Turkmengaz to lead construction of TAPI gas pipeline

Turkmengaz will lead a consortium to build a 1,800-kilometer pipeline carrying gas from the former Soviet republic to energy-starved India, Pakistan and Afghanistan.

This decision was taken unanimously at the 22nd meeting of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) steering committee in Ashgabat. The state concern Turkmengaz, as the leader of the consortium of the pipeline company TAPI Limited, will coordinate the construction, financing, and operation of the TAPI gas pipeline. A Turkmengaz spokesman said the decision did not mean foreign companies would not be able to participate in a project worth about $ 10 billion (€ 9.2 billion).

“Turkmengaz will lead and coordinate the work of the consortium, which will also include foreign companies. Their proposals are currently being studied, ”the official explained, without disclosing companies that have already made proposals for the project. Earlier Western energy companies such as Chevron, ExxonMobil and Total were registered as potential leaders of the TAPI consortium.

Prime Minister Narendra Modi visited Central Asian countries in July, including Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan. Energy security was a key topic during this tour. The TAPI gas pipeline project was also discussed during Modi's visit to resource-rich Turkmenistan.

The Asian Development Bank is the lead partner in the pipeline project, which is expected to have a capacity of 90 million cubic meters of gas per day from Turkmenistan's Gunorta Yolotan-Osman field. Of this, 38 million cubic meters are planned to be supplied to India.

During the meeting of the Steering Committee in Ashgabat, it was decided that the four countries participating in the project, that is, Turkmenistan, Afghanistan, Pakistan, India, will own the project and take measures for its early implementation. Turkmenistan has proposed that the state-owned company Turkmengaz will lead the consortium for the TAPI project with the bulk of the investment. The parties approved the Turkmen proposal. It was decided that all parties would invest in the project, ensuring its techno-commercial viability.