Saturday 9 October 2010

The TAPI Pipeline-Mutually Beneficial Interest.

Almost every time the TAPI pipeline gets mentioned as a central part of Western geopolitical thinking with regards Afghanistan, one is labellelled a "conspiracy theorist" or a Marxist-Leninist or hard left ideologue who believes cynically that material gain only dominates the decisions of governments.

That the TAPI pipeline has been an essential goal does not at all mean that it was the only goal from the outset or that certain members of the political establishment in NATO nations did not sincerely believe that the construction of the pipeline might not be of mutually beneficial interest for that region and the West.

Those who continue to maintain that the War in Afghanistan is crucially concerned with liberation only never mention the pipeline, even though a case can and has been made by Zbigniew Brzezinski that the TAPI is essential to bind competing states such as Pakistan together with India and draw Afghanistan into an orbit favourable to the West.

That is the line of those such as Bhaskar Balakhrishnan in The Hindu Business Line.

For those who live in the business community in India, the TAPI is a known fact and a great opportunity, one that has all the benefits in that Western nations are sending the bulk of the troops out to fight whilst those in India see it without ideological lenses.

So Balakhrishnan wrote on October 1 2010 an article entitled TAPI-More than Just Gas, one that proves beyond doubt the thinking behind it. Something not emphasised by Western governments nor even debated by either supposedly opposed political parties in Parliament in Britain.

The recent signing of agreements for the TAPI pipeline in Ashgabat by ministers from India, Pakistan, Afghanistan, and Turkmenistan in the presence of the Asian Development Bank (ADB) representative is a welcome development that could usher in a new chapter in regional cooperation.

This project, which enables rich gas deposits in landlocked Turkmenistan to be pumped to consuming countries such as India, Pakistan and Afghanistan, has the potential to foster stronger regional economic cooperation.

The agreements were inked at the four-party Ministerial Steering Committee for the project, which India joined in 2008. The ADB had supported this project and funded the preparatory work.

The 1,680-km-long pipeline with a total gas capacity of 90 million cubic metres per day (mmscmd) carries gas from Turkmenistan through Afghanistan and Pakistan to Fazilka, on the Indian border. India is expected to get 38 mmscmd of gas; the rest will go to Afghanistan and Pakistan.

India has emphasised that to make this project successful, the transit fee for the gas through various countries should be kept at a minimum, the security issues must be properly addressed and there should be complete clarity on the institutional mechanisms for this, and the pricing and other gas sales purchase issues should be resolved to the full satisfaction of all partner countries.

These issues will need considerable further negotiations. However, the political will to proceed with the project should be welcomed.

The role of the ADB is important as it represents a neutral and objective player, along with technical, financial and legal support. But issues related to transit of gas and oil are quite complicated, and require a strong spirit of co-operation to resolve.

In our region co-operation on trans-boundary oil and gas pipelines is in its preliminary stages, complicated by political disputes, conflicts, and instability, which threaten the supply and security of
investments.

One way to get around these issues would be to follow the
principles in the Energy Charter Treaty (ECT) signed in Lisbon in 1994, in order to give a sound legal framework for energy transit in Europe.

Some 51 countries have joined this Treaty, and a further
Energy Charter transit Protocol is being elaborated to further clarify issues relating to transit arrangements and to avoid disputes in this
area.

Several non-European countries have joined the ECT,
including Australia, Japan, Turkmenistan, Kazakhstan, and Kyrgyzstan.

Twenty-four countries and ten organisations are observers to the ECT, indicating strong interest in this subject. The list of observers includes Pakistan, Iran and Afghanistan.

Given India's interest in meeting its energy requirements through pipelines from producing countries in Central Asia as well as East Asia, there are good reasons for India to take a more active role in the ECT, including participation as an observer or member.

The ECT principles have stood the test of time, and are the most universal international instrument of this kind available today.

Its principles could be regarded as fair and equitable, and could be usefully applied to gas pipelines in our region. It could help build confidence among the partners in the TAPI project and make the project more attractive to investors.

The ADB could draw upon the ECT forum to bring together the
four countries to resolve various issues involved in the pipeline project.
Dispute settlement mechanisms would also be possible under the ECT
principles.

The TAPI project has had a difficult birth, and the
conflicts in the region have halted progress several times over the past
years.

However, the project has gained momentum due to the
vigorous promotion by Turkmenistan's leadership. The ADB has completed feasibility studies and has indicated it would consider financing the $7.6-billion capital cost of the project.

The economic benefits of the project are obvious. Turkmenistan has the world's 4th largest reserves of natural gas, despite some controversy over the actual volume of reserves.

Indications are that Turkmenistan would connect the bigger gas field at Yolotan rather than the originally envisaged Dauletabad to the pipeline.This gas field is estimated to hold some 60 trillion cubic metres of gas, enough to supply the pipeline for over 200 years.

The Herat-Helmand-Kandahar section of the proposed pipeline will pose security challenges, due to Taliban activity in this area.

If the security situation can be controlled, it could become one of Afghanistan's biggest projects. Afghanistan could earn as much as $300 million per year in transit fees, and support a large number of industries along the pipeline route.

Pakistan would be able to meet its urgent need for power from gas-based power plants. Not surprisingly, the US has supported this project which offers India an alternative to the Iran-Pakistan pipeline, and the prospect of economic development for Afghanistan.

Over and above the direct economic benefits, the TAPI
project could be the beginning of constructive regional economic cooperation between Central and South Asia for mutual benefit. It could help bring peace, stability and badly needed development to Afghanistan.

India and Pakistan could show the world that disputes are
not the only items on their bilateral agenda.

This region, long plagued by conflicts and violence would
then be able to focus its efforts on economic development and move ahead. Though coming late, India's decision to participate actively in the project is to be welcomed.


This is not news in Britain.

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