Peace pipeline

Officials from India and Pakistan have announced they are moving closer to inking a deal to import gas from Turkmenistan via a pipeline through Afghanistan. The 1,700-kilometer "TAPI" duct will transport over 30 billion cubic meters of gas annually from fields in Dauletabad in southeastern Turkmenistan.

In high-level talks in New Delhi this week, Indian Oil Minister S. Jaipal Reddy said "considerable progress" has been made on the project. His Pakistani counterpart, Asim Hussain, added at the meeting that "the issue of transit fees is being discussed with Afghanistan. A joint strategy is also being created between India and Pakistan."

When the four countries signed a framework agreement back in 2008, the Asian Development Bank estimated the cost of the TAPI pipeline project at around $7.6 billion.

After the talks in New Delhi, the Indian oil minister emphasized that the pipeline would help address the energy needs of the region. Reddy also clarified that security concerns were discussed with Afghan officials, who themselves sought to provide reassurance that necessary measures would be taken to protect the TAPI project.

"We consider it a pipeline of peace," Reddy said. "Everyone needs gas."

Tool for stability

Improving cooperation between the nuclear armed and traditionally hostile neighbors is seen as a positive development towards establishing long term stability in South Asia.

Pakistan gave India a "Most Favored Nation" trading status when the countries' commerce secretaries met in New Delhi in November last year to discuss energy and bilateral trade. Indian commerce chief Rahul Khullar expressed his desire to boost bilateral trade to $6 billion within the next three years. Currently, total trade amounts to $2.7 billion.

Reddy said that Pakistan had pledged to also consider a proposal to import Indian petroleum products, highlighting the cost advantages for Pakistan. India, meanwhile, offered electricity to Pakistan through its power plants in Punjab and Gujrat.

The Indian oil minister went on to express disappointment over a failed Iran-Pakistan-India gas pipeline project. With the US leaving no stone unturned in trying to corner Iran over its nuclear ambitions, any possibility of India, Afghanistan or Pakistan going against the Obama administration is somewhat remote. India imports 12 to 14 percent of its oil from Iran, making the Islamic Republic India's second largest source of oil after Saudi Arabia.

There was significant domestic pressure in India as the analysts and masses called for a stern stand against the US in determining trade relations with Iran. With other regional countries, including China, also refusing to follow US directions, India is still continuing with the import of oil from Iran. In this regard, Reddy said that New Delhi would continue importing oil from Iran and was not bound by new sanctions imposed by the European Union on the Islamic Republic earlier this week.

"We, as a member of the UN, are obliged to follow UN sanctions. Other sanctions imposed by big blocs of countries, we can have some freedom there," he added further.

Improving relations and cooperation in the energy sector between India and Pakistan will go a long way to establishing harmony and stability in the region. Pakistan is experiencing a severe energy crisis whilst India needs to feed its rapidly developing economy. Mutual dependency and cooperation in this sector with projects such as the TAPI pipeline can also ensure smoother political ties.

Author: Mohammad Aasim Saleem
Editor: Darren Mara