Pakistan has been urged to expedite work on its part of the pipeline to ensure energy security to fall in line with Turkmenistan’s target to close the project financially by November 2020.
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Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project will work as an energy corridor connecting Central and South Asian regions.
The project is estimated to diversify sources of energy supply in Pakistan significantly.
The central Asian partner has injected billions of dollars from its own resources to develop the gas field from where gas will be supplied and is also trying to generate funds from financial institutions like the Asian Development Bank (ADB). It is also working to generate funds on the credit supplier model.
Total volume of investment is estimated at around $25 billion that includes development of the gas field and building the pipeline from Turkmenistan to Afghanistan, Pakistan and India.
The cost of developing the gas field is estimated at $15 billion while pipeline laying will cost $10 billion. Turkmenistan will bear 85% of the total cost whereas 15% of the cost will be borne by all the other participating countries – Pakistan, Afghanistan and India.
“Turkmenistan is hoping to sign loan agreements with prospective financiers in October this year in order to generate funds to kick off construction work on first phase of the project,” a senior government official said.
Tapi project is aimed at bringing gas from the Galkynysh and adjacent gas fields in Turkmenistan to Afghanistan, Pakistan and India. A gas sale and purchase agreement (GSPA) between Inter State Gas Systems (ISGS) and Turkmengaz for the supply of 1.3 billion cubic feet of gas per day (bcfd) to Pakistan was signed in 2012, wherein the pricing was agreed with Turkmengaz.
