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India-Pakistan-Afghanistan-Turkmenistan to Jointly Own TAPI Project
Aug 22, 2015

In a breakthrough on the construction of a $10-billion, 1,800km energy lifeline connecting central and south Asia, India and three other signatories to the TAPI pipeline recently decided to jointly take ownership of a pipeline from Turkmenistan to India through Afghanistan and Pakistan. 

Key Points

  • Turkmenistan proposed that its state-owned company TurkmenGaz would lead the consortium for TAPI project with majority investment. All sides endorsed the proposal. 

  • It was agreed that all sides would make investment in the project subject to techno-commercial viability, shareholders agreement and investment agreement. 

  • The compromise formula was agreed upon after reluctance of foreign firms to participate in the project. 

  • French giant Total SA had initially envisaged interest in leading a consortium of national oil companies of the four countries in the TAPI project. But it backed out after Turkmenistan refused to accept its condition of a stake in the gas field that would feed the pipeline. 

  • Since the four state-owned firms, including GAIL of India, neither have the financial muscle nor the experience of operating a transnational pipeline, an international company is needed to build and operate the link which would pass rebel-infested territories of Afghanistan and Pakistan.

  • The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for a 30-year period and will be operational in 2018. 

  • India and Pakistan would get 38 mmscmd each, while the remaining 14 mmscmd will be supplied to Afghanistan. 

  • TAPI will carry gas from Turkmenistan's Galkynysh field, better known by its previous name South Yoiotan Osman that holds gas reserves of 16 trillion cubic feet. 

  • From the field, the pipeline will run to Herat and Kandahar province of Afghanistan, before entering Pakistan. In Pakistan, it will reach Multan via Quetta before ending at Fazilka (Punjab) in India.


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