State-owned energy firms from India, Pakistan, Afghanistan and Turkmenistan have jointly set up a company to build the 1,800 km long TAPI natural gas pipeline that will run across these nations, Asian Development Bank said today.
ADB is the transaction advisor for the TAPI gas pipeline project.
"State concern Turkmengas, Afghan Gas Enterprise, Inter State Gas Systems (Private) Limited, and GAIL (India) Limited own equal shares of the company," ABD said in a release.
"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," said Klaus Gerhaeusser, Director General of ADB's Central and West Asia Department.
"When selected, the commercial consortium leader will take a substantial stake in the company. The TAPI pipeline will export up to 33 billion cubic meters of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India over 30 years."
Turkmenistan has the world's fourth-largest proven gas reserves, and the pipeline will allow the landlocked country to diversify its gas export markets to the southeast.
Turkmen gas will provide a key new source of fuel for southern Afghanistan, Pakistan, and northern India, it said.
Owned by 67 members, of which 48 are from the region, ADB has given assistance of USD 21 billion, including co-financing of USD 6.6 billion in 2013.
