Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Turkmenistan–Afghanistan–Pakistan–India Gas Pipeline (TAPI Pipeline) is a proposed pipeline that when built would deliver gas from Turkmenistan to Afghanistan, Pakistan and India.[1][2]

Location

The TAPI pipeline will begin in Turkmenistan's Galkynysh gas field and travel through Afghanistan to reach Pakistan and India. It will cross the cities of Herat and Kandahar in Afghanistan towards Pakistan, and cross the cities of Quetta and Multan in Pakistan towards its final destination, the Indian town of Fazilka, which is located on the Pakistan-India border in the state of Punjab.[1]

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Project details

  • Operator: Turkmengaz[1]
  • Owner: Turkmengaz [85%], Afghan Gas Enterprise [5%], Inter State Gas Systems (ISGS) [5%], and GAIL [5%][1]
  • Parent company: Turkmengaz [85%]; Afghan Gas Enterprise [5%]; Inter State Gas Systems (ISGS) [5%]; GAIL [5%]
  • Capacity: 33 bcm/y[1]
  • Length: 1,814 km[1]
  • Diameter:
  • Status: Construction[3][4]
    • Some sources cite the pipeline as already under construction, even as early as 2015, but as of 2023 agreements were still being signed by the four involved governments[1][4]
  • Start year:
  • Cost: US$7.7 billion[5]
  • Financing: US$5.2 billion in equity from Turkmengaz, Afghan Gas, Gail India and Inter State Gas System Pakistan; US$1.8 billion in debt from the Asian Development Bank, the Islamic Corporation for the Insurance of Investment and the Export Credit, and the Islamic Development Bank[6]
  • Associated infrastructure:

History

The TAPI Project was originally conceived in the 1990s with a view to monetize Turkmenistan’s gas reserves, from Galkynysh field, through gas exports to Afghanistan and Pakistan, and, potentially to India. The official proposal is dated 15 March 1995.[7] In March 2003, India was invited to join the Project.[8]

An intergovernmental agreement for the pipeline was signed in December 2010, but the project remained stalled due to technical and financial issues, as well as Afghanistan's instability. In 2012, the governments of Turkmenistan, Afghanistan, Pakistan and India formally agreed to build the transnational pipeline to supply approximately 30 billion cubic meters per year of Turkmen natural gas to India. Kandahar and Herat provinces will be the host provinces of the TAPI pipeline gas project as they would cover over 735 kilometers of Afghanistan - almost 44 percent of the pipeline. Afghanistan would earn a total of $400 million per year by way of a "transit" fee.[9]

In 2013, Turkmengaz, Afghan Gas Enterprise, Interstate Gas Service, and GAIL were nominated as shareholders by their respective countries to promote and invest in the pipeline project.[1]

In 2016, the four countries involved in the pipeline project signed an initial investment agreement to develop the TAPI. The Project will be owned by a special purpose consortium company, TPCL, which was established in November of 2014 by Turkmengaz (Turkmenistan), Afghan Gas Enterprise (Afghanistan), Interstate Gas Service (Pakistan) and GAIL (India) to develop the $7.5bn project. Turkmengaz is the majority shareholder in TPCL.[8] [10][1] Pakistan and Turkmenistan have signed the finalized version of the Host Government Agreement (HGA) for the Turkmenistan Afghanistan Pakistan India (TAPI) pipeline.[11] In September 2019 it was reported that Turkmenistan and Pakistan had agreed to reach financial closure on the project in early 2020.[12]

The pipeline was originally expected to become operational in 2021.[1] However, in November 2021 it was reported that construction of the pipeline was on hold due to political unrest in Afghanistan.[13]

In January 2023, the CEO of the TAPI gas pipeline project and Turkmenistan Ambassador to Kabul held a series of meetings in Kabul with the representatives of the Taliban government on the security concept for the first phase of the project in Afghanistan. They also discussed the commencement of the land acquisition process and development of gas distribution system in Herat province which will be the first phase of the TAPI project Afghanistan.[14]

In February 2023, Pakistan re-affirmed its willingness to move forward with the project, even without India's participation.[15]

In June 2023, Pakistan and Turkmenistan signed a joint implementation plan on 8 June in Islamabad to accelerate the pipeline's development. As of this time, the project was still considered proposed, and not yet under construction.[4]

In February 2024, Taliban announced their readiness to begin work on the Afghan portion of TAPI gas pipeline project.[16]

In September 2024, the Afghanistan portion of the pipeline entered construction.[3]

In October 2024, Kazakhstan expressed interest in joining the project.[17]

Background

The 1,814 kilometer, 56-inch diameter, transnational TAPI natural gas pipeline will deliver gas from the Galkynysh gas field in Turkmenistan to Afghanistan, Pakistan and India. The pipeline will begin with 27 billion cubic meters of gas per year and will increase to 33 billion cubic meters of gas per year after the first year of operation. The pipeline is currently scheduled to go into operation in 2021.[1]

There are conflicting reports about the status of the Turkmen section of the pipeline. In February 2018 leaders from the four countries celebrated the completion of the Turkmen section of the pipeline.[18] However in April 2019 the TAPI Pipeline company was still ordering a length of pipe that corresponded with the length of the Turkmen section of the pipeline, suggesting that it had yet to be built.[19] In July 2020 Turkmengaz solicited Saudi company Somo Al Mamlakah to invest in the Turkmen section of the pipeline.[20]

The Afghan section of the pipeline was reportedly under construction as of 2018.[11] Construction of the Pakistani section was scheduled to start in October 2019.[21] In January 2020 it was reported that construction of the Afghan section was delayed because of land acquisition problems.[22] In September 2020 top officials of Turkmenistan and Afghanistan signed documents committing the two countries to building the pipeline.[23]

Pakistan and India are expected to purchase 42 percent (approximately 14bcm) each while Afghanistan is expected to purchase 16 percent (approximately 5.11bcm) of the total volume of produced gas.[1] As per the terms of agreement, Afghanistan will charge $400 million as transit fee.[1]

Cost and financing

Originally estimated to be costing US$10 billion, in November 2018 it was announced that the project costs had been cut by 30% from to US$7 billion.[24]

The US$7 billion financing for the project is split approximately 75% equity – 25% debt. On equity, Turkmengaz is investing US$4.42 billion, with US$260 million each from Afghan Gas, Gail India and Inter State Gas System Pakistan. Debt financing is being provided via loans from the Asian Development Bank (US$500 million), the Islamic Corporation for the Insurance of Investment and the Export Credit (US$300 million) and the Islamic Development Bank (US$700 million committed, US$300 million under negotiation).[6] It has also been reported that the project has been supported by import/export credit agencies in Germany and Italy, which will fund exports of equipment for the project from those countries.[24]

In 2020, the cost was estimated at US$7.7 billion.[5] ADB’s assistance in Afghanistan, subsequently financial assistance of the TAPI pipeline, has been placed on hold consistent with its official statement dated 10 November 2021.[25]

Articles and resources

References

  1. 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 Turkmenistan–Afghanistan–Pakistan–India Pipeline, Hydrocarbons Technology, accessed April, 2018
  2. "Turkmenistan, Afghanistan push TAPI gas pipeline again but this is why India is being cautious". ThePrint. 2022-02-07. Retrieved 2022-06-27.
  3. 3.0 3.1 "Afghanistan begins work on TAPI pipeline". World Pipelines. 2024-09-13. Retrieved 2024-09-20.
  4. 4.0 4.1 4.2 "Pakistan and Turkmenistan sign agreement for TAPI gas pipeline project". World Pipelines. 2023-06-12. Retrieved 2023-07-10.
  5. 5.0 5.1 "https://www.adb.org/sites/default/files/project-documents/52167/52167-002-tar-en.pdf" (PDF). {{cite web}}: External link in |title= (help)CS1 maint: url-status (link)
  6. 6.0 6.1 TRANSACTION DATA: Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline (1814KM), IJGlobal, accessed May 5, 2021
  7. "https://en.wikipedia.org/wiki/Turkmenistan%E2%80%93Afghanistan%E2%80%93Pakistan%E2%80%93India_Pipeline". {{cite web}}: External link in |title= (help)CS1 maint: url-status (link)
  8. 8.0 8.1 Turkmenistan- Afghanistan – Pakistan-India TAPI Pipeline, Ministry of Mines and Petroleum - Islamic Republic of Afghanistan, accessed April, 2018
  9. TAPI Gas Pipeline Agreement Sealed, Tolo News, May 23, 2012
  10. Initial investment agreement for TAPI pipeline signed, The Economic Times, March 4, 2016
  11. 11.0 11.1 Pakistan, Turkmenistan sign pact for TAPI pipeline, Kallanish Energy, Mar. 15, 2019
  12. TAPI gas project: Turkmenistan, Pakistan agree to end financial closure in early 2020, Business Recorder, Sep. 4, 2019
  13. "TAPI project's implementation suspended until situation 'stabilizes' in Afghanistan Read more At: https://www.aninews.in/news/world/asia/tapi-projects-implementation-suspended-until-situation-stabilizes-in-afghanistan20211127181237/". Retrieved 2021-12-10. {{cite web}}: External link in |title= (help); line feed character in |title= at position 85 (help)CS1 maint: url-status (link)
  14. "Russia hints headway in TAPI gas pipeline project after Putin key aide visits Kabul". EnergyWorld.com. January 20, 2023. Retrieved August 29, 2023.{{cite web}}: CS1 maint: url-status (link)
  15. "Pakistan to Move Forward with TAPI Gas Pipeline Project Even Without India | Pipeline Technology Journal". www.pipeline-journal.net. Retrieved 2023-07-07.
  16. "Taliban Announces Readiness to Begin Work on Afghan Portion of TAPI Gas Pipeline Project | Pipeline Technology Journal". www.pipeline-journal.net. Retrieved 2024-07-05.
  17. "Kazakhstan Eyes TAPI Gas Pipeline Participation | Pipeline Technology Journal". www.pipeline-journal.net. Retrieved 2024-10-31.
  18. Turkmen section of trans-Afghanistan gas pipeline completed, Euronews, February 28, 2018
  19. Another Turkmen Pipe Mystery, Radio Free Europe, Apr. 4, 2019
  20. Kulpash Konyrova, Turkmenistan offers Saudi to invest in TAPI pipeline, New Europe, Jul. 21, 2020
  21. Pakistan-Turkmenistan to discuss TAPI gas pipeline groundbreaking in August, Business Recorder, Jul. 8, 2019
  22. TAPI pipeline project faces more delays in Afghanistan, Energy World, Jan. 28, 2020
  23. Afghanistan, Turkmenistan Sign Deal On TAPI Pipeline Which Includes India & Pakistan, Eurasian Times, Oct. 1, 2020
  24. 24.0 24.1 UPDATE 1-Tapi gas pipeline to move forward after decades of delays, Reuters, Nov. 13, 2018
  25. "ADB renews commitment to TAPI gas pipeline". pajhwok.com. Retrieved 2022-07-25.

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