Energy projects of Central Asia mulled at Energy Charter Forum

Oil&Gas Materials 30 May 2017 17:29 (UTC +04:00)

Ashgabat, Turkmenistan, May 30

By Huseyn Hasanov – Trend:

Gas pipeline projects of Central Asia were discussed as part of the Energy Charter Forum, which was opened in Ashgabat on May 30, said a source familiar with the event.

The forum is titled “Towards a Multilateral Framework Agreement on Transit of Energy Resources”. Special attention was paid to the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline among new projects in the sphere of energy infrastructure.

Executive Director of TAPI Pipeline Company Ltd Muhammetmyrat Amanov noted that Turkmenistan is able to provide “long-term supply” to the countries of South Asia that are experiencing energy deficit. Moreover, the Central Asia-China pipeline, which was commissioned in 2009 to mainly supply Turkmen gas, was also discussed.

As it was reported, as of May 20, 2017, 170.3 billion cubic meters of gas has been delivered from Turkmenistan to China since the beginning of the pipeline’s operation, via the Turkmenistan-Uzbekistan-Kazakhstan-China route.

At the current stage, the pipeline has three parallel branches. The parties plan to build the fourth branch on a new route: Turkmenistan-Uzbekistan-Tajikistan-Kyrgyzstan-China. Under an agreement between CNPC and Turkmengas, annual supplies to China will be brought up to 65 billion cubic meters of Turkmen gas in the future.

As for the South Asian direction, Turkmen gas can be delivered starting from 2020 via the TAPI pipeline. The possible costs of the TAPI project vary between $7 and $10 billion.

The construction of the TAPI gas pipeline’s 214-km long Turkmen section began in December 2015, and will be completed, according to the schedule, in late 2018. Meanwhile, exploration work is underway on the Afghan and Pakistani sections.

Being the leader of TAPI Pipeline Company Ltd, the Turkmengas State Concern that owns a controlling stake acts as the main financier and manager of the project. The consortium also includes the Afghan Gas Enterprise, Pakistan’s Inter State Gas Systems (Private) Limited and the India’s GAIL.

The annual capacity of the gas pipeline will reach 33 billion cubic meters. It is planned that the total length of the TAPI pipeline will be 1,814 kilometers. Some 214 kilometers will pass through the territory of Turkmenistan, 774 kilometers - Afghanistan, 826 kilometers - Pakistan. The TAPI pipeline will export gas from Turkmenistan’s giant Galkynysh field.

Delegations of the Energy Charter member states, as well as representatives of the United Nations Economic Commission for Europe, European Union, OSCE, Organization for Economic Cooperation, Organization of Islamic Cooperation, USAID, World Bank, Asian Development Bank, European Bank for Reconstruction and Development, as well as big oil and gas companies are attending the Ashgabat forum.

Secretary General of the Energy Charter Secretariat Urban Rusnak is heading this organization’s delegation at the forum.