Azernews.Az

By Aynur Karimova

The Steering Committee of the Turkmenistan-Afghanistan-Pakistan-India gas pipeline has unanimously endorsed Turkmenistan's Turkmengas State Concern as the consortium leader of TAPI Pipeline Company Ltd to spearhead efforts to build, finance, own and operate the planned 1,600-kilometer natural gas pipeline.

The endorsement was given during the Steering Committee’s 22nd meeting attended by Petroleum Ministers of Turkmenistan, Afghanistan, Pakistan and India, and senior officials of the Asian Development Bank in Ashgabat on August 6, the ADB reported.

Addressing the meeting Baymyrat Hojamuhammedov, Turkmenistan's Deputy Prime Minister said the endorsement of Turkmengaz as Consortium Leader is a critical milestone in achieving the successful development of the TAPI pipeline project.

"It is a glowing endorsement of the continued cooperation among the TAPI countries, with the able assistance of Asian Development Bank, as our Transaction Advisor. When operational, the pipeline will deliver enhanced energy security, business prospects and overall economic stability in the region,” he said.

In his remarks, Sean O’Sullivan, Director General of ADB’s Central and West Asia Department, noted that "much has been achieved already, and ADB looks forward to helping the TAPI pipeline progress further toward first gas.”

The construction of the TAPI project, with a proposed capacity of 33 billion cubic meters of natural gas per year, will last about three years.

The pipeline is projected to extend from Galkynysh field in Turkmenistan through the Afghan cities of Herat and Kandahar to its final point at a settlement on the Pakistani-Indian border.

The ADB was appointed as the transaction advisor for the TAPI gas pipeline project in November 2013. In that role, ADB advised on the establishment of the TAPI pipeline company as an integral part of the larger goal of identifying and selecting a commercial consortium leader to spearhead the construction and operation of the pipeline.

The feasibility study of the project was developed in 2008, and it estimated total cost of the pipeline's construction at $7.6 billion. But as of now, the figure is projected to exceed $10 billion.

Experts believe that TAPI is not only a regional project envisaging the transportation of Turkmen gas, but also a global one.

The implementation of the project will strengthen Turkmenistan's independence, and its gas supplies to world markets will increase significantly.

TAPI is an opportunity to contribute to the stability of Afghanistan that could contribute to the rehabilitation process in the post-war country.

It will also create more job opportunities and provide Afghanistan with a guaranteed income from the transit.

--

Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

Follow us on Twitter @AzerNewsAz