TAPI $7.6 Billion Gas Pipeline Moves Toward Construction Phase

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--After some initial bickering, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline project recently has seen a fresh wave of cooperation among the partner countries, and all matters concerning the pipeline will be finalized at a meeting between the partners and the Asian Development Bank (ADB) at the Turkmenistan capital of Ashgabat on May 25, 2012. The project is being funded by the ADB.

The $7.6 billion TAPI pipeline will stretch 1,735 kilometers and run from Daulatabad through Heart and Kandahar provinces, then on through Pakistan, and terminate in India's Punjab.

It is reported that Afghanistan could earn $400 million in transit fees annually. In January 2012, Pakistan and India were reported to be in agreement on the idea of a uniform transit fee for the pipeline.

The construction of the pipeline is expected to start in 2014, and it would begin transporting gas from Turkmenistan to the other three countries in 2016. The pipeline will carry 34 billion cubic meters of gas annually for the 30 years after 2016. Afghanistan will have the right to use 600 million cubic meters during an initial period, which will increase to 5 billion cubic meters at a later stage.

Turkmenistan has agreed to supply 90 million standard cubic meters per day to the three consumer countries. India and Pakistan will receive about 38 million standard cubic meters per day each, with the balance going to Afghanistan. Pakistan may receive about 20% more gas when the project becomes operational.

Afghan mines ministry spokesman Mohammad Jawad Omar said that the project was a huge economic plan and that every step toward making it operational was a good omen for the countries involved.

For related information, see January 30, 2012, article - TAPI Gas Pipeline Advances with Agreements between Turkmenistan-Afghanistan and Pakistan-India.

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