Azernews.Az

By Aynur Jafarova

The state gas companies of Turkmenistan, Afghanistan, Pakistan, and India have established a company that will be engaged in construction, owning and operation of the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India gas pipeline, ADB said on November 13.

“Establishment of the TAPI pipeline company is a key milestone in the development of the pipeline. It is a tangible sign of transformational cooperation among the parties that presages the enhanced energy security, business prospects, and overall peace and stability in the region promised by the pipeline,” Klaus Gerhaeusser, Director General of ADB’s Central and West Asia Department said.

Turkmenistan’s Turkmengas State Concern, Afghan Gas Enterprise, Inter State Gas Systems (Private) Limited, and GAIL (India) Limited own equal shares of the company.

The TAPI project with the proposed capacity of 33 billion cubic meters of natural gas per year will 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.

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.

The project is an opportunity to contribute to the stability of Afghanistan, and its implementation could contribute to the rehabilitation process in the post-war country. It will also create job opportunities and provide Afghanistan with guaranteed income from the transit.

ADB was appointed 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. When selected, the commercial consortium leader will take a substantial stake in the company.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region. In 2013, ADB assistance totaled $21 billion, including cofinancing of $6.6 billion.