US-based consortium head likely for Turkmen-India gas pipeline
The $9-billion Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project is likely to see an America-based consortium leader. "Considering the terrorism-torn terrain of the project, we are looking for a US-based company with experience in building and operating the cross-country pipeline. Moreover, in a meeting held last month, the partners were keen to register Tapi Ltd in a place like New Jersey," said an official source.
Despite several roadshows in Singapore, New York and London, global majors were not keen to participate as a consortium leader, due to the Turkmen government's decision not to give participating stakes for the companies in hydrocarbon fields. Last February, the Indian government had given its nod to creation of Special Purpose Vehicle and for the participation of state-run GAIL (India) Ltd in the project. GAIL would invest $5 million (Rs 30 crore). The project is expected to be operational by 2017-18. The Asian Development Bank is transaction advisor.
"The consortium leader would build and operate the project, apart from arranging the funds and ensuring the delivery of gas, along with its security issues," the official added. GAIL has already struck an agreement with TurkmenGaz for importing 38 mscmd (million standard cubic metres a day) of natural gas through the pipeline for a 30-year period.
Meanwhile, there are disagreements between the Afghanistan and Pakistan governments over branches of the pipeline. According to reports, while Afghanistan wants a connection towards Peshawar, the preference of Pakistan is towards Lahore.
By the initial agreement, of the 90 mscmd to be handled by the pipeline, India and Pakistan would get 38 mscmd each while Afghanistan would receive 14 mscmd. "Security is a big challenge. Once this is addressed, Tapi is only a matter of time. The pipeline will open the floodgates of Commonwealth of Independent States' gas to our country," said a senior research scholar from The India-Central Asia Foundation, New Delhi.
M Veerappa Moily, minister for petroleum and natural gas, had during Petrotech 2014 said once the consortium was chosen, the pipeline would be built by 2017-18. "By August 2020, India will have Tapi gas," he'd said.
US-based consortium head likely for Turkmen-India gas pipeline
"Work on TAPI project to be completed in 3 yrs"
KABUL: The Ministry of Mines and Petroleum says work on technical issues of Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project has been kicked off and would be completed in a year.
"The TAPI pipeline project will be completed in coming three years if the region's situation would be in favor of the project and as well as Turkmenistan and the winner company sign the contract as soon as possible," said Jalil Jamrani, the head of department of petroleum in the Mines and Petroleum Ministry.
He said the project would cost around $11 billion which would be paid y Afghanistan, Turkmenistan, India and Pakistan.
Jalil told this to Azadi Radio on Saturday.
He said that technical studies of the project would be completed in a year and these all depends on situation in the region and behavior of Turkmenistan with the winner company, and this is so important for the project.
The plan of TAPI pipeline project was drafted in 2002 between Afghanistan, India, Pakistan and Turkmenistan and it was decided on that time that the project should be completed until 2017.
According to the project, gas pipeline would be transferred from Turkmenistan to India and Pakistan through Afghanistan.
The pipeline would pass through Herat, Farah, Nimroz and Helmand provinces of Afghanistan and would be connected to Pakistan through Speen Boldak port.
At least 500 million cubic meters of gas would be purchased from Turkmenistan in first 10 years after completion of the project, and this amount would be doubled after the first 10 years.
A number of analysts term the project as important for Afghanistan, and say India and Pakistan would pay $500 million annually for Afghanistan.
The Ministry of Foreign Affairs of Afghanistan says they were struggling through diplomatic channels to complete the project as soon as possible.
"The project was introduced in five phases and the last phase of the project is in 2017. Three phases of the TAPI pipeline project have been completed yet. I am optimistic for the project because we have discussed the project with the three countries through diplomatic channels," Azadi Radio quoted Wahidullah Waisi, the director of Economic Cooperation Directorate of the Ministry of Foreign Affairs, as saying.
Recently a number of sources reportedly said that Iran was trying to disrupt the TAPI pipeline project in a bid to sell its gas to India and Pakistan.
Despite that the Ministry of Commerce of Afghanistan confirmed a number of such reports but the Ministry of Mines and Petroleum says there was no barrier for the project.
AFGHANISTAN TIMES
