Ashgabat, Turkmenistan, Nov.14
By Huseyn Hasanov- Trend:
Gas companies of four countries have established a company that will be engaged in construction and subsequently, operation of Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, the Asian Development Bank (ADB), which is the transaction advisor for the TAPI project said.
The company was established by Turkmengaz State Concern, Afghan Gas Corporation, Pakistan's Inter State Gas Systems (Private) Limited and India's GAIL (India) Limited.
ADB said that the abovementioned companies will have equal shares in the capital of the new company.
"The creation of the TAPI pipeline company is a key milestone in the development of the gas pipeline project and a tangible result of the transformational cooperation between the parties involved," Director General of Central and West Asia Department of ADB Klaus Gerhaeusser said.
He expressed hope that the creation of this company will allow to strengthen energy security, expand business opportunities and achieve more peace and stability in the region.
Turkmen President Gurbanguly Berdimuhamedov said at the meeting of the Council of Elder in October that it is planned to start the construction of TAPI in 2015.
"The project for construction of the TAPI gas pipeline aims to ensure the economic development of the participating states and strengthening of the political stability in the region," he said.
Pakistan's Express Tribune newspaper wrote that Malaysian Petronas and French Total uphold leadership in the consortium.
The basic document for the promotion of TAPI is Ashgabat interstate agreement signed between the participating states in 2010 on starting the practical implementation of this project.
The design capacity of the TAPI will be up to 33 billion cubic meters of gas per year, while the expected lifetime is 30 years.
Sale and purchase agreements were signed with Indian GAIL Ltd and State Gas Systems of Pakistan in May 2012. The same agreement with the Afghan Gas Corporation was signed in July 2013. A Transaction Advisory Services Agreement with ADB was signed in November 2013.
The total length of TAPI will reach 1,735 kilometers. Some 200 kilometers of the pipeline will run through Turkmenistan, 735 kilometers - through Afghanistan, 800 kilometers - through Pakistan to the settlement of Fazilka, located on the border with India.
Turkmenistan's largest field Galkynysh can serve as a raw material source for the pipeline. The large scale work on the development of this field is underway in Turkmenistan.
Edited by CN