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Groundbreaking ceremony for TAPI project next week

Groundbreaking ceremony for TAPI project next week

Dec 08, 2015 - 15:55

PESHAWAR (Pajhwok): Work on a long-delayed gas pipeline project, which is estimated to cost $10 billion, would get under way next week in Turkmenistan, a Pakistani official said on Wednesday. 

The Turkmenistan-Afghanistaninfo-icon-Pakistaninfo-icon-India (TAPI) gas pipeline was conceived 25 years ago, but its implementation has since been impeded by security concerns and political rifts.

Mobin Saulat, managing director of Interstate Gas Systems Private Ltd, the Pakistani company responsible for import of gas into the country via the project, said the groundbreaking ceremony would be held in Ashgabat.

Afghan President Ashraf Ghani as well as Pakistani and Indian leaders would participate the groundbreaking ceremony for the $10 billion project in the capital of Turkmenistan, the official told Dawn.

The Afghan Gas Enterprise, Interstate Gas Systems, Turkmengas and India’s Gail Ltd have equal shareholding in the TAPI Pipeline Company Limited (TPCL), according to the newspaper.

India will pay $200-250 million in transit fees to Pakistan while Islamabad will give the same amount to Kabulinfo-icon. Turkmenistan has reached an agreement with Japan to develop its gas fields.

Turkmenistan's government expects the gas link, with an annual capacity of 33 billion cubic metres, to be fully operational by the end of 2018. The project will help ease growing energy deficits in Asia.

PANinfo-icon Monitor/mud

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