A multinational gas pipeline project connecting Turkmenistan and South Asia secured a $200 million investment fund from its shareholders. The fund will be allocated to carry out preliminary studies to support the project.
The Turkmenistan-Afghanistan-Pakistan-India Pipeline (TAPI) project will connect the four countries, allowing to transport natural gas, mainly from Turkmenistan. On Thursday, the shareholders of the TAPI Pipeline Company Limited (TPCL) signed an investment agreement to provide $200 million to fund the next phase of the project.
Turkmenistan's Deputy Prime Minister, Yagshygeldy Kakayev, explained the allocation of the new funds. "We will use funds to carry out various studies, preliminary engineering, environmental design and various research of the route," Mr. Kakayev stated. Furthermore, he elaborated that the studies would provide a comprehensive estimate of the project's total cost.
Mr. Kakayev also acknowledged the importance of the signing of the investment, as it "opens the way for the consortium for further work," as quoted by ABC News. Other than determining costs, the team will also conduct studies to determine the detailed pipeline route and other environmental and social investigations.
The project's shareholders consist of energy firms from the four countries involved. According to Reuters, Turkmen state firm Turkmengas is the main shareholder of the joint venture that carries out the project. Other investors are Afghan Gas Enterprise, Pakistan's Inter State Gas Systems Ltd and GAIL (India) Ltd.
Once completed, the TAPI pipeline will have the capacity to transport 33 billion cubic metres (bcm) of gas annually for the next 30 years. The pipeline will tranship natural gas from Turkmenistan, the world's fourth-largest gas reserves, 1,600 kilometers along to the Pakistan/Indian border.
The pipeline project is being developed by the Asian Development Bank (ADB). The bank considers the TAPI project as an impressive regional cooperation and integration put together by ADB. The bank's Central and West Asia Department Director General Sean O'Sullivan stated the project's importance, as quoted by Trend News Agency. "It will unlock economic opportunities, transform infrastructure, diversify the energy market for Turkmenistan, and enhance energy security for the region," he said.
The natural gas pipeline project that will connect Turkmenistan to India through Afghanistan and Pakistan will now begin studies to determine the detailed engineering, budgeting, and route, as well as environmental and social investigations, after securing an investment of $200 million from its shareholders. The project's shareholders consist of energy companies from the four countries. They expect the project to be completed by 2019.
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