OREANDA-NEWS. May 03, 2011. India is unwilling to pay Turkmenistan’s proposed price for natural gas from its Dauletabad field, which could be higher than the price of liquefied natural gas (LNG), the Economic Times of India reported.

India is willing to pay about USD 12.67 per million British Thermal Units (mBTU) of gas, while Turkmenistan is demanding price linkage to the market rate of LNG. The Turkmen demand could mean a price of USD14-15 per mBTU, an anonymous Indian official told the Economic Times. India will not invest in the planned Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline if it can import LNG more cheaply than it can buy Turkmen gas, the official added.

India is hosting a four-day conference of the Indian, Turkmen, Afghan and Pakistani oil ministers that began April 25, meant to reach agreement on price and supply terms for TAPI, Pak Tribune reported April 27. The four states signed an inter-governmental agreement on TAPI in December.

Meanwhile, China has issued a second USD 4 billion credit to Turkmenistan in exchange for future gas deliveries from the Southern Yolotan-Osman field, Lenta.ru reported April 27. China issued an earlier USD 4 billion credit in 2009.