Afghanistan-Pakistan- India (TAPI) Pipeline. The GSPA was signed by Mr. B. C. Tripathi, CMD, GAIL and Mr.Sakhatmurad Mamedov, Chairman, National Gas Company, TurkmenGasin the presence of Shri S. Jaipal Reddy, Hon’ble Minister of Petroleum & Natural Gas, India.

The gas source for the pipeline would be Galkynysh (formerly Osman-Yolotan) in Turkmenistan which is estimated to have gas reserves of 13-21 TCM (Best estimates of 16 TCM). The 1680 km, 56 inch diameter pipeline will orginate at South Yolotan-Osman in Turkmenistan and will traverse 145 km in Turkmenistan, 735 km in Afghanistan and 800 km in Pakistan before entering India at Fazilka in Punjab.

Turkmenistán would be exporting 90 MMSCMD through this pipeline of which 14 MSCMD would be taken by Afghanistan and 38 MMSCMD each by India and Pakistan. The pipeline will be built at an estimated investment of US$ 7.6 billion approx.