Afghanistan to begin work on TAPI gas pipeline

Published September 11, 2024
The pipes are pictured during the inauguration ceremony of the TAPI pipeline project, in the Tagtabazar district of Mary province, near the zero point between Turkmenistan and Afghanistan, on September 11.  — AFP
The pipes are pictured during the inauguration ceremony of the TAPI pipeline project, in the Tagtabazar district of Mary province, near the zero point between Turkmenistan and Afghanistan, on September 11. — AFP

Afghanistan said on Wednesday work would begin on a $10 billion gas pipeline traversing South Asia as officials joined dignitaries in neighbouring Turkmenistan to celebrate its completion on that side of the border.

Progress on the TAPI pipeline — running through Turkmenistan, Afghanistan, Pakistan, and India — has been repeatedly delayed because of security issues in conflict-ravaged Afghanistan.

“From today the operations will start on Afghanistan’s soil,” Taliban government spokesman Zabihullah Mujahid said at the ceremony in comments broadcast by Afghan state television.

At the border ceremony in Islim Cheshma in Turkmenistan, officials on both sides, including Afghan Prime Minister Hassan Akhund, hailed the project.

“This project will benefit not only the economies of the countries participating but also the countries of the whole region,” Turkmen President Serdar Berdimuhamedow said in a video broadcast live at the ceremony.

In the Afghan border province of Herat, a public holiday was declared to mark the occasion, with posters celebrating the project plastered around the capital of the same name.

The pipeline will see around 33 billion cubic metres of natural gas each year extracted from the Galkynysh gas field in southeast Turkmenistan.

It will be pumped through an 1,800-kilometre pipeline traversing Afghanistan, including Herat and Kandahar in the south, before crossing into the Balochistan province in Pakistan and ending in Fazilka in Indian Punjab.

Pakistan and India will each purchase 42 per cent of the gas deliveries, and Afghanistan 16 percent, while Kabul will also benefit from lucrative transit fees of around $500 million per year, according to Afghan media.

Work on the Turkmen side began in 2015 and was initially scheduled to start in Afghanistan in 2018, but has been repeatedly delayed.

India’s commitment to the pipeline has also previously been questioned over its relationship with Pakistan and its already easy access to liquefied natural gas markets.

Jobs and cheap gas

The ceremony was an opportunity to simultaneously launch various bilateral projects, including a fibre-optic line to Herat, an electricity line, and the inauguration of a railway bridge.

In a country plagued by unemployment, TAPI “will provide jobs for 12,000 people in Afghanistan,” the government spokesman Mujahid told AFP.

Neither Afghan nor Turkmen officials have provided details on the financing or the expected date for TAPI to come online.

However, Swapnil Babele, an analyst with the research group Rystad Energy, expects further delays “as a lot of work remains to be done and the question of future financing is unclear”.

“We expect it to be operational only in the next decade,” he told AFP.

For the three recipient countries, the pipeline will have the advantage of “delivering gas cheaper than liquefied natural gas and ensuring consistent supply”.

It is the most significant development project for Taliban authorities since they seized power in 2021, ending their two-decade-long insurgency against the foreign-backed government.

The pipeline gives the government, which is not officially recognised by any nation, a strategic role in regional cooperation between Central Asia and South Asia, which is facing huge energy deficits.

Afghanistan, although still under economic and financial sanctions from the West, is currently trying to relaunch ambitious projects, particularly in energy, mines, and infrastructure.

At the end of July, Afghanistan and China officially relaunched a major copper extraction project in the world’s second-largest known deposit, near Kabul, which had been bogged down since 2008.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

A bloody year
Updated 07 Oct, 2024

A bloody year

Using the Oct 7 attacks as an excuse to wage endless aggression on Middle East, Israel has crossed all red lines.
Bleak cotton outlook
07 Oct, 2024

Bleak cotton outlook

THE extremely slow arrival of phutti at the ginning factories of Punjab and Sindh so far indicate a huge drop in the...
Killjoy neighbours
07 Oct, 2024

Killjoy neighbours

AT the worst of times in their bilateral relations, India and Pakistan have not shied away from carrying out direct...
Peak of success
06 Oct, 2024

Peak of success

IT started with the ascent of Nanga Parbat in 2017 and ended with the summit of Tibet’s Shishapangma on Thursday....
Indian visitor
06 Oct, 2024

Indian visitor

AMONGST the host of foreign dignitaries expected to fly into Islamabad for the SCO Council of Heads of Government...
Violence once again
Updated 06 Oct, 2024

Violence once again

The warring sides must rein in their worst impulses and prioritise the nation’s well-being over short-term gains.