Top > World > 2006 > February > 2006-02-16

Pipeline Deal in Afghanistan Close

If all goes well this week, Afghanistan may soon be on its way to having a gas pipeline going through its territory. The ninth meeting of oil ministers for Turkmenistan, Afghanistan, and Pakistan started Tuesday in Ashkabad, Turkmenistan`s capital. And according to Afghan officials, the three countries are closer than ever to a deal.

Even India is interested in the project, and Indian officials will be attending the Ashkabad meeting as observers. "Manmohan Singh told me, `We have a population of 1.3 billion people, and we cannot continue to grow without power," says Mr. Mir Sediq, Afghanistan`s Minister for Mines and Industry. "One or two pipelines are not enough. We`ll need three or four.` "

The final cost of the project is currently estimated at $3.7 billion, up from the $2.5 billion price tag estimated in the 1990s. Unocal is now out of the picture, replaced by Argentine energy company Bridas. For Afghanistan, this project could be a welcome source of jobs and income. After the three-year construction period, annual revenue for the Afghan government would reach around $350 million to $450 million.