AMMONIA

U.S. Gulf/Tampa: Word about January business may come after Green Markets goes to press. Expectations are that prices may remain flat to a $10/mt uptick to December’s $460/mt DEL.

Sources report that the recent short-term disruption of gas supplies in Trinidad ended Dec. 11, and ammonia production is getting back to normal. PotashCorp’s number one plant, which went down as a result of the brief outage, is back up and running.

In the meantime, while there has been talk of recent interest in barge trades, nothing new has been reported. Sources say this market remains thinly traded, especially on an FOB basis, making price discovery difficult. Some have suggested an NA for this category, others a differential off another major trading location, such as Tampa.

U.S. ammonia imports were up 40 percent in October, according to the U.S. Department of Commerce (DOC), to 690,516 st from the year-ago 492,040 st. July-October imports were up 15 percent, to 2.56 million st from 2.2 million st.

Eastern Cornbelt: Field activities were over in the region at mid-month, thanks to an onslaught of winter weather that brought snow, strong winds, cold temperatures, and freezing rain to most areas. About the only activity reported last week was some dealer-to-dealer trading as suppliers try to fill up holes after the busy fall application season.

Sources continued to quote the anhydrous ammonia market in the $670-$680/st range FOB regional terminals for the last prompt sales, with spring prepay tons offered at the $675-$685/st FOB range out of Illinois locations last week.

Western Cornbelt: With fall fertilizer movement generally stalled due to weather conditions, sources said about the only thing taking place was some filling for spring. Several dealers said they expect more calls from farmers with money to spend as the end of the year approaches.

Sources tagged the ammonia market at $640-$660/st FOB regional terminals, depending on location and time of delivery. There were reports of fill tons moving into southeastern Nebraska at the $665/st DEL level from southern production points.

Southern Plains: Several sources said they expect strong year-end buying from farmer customers with cash to spend after a successful crop year. Ammonia continued to move to the field in parts of the region last week, but the pace on next year’s corn ground had slowed considerably.

Many dealers were glad to catch their breath. “We have been working since mid-August without a break,” said one, describing heavy fall volumes of phosphates, potash, and ammonia. Added another, “Fall has been good for movement and open weather for us. We’ve really just gotten started with topdressing wheat. The colder weather has slowed down the wheat and it’s not as likely to get burnt from high N rates.”

The ammonia market had backed off somewhat, with sources quoting the dealer market at $590-$605/st FOB production points and roughly $625/st FOB pipeline terminals in Kansas for prompt tons. Supplies had reportedly loosened up since the heaviest fall demand period. “We never really reached allocation, but got darned close,” said one contact.

South Central: Sources reported minimal activity on the ammonia front in the South Central region, with spring prepay at the $650/st mark FOB Memphis, Tenn., and the last prompt sales out of Henderson, Ky., reported at the $670/st FOB level.

Middle East: The ammonia market in the region got very interesting last week.

After a December 10 CNBC report on American companies and their offshore affiliates doing business with Iran, Transammonia announced it would wind down its activities with Iran by the end of the first half of next year (see story, p. 11).

The European office of Trammo has been moving ammonia from Iran to various buyers willing to take the Iranian tons. Industry sources say Transammonia was handling spots sales rather than contract tons.

Sanctions against buying Iranian material are having an impact on ammonia sales from the country.

A sale to India early last week was reported at $348/mt FOB. The price is about $50 lower than what is being charged by the Arab producers in the Gulf region.

The lower price of Iranian material is causing many in the industry to discount the price of Iranian ammonia when looking at price trends in the region.

Sources say buyers for Iranian ammonia are limited. The most recent sale is slated for India. Other sales from Iran have been sent to China and Taiwan.

Deals earlier this year also went to South Korea, but that market is now closed to Iranian producers.

Asian sources say the South Koreans are backing U.S. and European-sponsored sanctions against Iran.

Other potential buyers of Iranian material, such as Turkey and Brazil, are also shut out because funding for the deals ultimately depends on American or European banks, which will not support any financial institution that supports trade with Iran.

The Transammonia move could have a rollover effect on other ammonia traders, said one Asian source. Other companies that have deals with American firms could face similar pressure to withdraw from the Iranian market.

One of the major buyers of Iranian ammonia is Mitsui. In a statement to CNBC, Mitsui acknowledges its purchase of Iranian ammonia, but adds that it does not sell the material to the buyers in the United States.

The main markets for Iranian tons are India and Taiwan, say sources.

Once the Iranian deals are removed from the regional price spread, sources say the Arab Gulf market price is $390-$410/mt FOB. One trader added that the bulk of the deals is just under $400/mt FOB.

Most of the sales made by the Arab producers are under long-term contracts with buyers around the globe.

Black Sea: The market in Yuzhnyy has remained quiet and stable.

Sources say prices remain hovering in the $390s/mt FOB.

UREA

U.S. Gulf: Although granular urea barges were moving higher last week, sources disagreed on how fast and how high. Most put the market within the $370-$380/st FOB range, with another contingent saying the market has reached into the $380s/st FOB, and some arguing that prices were as high as $383/st FOB. Others disagreed, saying forward product for the first quarter is garnering a higher level, not prompt. Sources said CF sold January barges at $385/st FOB, and worked price ideas up $5/st per month for February and then again in March.

October imports were up 27 percent, to 619,121 st from the year-ago 489,066 st, according to DOC. July-October imports were up 28 percent, at 1.79 million st from the year ago 1.4 million st.

Eastern Cornbelt: Granular urea continued to be quoted in the $420-$440/st range FOB regional terminals last week, with the low in Illinois and the higher numbers in the Ohio market on a spot basis.

Western Cornbelt: The granular urea market was tagged at $415-$435/st FOB in the region last week, with the low in Missouri and the upper end quoted by Iowa sources for spring prepay offers.

Southern Plains: Granular urea was tagged at $400-$405/st FOB the Tulsa market, with the low end reflecting new pricing from Koch FOB Enid, Okla. One source quoted prepay urea offers around the $415/st FOB mark last week. “The fall has all been about P and K and ammonia,” said another contact. “Now they’re starting to talk about urea for wheat topdressing and spring use.”

South Central: The granular urea market was tagged at $405-$410/st FOB regional warehouses, with most locations at the lower end of that range. List prices from some suppliers were as high as $415/st FOB in the region.

Southeast: Granular urea was reported at $425-$430/st FOB port terminals to the dealer.

India: The number of reports that India will call a tender soon is picking up.

Earlier this month rumors that India would tender for 400,000-500,000 mt were discounted once all the contracts for imports were added up with domestic production and demand. Now it seems that demand is greater than expected.

Sources say weather conditions have been good enough that farmers are demanding more urea before the season ends.

Adding to the view that a tender will be called are reports that some awards from the previous tenders will not be honored. Sources say, however, that the subject of that speculation is a company that has not traditionally handled urea shipments, and one that the Indian buyers reportedly did not expect to carry out its order.

Traders figure any tender call will involve material to be shipped in January or February. Sources say there is no rush to get material to the ports at this time, largely because the ports are congested with lots of incoming urea already.

At the same time the ports are jammed with incoming vessels, sources add that the inland transportation network is over-subscribed. Reportedly finding the right number of rail cars or trucks to move the urea to the necessary places in the country is getting harder each day.

While transportation issues abound for urea on order and as the powers that be contemplate authorizing another tender, discussions about how to handle urea in the next fiscal year are moving ahead.

According to local media reports, more members are being added to the advisory committee expected to submit a proposal to the council of ministers about changes in urea policy.

The council of ministers is expected to hear a report in mid-January about what to do.

The finance ministry reportedly remains adamant that urea prices be allowed to rise or fall based on market demands, and that more companies be allowed to import urea.

The agriculture sector is calling for a ceiling on prices, with subsidies to cover any differences between the imported or production cost and the maximum price.

And still others argue that urea imports should be limited to either state agencies or state-run industries.

The government wants to change the urea policy to avoid the heavy drain on the national treasury represented by subsidies to farmers to ensure cheap urea.

For the near term, however, Indian buyers will face a problem if they call a tender.

In the past, buyers could rely on competition among producers from China, the Arab Gulf, and the Black Sea. Now, however, China has increased its export duty to 110 percent. This leaves only the Arab Gulf and Black Sea to supply the necessary tons.

Besides the Arab producers, sources say Iran might be able to supply tons. India has not shown any hesitancy in buying Iranian material. (See AMMONIA: Middle East report.) The last few urea tenders included awards to Iranian suppliers as well.

Even with Iranian urea, the overall availability of urea is said to be tight. Indian buyers may have to resign themselves to having to pay more than $400/mt CFR in any upcoming tender.

The only hope the buyers may have – and sources say this seems to be part of the Indian thinking – is to wait while the global market softens. But with strong rumors of a major Indian purchase remaining and Pakistan’s need for 250,000 mt, few think the market will soften much.

Pakistan: Sources now say Pakistan will most likely not step into the market until mid-January. The main issue is paying for the urea the country needs.

Earlier this month the government estimated imports of at least 250,000 mt will be needed through the current application season. The shortfall came because natural gas is still being diverted from industries to households. The diversion has reduced the domestic urea output.

Sources report the Pakistan government is in talks with Saudi Arabia for another grant or loan program for urea purchases. In the past, the Saudis provided loans or grants that covered a few hundred thousand tons of urea from Sabic. Industry observers, however, say even if the Saudis come up with the money, no one is sure Sabic will have enough tons available to cover the order.

Middle East: Product remains tight from the Arab producers. Sources add that Iranian material is available, but not in quantities sufficient to force the regional price down.

A few extra cargoes may begin to appear soon. Sources report that some Vietnamese buyers are cancelling contracts from the Arab Gulf in favor of Chinese material.

The tonnage affected by the Vietnamese cancellations is not enough to dramatically move the market price, but enough to offer a few spot tons for the market to play with.

Prices have not shifted out of the $380s/mt FOB for prills and granular.

Black Sea: Even as prices showed a slight softening, reports widely circulated that Fedcominvest closed a large-quantity deal at $392/mt FOB.

Sources in Asia were taken aback by this report. Until this news came forward, industry observers had been watching the Black Sea price soften into the $370s/mt FOB. There was even talk of a couple of small deals that dipped into the upper $360s/mt FOB.

Now, however, sources are not sure what is going on. Many are willing to discount the Fedcom deal and stick with an unchanged price range of $370-$380/mt FOB.

China: The Chinese government has confirmed the 2011 export tax rates. As expected, the export rate will be 110 percent January through June and again November and December for urea. The months of July through October will have a rate of 7 percent.

The 2011 schedule differs from previous years by its compactness. In the past couple of years small windows of selling opportunities opened and closed throughout the year. This time, the selling season is one contiguous period of four months.

Sources report that the ports are currently backed up to such a degree that tons that were slated to have been loaded and gone by early December may not get shipped until mid-January.

Sources say there are numerous reasons for the delays. The most-often-cited reasons are changes in port priorities of what needs to be loaded or unloaded first, reduced port staff, and a rush to get ships into the ports to ensure the exported goods qualify for the lower tax rate.

One Asian trader said nailing down who will pay the extra cost of the vessels having to sit in a Chinese harbor is difficult. In some cases, the end user may require the trading house to swallow the loss. In other cases, the trader and buyer might split the costs. A lot will depend on the price of the urea, the contract, and the relationships between the traders and buyers.

Vietnam: Sources report Vietnamese buyers are scrapping contracts with Middle East producers in favor of deals with Chinese suppliers.

One trader noted that urea is still coming into Vietnam over the land border with China. Much of it, he said, is coming through in time-honored ways that often make it free of export and import duties.

NITROGEN SOLUTIONS

U.S. Gulf: UAN barges were called a flat $285/st FOB ($8.91/unit).

According to DOC, October imports were up a whopping 331 percent, to 318,199 st from the year-ago 73,895 st. July October imports were up 115 percent, to 669,773 st from the year-ago 311,454 st.

Eastern Cornbelt: The UAN-32 market was tagged in the $325-$345/st ($10.16-$10.78/unt) FOB range out of regional terminals, depending on location and time of delivery. Delivered UAN tons were quoted in the $335-$345/st ($10.47-$10.78/unit) range in the region.

Western Cornbelt: UAN-32 pricing covered a broad range at $320-$345/st ($10.00-$10.78/unit) FOB regional terminals, with the low quoted in southern Missouri. Dealer reference prices for prompt tons from some regional suppliers were quoted at the $340/st ($10.63/unit) FOB level at mid-month.

Southern Plains: The UAN-32 market remained at $315-$320/st ($9.84-$10.00/unit) FOB production points from prompt pull, with the upper end reflecting the reference price from Koch FOB Enid. One source talked about tight supplies, but added that continued dry conditions in western Kansas and south into Texas “may curb demand and take care of any supply problems that were expected.”

South Central: UAN-32 was quoted at $315-$320/st ($9.84-$10.00/unit) FOB regional terminals, with the upper end of the range quoted out of the Memphis market for prompt tons. Sources said new business was virtually nonexistent. “It’s like watching paint dry right now,” said one. “Not a whole lot of anything going on.”

Southeast: UAN-32 pricing was up slightly from last report at $295-$300/st ($9.22-$9.38/unit) FOB Norfolk, Va., and Wilmington, N.C. Sources said import vessels were being indicated at the $300/mt CFR level, down slightly from last report.

AMMONIUM NITRATE

U.S. Gulf: Prices were reported to have moved up slightly, to $320-$323/st FOB from a flat $320/st FOB.

Imports were up 124 percent in October, to 68,139 st from the year-ago 30,423 st. July-October imports were up 42 percent, to 175,107 st from 123,556 st.

Western Cornbelt: Ammonium nitrate was reported at $360-$385/st FOB in the region, with the upper end in the Iowa market.

Southern Plains: Ammonium nitrate had firmed to $345-$350/st FOB the Tulsa market, up slightly from last report.

South Central: Ammonium nitrate remained at $345-$350/st FOB regional terminals to the dealer.

Southeast: Ammonium nitrate was unchanged at $320-$325/st FOB Tampa.

AMMONIUM SULFATE

Eastern Cornbelt: Granular ammonium sulfate was pegged in the $280-$290/st FOB range and in very tight supply. One producer was reportedly still referenced at $247/st rail-DEL in the Midwest last week, but was offering no tons for sale at that level.

Western Cornbelt: Granular ammonium sulfate was pegged at $270-$290/st FOB in the Western Cornbelt region at mid-month. Effective Dec. 16, Agrium’s granular ammonium sulfate posting firmed to $310/st DEL in North Dakota, Minnesota, and Wisconsin.

Southern Plains: Granular ammonium sulfate was steady at $225-$265/st FOB Texas shipping points, with the low at Freeport and the upper end at Littlefield and Plainview.

South Central: Granular ammonium sulfate pricing was up from last report at $250-$260/st FOB regional terminals to the dealer.

Southeast: Ammonium sulfate was in tight supply, and prices were going up. Effective Dec. 16, granular ammonium sulfate postings from DSM Chemicals firmed $30/st to $255/st DEL in Georgia, $260/st DEL in Florida, and $240/st FOB Augusta. Standard pricing from the company was up as well, to $210/st DEL in Florida. Sources said pricing was not available from Honeywell due to the plant outage at Hopewell, Va.

PHOSPHATES

Central Florida: Waiting for the phone to ring and somebody asking to buy a railcar of prompt phosphate last week was like waiting for Godot – not likely to happen. Prompt sales out of Central Florida rarely happen at this time of year, and they may not for another month or so. That left the chance for prepay sales to blossom – but that didn’t happen last week, either.

Prepay, the hope of producers and traders in all domestic markets at this time of year, was iffy at best last week. Normally, farmers want to get rid of the excess cash they earned from a good season, so they can avoid having to pay taxes on the money. This year was good in terms of prices and yields and farmers do have the money, but so far they’re keeping their hands in their pockets.

A hard freeze swept into Central and South Florida last week, threatening citrus, strawberry, and other winter produce crops. Damage was reported in several South Florida counties, and additional damage was likely late last week as the cold continued. The loss of crops could result in higher prices at the grocery store. The good news was that hurricane season was over.

With no new prompt sales last week, the Central Florida DAP price range was unchanged from the previous week at $540-$550/st FOB. Smaller lots from traders could cost $5-$10/st FOB more. CF’s price was $540/st FOB. Mosaic’s price was $550/st FOB. MAP was listed at a premium of $10/st FOB in comparison to DAP. PCS Sales was making sales at comparable prices to the market. Griffons’ price for truck sales was $580/st FOB for DAP and $595/st FOB for MAP, but $5/st FOB less for rail.

U.S. Gulf: Buyers and sellers were a few dollars apart on what they thought a NOLA phosphate barge was worth last week, and nobody made a move.

Buyers were hovering around the $545-$547/st FOB mark, and sellers were offering in the $550-$555/st FOB range. The truth was, no one really had to have a barge last week and most won’t need anything prompt until February, when the spring season gets rolling. Then, shortly before Green Markets deadline, three NOLA DAP barges were sold.

Russian DAP was available for less than this week’s range, and that situation will likely continue until it is gone. The odd thing was, Russian DAP’s quality was as high as or higher than domestic DAP, but it has the stigma of being different.

However, it appeared the cheap phosphate barges that were available a couple of weeks ago were gone since none were sought or bought last week – not even an offer to sell at the lower price.

Warehouse prices were essentially unchanged last week, and should hold steady into the new year, when farmers actually need phosphate for the spring crop and can apply it. Cold and snow was blanketing much of the Midwest last week, and that made it rather difficult to apply fertilizers even on frozen ground.

Crop prices were still mostly moving north late last week on the futures board. Corn for December 2011 improved from $5.33/bushel to $5.36/bushel, and December 2012 followed the trend, going from $4.975/bushel to $4.99/bushel. Soybeans for November 2011 were up from $12.04/bushel to $12.1675, while November 2012 soybeans were running $11.63/bushel. Wheat for July 2011 bucked the trend, falling from $8.50/bushel the previous week to $7.995/bushel late last week, while July 2012 was $8.09/bushel.

The NOLA DAP barge market range moved up from the previous week’s range of $531-$547/st FOB to a flat $550/st FOB, based on the three barges sold. MAP was bringing a premium of $10/st FOB for NOLA barges and $10-$20/st FOB higher at terminals, although the premium will likely increase as the spring season approaches. Prices will probably be firm or higher for the next month or so.

Eastern Cornbelt: DAP out of regional warehouses remained in the $595-$605/st FOB range, with MAP quoted at $605-$620/st FOB in the region. 10-34-0 – if you could find any – was quoted at a firm $560-$580/st FOB. Most sources said 10-34-0 tons were simply not available, however.

Western Cornbelt: DAP remained in the $590-$600/st range FOB regional warehouses. An eastern Iowa contact quoted the dealer market at the $595/st FOB level, with MAP at $615/st FOB for spring tons. 10-34-0 pricing for very limited tons was pegged in the $560-$580/st FOB range at mid-month.

Southern Plains: DAP pricing had reportedly slipped to $590-$595/st FOB the Tulsa market, with MAP at the $615/st FOB mark for limited tons. Both were down considerably from last report.

10-34-0 was reportedly unavailable in the region last week. “Price is secondary to supply,” said one contact. “Spring could be ugly, at some point price will begin to curb demand.”

Effective Dec. 1, Agrium’s phosphoric acid postings firmed to $1,100/st rail-DEL for both super phosphoric acid (SPA) and merchant grade acid (MGA) Colorado, Kansas, New Mexico, Oklahoma, and Texas.

South Central: DAP pricing out of the regional warehouse system was pegged at $580-$590/st FOB, down from last report. No current spot quotes were available for MAP. TSP tons, where available, were pegged at $490-$515/st FOB warehouses to the dealer.

U.S. Export: No export phosphate sales were found last week, but an offer was made by a major player for a small sale to Belize at the current flat range price of $600/mt FOB.

Other Latin American buyers were in the market, seeking to buy larger amounts at $575/mt FOB. It seemed unlikely any American producer or seller of American phosphate would bite at that price, since the domestic market was bringing substantially more and inventories were low. The most likely outcome would be a sale of Russian DAP/MAP.

China’s 110 percent tariff for its phosphate exports will continue until May, then resume at that level in October of next year. That will lower supply to meet at least the same or greater demand as this year, so export prices looked more likely to increase than decrease next year, at least early in the year. That will also help push India into agreeing to higher prices for the DAP it imports.

With no new sales last week, the export DAP price range
remained at a flat $600/mt FOB.

China: The Chinese government has confirmed the 2011 export duty rates for TSP, DAP, and MAP.

The easiest schedule is that of TSP. The export duty rate is 7 percent for the entire year.

Exports of MAP and DAP from January through May will be taxed at 100 percent, as will October through December sales. The intervening months of June through September will have an export rate of 7 percent.

POTASH

Eastern Cornbelt: Potash was steady at $500-$525/st FOB regional warehouses, depending on grade, supplier, and location.

Western Cornbelt: The potash market remained in a broad range at $510-$525/st FOB, depending on grade, location, and time of delivery.

Southern Plains: Sources continued to quote the potash market in the $505-$515/st range FOB regional warehouses. Potash pricing FOB Carlsbad, N.M., was steady at $480/st for 60 percent standard, $482/st for 62 percent standard, $485/st for 60 percent granular and 62 percent fine standard, and $493/st for 62 percent granular.

South Central: The potash market was tagged at $495-$500/st FOB most regional warehouses. Sources said the dealer market had eased back from spot pricing above the $500/st FOB mark in early December. “There is some cost averaging going on between old tons and newer stuff,” said one contact.

Potash barges were reportedly trading at the $470-$475/st FOB level at the Gulf.

Southeast: Rail-delivered potash was quoted in the $535-$545/st range last week. Sources were uncertain if any sales have been made at those levels, however, as many are still waiting on fill tons ordered earlier.

U.S. Imports: October imports of potassium muriatic were up 75 percent, to 982,131 st from the year-ago 560,255 st. July-October imports were up 90 percent, to 3.12 million st from the year-ago 1.65 million st.

Norway/Belarus: The Belarusian Potash Co. (BPC) has signed a long-term agreement with Yara International ASA, Norway, for the supply of potash. BPC – the joint venture trader of Uralkali and Belaruskali – will supply Yara with 1 million mt/y of potash for five years from potash per year from 2011 though 2015. The price will be calculated according to a combination of market indicators.

BPC says the long-term contract with Yara is one of the largest in the potash industry’s history. It adds: “The scope of the contract demonstrates that the global potash market is recovering and that the demand for potash continues to grow.” Yara confirmed the deal. The company has been a major critic of potash pricing in recent years, citing the impact of potash costs on its NPK blends.

China: The Chinese government set the export duty rate for 2011 for MOP and SOP at 105 percent year round.

SULFUR

Tampa: Last week in the sulfur industry was not ho, ho, ho, but more like ho-hum. In an industry where little changes on a weekly basis, it was much slower.

There was no real change in the supply and demand situation – supply was strong and demand somewhat lean – and no problems with transportation.

Green Markets went to press a day early this week, and refinery capacity rates, which are published by the U.S. Department of Energy, were not available.

No discussions, talks, or negotiations were underway last week to set a new price for molten sulfur to Tampa.

Vancouver: China was said to be continuing to resist price increases for new sulfur shipments, which was having the effect of depressing world prices last week, but not much. Vancouver depends heavily on sulfur sales to China.

U.S. Imports: October imports were up 60 percent, to 166,375 st from the year-ago 104,185 st. July-October imports were up 78 percent, to 809,104 st from 453,428 st.

MARKET NOTES

China: A table of the Chinese export tariff schedule for 2011, effective Jan. 1, is shown below.

	Jan.	Feb.	Mar.	Apr.	May	Jun.	Jul.	Aug.	Sept.	Oct.	Nov.	Dec.
Urea	110	110	110	110	110	110	7	7	7	7	110	110
TSP	7	7	7	7	7	7	7	7	7	7	7	7
MAP	110	110	110	110	110	7	7	7	7	110	110	110
DAP	110	110	110	110	110	7	7	7	7	110	110	110
NPK	110	110	110	110	110	110	110	110	110	95	95	95
N+P	7	7	7	7	7	7	7	7	7	7	7	7
P+K	7	7	7	7	7	7	7	7	7	7	7	7
SOP	105	105	105	105	105	105	105	105	105	105	105	105
MOP	105	105	105	105	105	105	105	105	105	105	105	105
GRP/RP	35	35	35	35	35	35	35	35	35	35	35	35

India: The government had signed an MOU with Ghana for a nitrogen plant. Ghana had indicated that it would be able provide the requisite quantity of gas for the project. Ghana is reported to have reserves of around 5 tcf, enough to fire a few large plants, including a fertilizer project. The following project is being considered by the Indian delegation: urea, 3,500 mt/d; ammonia 2,000 mt/d MTPD; project cost – US$1.17 billion; return on investment, 16-18 percent.

Pakistan: The country on Dec. 11 joined Turkmenistan, Afghanistan, and India in signing the long-awaited more-than-$7.6-billion gas pipeline project to help it meet its sharply rising industrial and domestic demands. The inter-governmental agreement (IGA) and the gas sales and purchase agreement (GSPA) were signed by Pakistan President Asif Ali Zardari, Afghan President Hamid Karzai, Turkmenistan President Gurbanguly Berdimuhamedov, Indian Petroleum Minister Murli Deora, and President of the Asian Development Bank Haruhiko Kuroda. The 1,680 km long Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, backed by the Asian Development Bank, will bring 3.2 billion cubic feet of natural gas per day (bcfd) from Turkmenistan’s gas fields to Multan in Central Pakistan, and end in the northwestern Indian town of Fazilka. Under the IGA, the four nations will commit to provide government support, including security, for the pipeline. Construction of the pipeline is likely to commence soon, and will be completed by 2013-14. The project would help overcome Pakistan’s growing energy crisis, which has caused electricity shortages and protests across the country. Under the agreement Afghanistan’s share would be 500 million cubic feet per day (MMcfd), Pakistan 1,325 MMcfd, and India 1,325 MMcfd.