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TAPI pipeline to move forward
ABU DHABI: The TAPI pipeline project to supply Turkmenistan’s gas to India and Pakistan via Afghanistan is moving closer to securing funding and a final investment decision could be made next year, its chief executive said on Tuesday.
The development, a key step forward for the project after decades of delays, could see the new pipeline link the energy-rich central Asian nation to some of the strongest growth markets in the region.
Muhammetmyrat Amanov, chief executive of the TAPI Pipeline company, told an industry conference in the UAE capital of Abu Dhabi that the cost of the pipeline had been reduced to $7 billion from an initial estimate of $10bn, and that its first stage could cost only $5bn.
“We are planning to make a final investment decision (FID) in the first half of next year and then, stage by stage, finalise construction in Pakistan, Afghanistan and India,” he said.
The first gas could be delivered to Afghanistan within around a year from the FID, and to Pakistan within two years, he said.
The project has been supported by import/export credit agencies in Germany and Italy, he said, which will fund exports of equipment for the project from those countries.
Other potential financiers for the deal include the Asian Development Bank and the Islamic Development Bank, he added.
Published in Dawn, November 14th, 2018
Comments (9) Closed
What about the pipeline from Iran to India? When Pakistan has closed surface transport between India and Afghanistan, why did they agree to this Tapi pipeline? Has realization dawned?
Is India still a part of the pipeline?
TAPI Pipeline is more than welcome initiative for prosperity of people of Sub-Continent. We the Sub-Continanians must learn from Russian, the Russian Gas is supplied through pipelines to whole of EU countries. It leaves geopolitical affect on EU, today the German Chancellor Merkel, and France President Macron have preferred a neutral position and are not willing to annoy Russia on any issue, the latest stunning statement of President Macron for eventual Europe own defence against Russia, China, and US, show the future course of EU. Similiarly once Pak & India share the stakes & benefits, their friendship bound to replace many odds, and the fruit of benefits will be felt in both countries. Recently Dr Shireen Mazari spoke of Ireland England peace accord about common borders, she maintain that same is applicable in Pak India scenerio. Even better accord could be possible once all the stakeholders sit across the table, and resolve the issues amicably.
Why are the costs being reduced for this particular project? Has inflation no effects over the same? Perhaps we could engage the project managers to take on all the incoming and old and new projects in our country. They may be of help to us in reducing the costs of our country's projects by the same percentage. Our government should engage their services or we could even lease out the country to them.
Futile efforts by Turkmenistan it is not feasible.. China won't allow it to India and Turkmenistan already have almost all its supply to China.
Couldn't agree more with you sir. It's about time to improve the relations between India and Pakistan.
Pak don't have anyone in govt who is interested in economic related things. Mr. Ashad is listening IMF officials like a student being informed about his own surroundings.
@point of view, If you remember recent history, division of water between India and Pakistan is the world's first and mostly successful bilateral water agreement. It is quoted even today as an an example of timely and appropriate manner of settling disputes where water crosses international boundaries. If that was possible 58 years back, why not for TAPI? It only requires real and honest thinking and deliberations for human development.
India has abundant liquefied gas from Iran. So it doesn't care for TAPI. TAPI is too late now and better it end up as TAP.