No international firm wants to take up TAPI gas project

The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project has hit a major roadblock with no international pipeline company willing to participate in the project unless they get a share in Turkmenistan’s rich gas fields

Written by ENS Economic Bureau | New Delhi | Published: October 17, 2012 1:38 am

The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project has hit a major roadblock with no international pipeline company willing to participate in the project unless they get a share in Turkmenistan’s rich gas fields.

The four nations recently held roadshows in New York,London and Singapore to attract firms that can lay and operate the 1,680-km cross-country project,but no international pipeline operating company turned up.

TAPI is the first transnational line where the Turkmenistan has already signed Gas Sale and Purchase Agreements in May this year. The four nations are inviting firms to become a consortium leader,who will be responsible for the building of the pipeline. “If the consortium is put in place by 2014,production of gas can start in 2017 or 2018,” an official said. The US is backing the pipeline as an alternative to the India-Pakistan-Iran pipeline that has been stalled for quite some time now.

The TAPI pipeline will have a capacity to carry 90 million standard cubic metres (mscmd) of gas a day for a 30-year period and is likely to become operational by 2018. India and Pakistan would get 38 mscmd each while the remaining 14 mscmd will be supplied to Afghanistan. FE

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