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http://www.dailytimes.com.pk/default.asp?page=story_28-12-2002_pg1_1

Trans-Afghan gas pipeline deal signed


* Jamali says the accord will draw foreign investors

ASHGABAT: The leaders of Afghanistan, Pakistan and Turkmenistan on
Friday reached a long- awaited agreement for a pipeline to carry
Turkmenistan’s natural gas to the Indian Ocean via Afghanistan and
Pakistan.

Afghan interim leader Hamid Karzai, Prime Minister Zafarullah Jamali and
Turkmen President Suparmurat Nayazov signed the ambitious accord to
build a 1,500-km two billion dollars trans-Afghan gas pipeline. “We are glad
that this important agreement has been signed, as this is a significant step
towards the realization of the project,” Turkmenistan’s Nayazov said.

The feasibility study for the link, carried out by the ADB, would be
completed by July/August 2003, after which the international companies
would have the chance to form a consortium to develop the project, he
noted. A Turkish company, Chalyk Holding, has said it was ready to
participate in the construction of the pipeline, he said. The pipelines deal
to connect Dauletabad gas fields to seaports in Pakistan across the
mountains of Afghanistan brought to an end 20 years of laborious
negotiations mired in regional conflicts.

Analysts have said the pipeline would open up Turkmenistan’s vast natural
gas reserves to the wider world for the first time and would attract
millions of dollars of transit tariffs to Afghanistan’s ruined economy.
However, industrial experts say that the pipeline, which could have a
capacity of 20 billion cubic metres, will only be feasible if it supplies gas to
India as well as Pakistan, but tensions between the two nations are high.

Nayazov said the three leaders hoped that the Indian leadership would join
in the project. “We will be working on this and making every effort,” he
said.

The three countries are still in talks with the ADB and other multinational
lending agencies on whether the pipeline can be extended to India,
according to an official in Islamabad quoting Thursday by the specialist
International Oil Daily.

Jamali said the signing of the accord would “draw foreign investors to the
project.”

Karzai for his part said that the pipeline project woul serve the energy
needs of all three countries and “help improve the situation in the region
and bring economic growth to our states.”

The three leaders will meet again in Kabul on September 2003, Nayazov
said. —AFP


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