Investment Agreement signed for TAPI pipeline | Pakistan Today

Investment Agreement signed for TAPI pipeline

The Turkmenistan, Afghanistan, Pakistan and India, the shareholders of TAPI Pipeline Company Limited (TPCL) have signed an Investment Agreement for the construction of the four-nation gas pipeline project.

The agreement was signed in Ashgabat, Turkmenistan on Thursday. The ceremony was witnessed by petroleum ministers and senior government officials of the shareholding states and officials of the Asian Development Bank (ADB).

The Investment Agreement provides an initial budget of over $200 million to fund the next phase of the development of the TAPI gas pipeline. This includes 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.

The construction is estimated to take up to 3 years. The pipeline stretches about 1,600 km from the Afghan/Turkmen border to the Pakistan/India border. The completion of the project will pave the way for long-term natural gas supplies that will give a major boost to the signatory countries’ economies and energy security.

ADB helped establish TPCL, select Turkmengaz as consortium leader, and finalise the Shareholders and Investment Agreements. 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.

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