The Asian Development Bank (ADB) is likely to play a lead transactional role in the take-off of the proposed Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline under supervision of a new company, Petroleum Minister Veerappa Moily said Tuesday.
Addressing the Asia Gas Partnership here, organised by FICCI, Moily said the countries concerned are looking for a lead partner to ensure that TAPI is executed as targeted, and the pipeline is expected to become a reality in the next few years to transport natural gas from Turkmenistan to feed India's energy needs.
The $7.6-billion project will transport gas from Turkmenistan. The 1,680-km pipeline (144 km in Turkmenistan, 735 km in Afghanistan and 800 km in Pakistan) will have the capacity to transport 90 million cubic metres a day (mmcmd) of gas -- 38 mmcmd each for India and Pakistan and the remaining 14 mmcmd for Afghanistan.
The Indian government has earlier approved the formation of a special purpose vehicle (SPV) for the pipeline project and allowed the Gas Authority of India Ltd (GAIL) to join the SPV.
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The SPV is required to have an initial contribution of $20 million made up of $5 million from an identified entity from each of the four participating countries.
The 735-km section of the pipeline in Afghanistan will go through sensitive security areas, while the next 800 km through Pakistan will be a test of its resolve to normalise trade with India by allowing safe passage of the gas, say analysts.