ISLAMABAD, (APP): The shareholders of the
Turkmenistan-Afghanistan-Pakistan-India (TAPI) Pipeline
Company Limited (TPCL) signed an investment agreement in
Ashgabat (Turkmenistan) on Friday which would help address the
energy shortages in the country.
According to a statement issued by the Asian Development
Bank (ADB) here, the ceremony was witnessed by petroleum
ministers and senior government officials of Turkmenistan,
Afghanistan, Pakistan, India and senior Asian Development Bank
(ADB) officials.
The statement said the agreement would pave the
way for the delivery of long-term natural gas supplies to
Pakistan, helping it address energy shortages.
The Investment Agreement provides an initial budget of
over $200 million to fund the next phase of the TAPI natural
gas pipeline.
This includes funding 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.
The construction is estimated to take up to 3 years.
“TAPI will help bring in 13.8 bln cubic meters of
gas from Turkmenistan to meet Pakistan’s growing energy
demand,” Minister of State for Petroleum and Natural
Resources Jam Kamal Khan said.
“It will boost the country’s energy security, bring
economic benefits to our people through job opportunities,
and upgrade the associated infrastructure.”
The TPCL would build, own and operate the TAPI
pipeline, which once completed, would transport up to 33
billion cubic meters of natural gas annually from Turkmenistan
to the 3 other countries for the next 30 years.
The pipeline stretches about 1,600 kilometers from the
Afghan/Turkmen border to the Pakistan/Indian border.
“TAPI exemplifies ADB’s key role in promoting regional
cooperation and integration over the past 20 years.
It will unlock economic opportunities, transform
infrastructure, and diversify the energy market for
Turkmenistan and enhance energy security for the region,”
Director General of ADB’s Central and West Asia Department Sean
O’Sullivan said.
Acting as TAPI secretariat since 2003 and as transaction
advisor since 2013, ADB 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.