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To: RaceBannon

Bump for index


32 posted on 07/03/2004 11:34:51 AM PDT by JoeSixPack1 (Freedom Stands Because Heroes Serve.)
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To: Dog; marron

http://www.eia.doe.gov/emeu/cabs/afghan.html


From the DOE

"...Afghanistan as an Energy Transit Route

Due to its location between the oil and natural gas reserves of the Caspian Basin and the Indian Ocean, Afghanistan has long been mentioned as a potential pipeline route, though in the near term, several obstacles will likely prevent Afghanistan from becoming an energy transit corridor. During the mid-1990s, Unocal had pursued a possible natural gas pipeline from Turkmenistan's Dauletabad-Donmez gas basin via Afghanistan to Pakistan, but pulled out after the U.S. missile strikes against Afghanistan in August 1998. The Afghan government under President Karzai has tried to revive the Trans-Afghan Pipeline (TAP) plan, with periodic talks held between the governments of Afghanistan, Pakistan, and Turkmenistan on the issue, but little progress appears to have been made as of early June 2004 (despite the signature on December 9, 2003, of a protocol on the pipeline by the governments of Afghanistan, Pakistan and Turkmenistan). President Karzai has stated his belief that the project could generate $100-$300 million per year in transit fees for Afghanistan, while creating thousands of jobs in the country.

Given the obstacles to development of a natural gas pipeline across Afghanistan, it seems unlikely that such an idea will make any progress in the near future, and no major Western companies have expressed interest in reviving the project. The security situation in Afghanistan remains an obvious problem, while tensions between India and Pakistan make it unlikely that such a pipeline could be extended into India and its large (and growing) gas market. Financial problems in the utility sector in India, which would be the major consumer of the natural gas, also could pose a problem for construction of the TAP line. Finally, the pipeline's $2.5-$3.5 billion estimated cost poses a significant obstacle to its construction.


36 posted on 07/03/2004 11:42:00 AM PDT by Shermy
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