With the establishment of a $200 million initial budget to fund the next phase of the development of the 1600-km Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, the shareholders of the TAPI Company Limited have paved the way for long-term natural gas supplies that will strengthen regional economies as well as regional energy security.
The $200 million will also include 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 three years.
“The financial support committed by the shareholders of TAPI under this investment agreement is a true testament of their intention to get this historic project off the ground and running,” said Yagshygeldi Kakayev, Deputy Chairman of the Cabinet of Ministers of Turkmenistan. “Turkmenistan’s vision is strongly aligned with that of its TAPI neighbors to make this project a reality and to deliver a truly regional project that will address energy demands and support economic prosperity and security in the region.”
TPCL will build, own, and operate the TAPI pipeline, which, once completed is expected to transport up to 33 billion cubic meters of natural gas annually from Turkmenistan to Afghanistan, Pakistan and India over 30 years.
The Asian Development Bank (ADB), acting as TAPI secretariat since 2003 and as transaction advisor since 2013, 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.