Ashgabat, Turkmenistan, Apr. 7
By Huseyn Hasanov- Trend:
The shareholders of the TAPI Pipeline Company Limited (TPCL) signed an Investment Agreement today in a ceremony witnessed by petroleum ministers and senior government officials of Turkmenistan, Afghanistan, Pakistan and India, and senior Asian Development Bank (ADB) officials.
Аccording to a press release of the ADB, the agreement will pave the way for long-term gas sales that will allow Turkmenistan to diversify its gas export markets and support growth.
The Investment Agreement provides an initial budget of over $200 million to fund the next phase of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. This includes funding for detailed engineering and route surveys, environmental and social safeguard studies, and procurement and financing activities, to enable a final investment decision, after which construction can begin. Construction is estimated to take up to 3 years.
TPCL will build, own, and operate the TAPI pipeline, which once completed, will transport up to 33 billion cubic meters of natural gas annually from Turkmenistan for the next 30 years. The pipeline stretches about 1,600 kilometers from the Afghan/Turkmen border to the Pakistan/Indian border.
"TAPI exemplifies ADB's key role in promoting regional cooperation and integration over the past 20 years. It will unlock economic opportunities, transform infrastructure, diversify the energy market for Turkmenistan, and enhance energy security for the region," said Sean O'Sullivan, Director General of ADB's Central and West Asia Department.
Acting as TAPI secretariat since 2003 and as transaction advisor since 2013, ADB has been instrumental in the progress of the TAPI pipeline to date. In the latter role, ADB helped establish TPCL, select Turkmengaz as consortium leader, and finalize the Shareholders and Investment Agreements.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members - 48 from the region.