The work on the long-awaited 1,680 km Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, which will help ease energy deficiency in South Asia, will start in Pakistan tomorrow, a senior Pakistani official said today.
Leaders of Turkmenistan, Afghanistan, Pakistan and India performed the ground-breaking of the project in December 2015.
"Officials from Turkmenistan have reached along with a high-level delegation and an inaugural ceremony will be held on Friday to start work on route survey and detailed engineering in Pakistan," Inter State Gas Systems Managing Director Mobin Saulat was quoted as saying by The Express Tribune.
The daily reported that the route survey, detailed engineering and feasibility study, which will be conducted by a consultant are required to be undertaken before building the gas pipeline.
The project management consultant will first undertake the survey and study in Pakistan and then extend its scope to Afghanistan.
TAPI Company, established with the task of running the transnational gas pipeline, has awarded project management contract to German firm ILF.
"Building of the pipeline and development of gas field has begun in Turkmenistan and we appreciate its efforts to step up activities in an attempt to complete the project according to the schedule," Saulat said.
He said that efforts aimed at achieving financial close of the project were also continuing and the pipeline would be commissioned as per schedule.
Turkmenistan, Afghanistan, Pakistan and India have already signed a USD 10-billion investment agreement for the TAPI pipeline in a bid to kick off activities, update feasibility study and finalise pipeline route in war-torn Afghanistan.
With the title of peace pipeline, the project is expected to bring peace and stability in the region because of cooperation among regional countries and reliance on each other for meeting energy needs.
According to the agreement, Turkmenistan will invest around USD 25 billion to deliver 3.2 billion cubic feet of gas per day (bcfd) to energy-hungry Afghanistan, Pakistan and India.
Of the total, USD 15 billion will be invested in developing the gas field whereas USD 10 billion will be poured into laying the pipeline over 1,680 km connecting Afghanistan, Pakistan and India with Turkmenistan. The pipeline will connect South and Central Asia.
Turkmenistan will invest 85 per cent of the project's cost. An official said a consortium of Japanese companies had fast-tracked development of the gas field in Turkmenistan.
A gas sale and purchase agreement has already been signed in 2013 to establish the pricing mechanism under which gas price at Turkmenistan's border will be around 20 per cent cheaper than the price of Brent crude oil.
Pakistan and India will each receive 1.325 billion cubic feet of gas per day (bcfd) while Afghanistan will receive 500 mmcfd.
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