Turkmenistan and six international oil and engineering firms have formed a group to link the gas resources of Turkmenistan with markets in Pakistan and possibly India.
Unocal Corp. is the major stakeholder in the group, called Central Asia Gas Pipeline Ltd. (CentGas).
CentGas is planning a 2 bcfd, 790-mile pipeline from the Dauletabad gas field in southeastern Turkmenistan to Multan, Pakistan. An initial memorandum of understanding on the project was signed by Turkmenistan and Pakistan in 1995 (OGJ, May 29, 1995, p 21).
A 400-mile extension to the New Delhi area is under consideration.
The CentGas group is made up of Unocal Corp. 46.5%, Saudi Arabia's Delta Oil Co. Ltd. 15%, Turkmenistan 7%, Japan's Indonesia Petroleum Ltd. and Itochu Oil Exploration Co. Ltd. 6.5% each, South Korea's Hyundai Engineering & Construction Co. Ltd. 5%, and Pakistan's Crescent Group 3.5%. Russia's Gazprom has indicated an interest in taking the remaining 10%.
A Unocal subsidiary will serve as development manager for CentGas.
Dauletabad
DeGolyer & MacNaughton Corp. has pegged Dauletabad gas reserves at more than 25 tcf. The firm says the field's reserves will meet the requirements of the CentGas pipeline, assuming production rates of about 1.5 bcfd for 30 years or more.Turkmenistan says Dauletabad has produced more than 2 bcfd in the past and is capable of producing that volume today.
The Turkmen government has guaranteed deliverability of 25 tcf to the CentGas pipeline. Most or all of this gas will come from Dauletabad.
The project
The Turkmenistan-to-Pakistan pipeline will be built at an estimated cost of $1.9-2 billion. An additional $600 million would be required to build a 400-mile extension to India.Completion of the central Asian line is slated for early 2000. To meet this deadline, the group will have to start construction early next year.
While the formation of CentGas is a major step forward, the project still faces significant challenges.
The partners must finalize financial arrangements and reach a transit agreement with Afghanistan.
Last week, Arghanistan's Taliban government announced on state-run radio that it would resist all pressure to sign a pipeline deal with any particular company.
Afghan Deputy Foreign Minister Sher Abbas Stanekzai said, "By no means will we sign any deal under any pressure that ignores the interests of the people and the country." Stanekzai said he had met with a Unocal delegation, which he claims promised to open an office in war-torn Kabul.
The Unocal-led group and Argentina's Bridas Sapic have been planning parallel Turkmenistan-to-Pakistan pipeline projects (OGJ, July 21, 1997, p. 23). Bridas opened a large office in Kabul earlier this year.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
