The four countries that are part of the $10-billion Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project have inked an initial investment agreement in an apparent move to clear the way for updating the feasibility study and finalising the pipeline route in war-torn Afghanistan.
The accord was signed by representatives of the four states and the Tapi Pipeline Project Company in Turkey’s capital Istanbul last month.
This step will finalise the pipeline route in Afghanistan and make way for updating the feasibility study.
The company was registered in November 2014. Afghanistan, Pakistan and India would have 5 percent shareholding each and the remaining 85 percent stake would be held by Turkmenistan.
An initial investment of around $200 million is required that is based on the 5 percent shareholding of each of the three gas-importing countries.
Interstate Gas Systems Managing Director Mobin Saulat told local media that the investment agreement has been initiated.
Members of the Tapi pipeline have planned to solve the energy deficit in South Asia and promoted peace pipeline. It intended to instigate regional cooperation among Afghanistan, Pakistan and India by connecting South Asia to Central Asia.
“We are currently working on three pipelines including a liquefied natural gas (LNG) pipeline from Gwadar, Tapi and the North-South LNG pipeline,” Saulat said, adding the Tapi project was expected to be completed by the end of 2019.