Saudi Arabia-based Islamic Development Bank (IDB) has agreed to provide a $500 million loan to finance part of the $15 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline project. The IDB expressed interest in financing the project not just on Turkmenistan’s territory but also in Afghanistan and Pakistan. The TAPI Pipeline Company is also in talks with the Saudi Fund for Development and the Japanese government to invest in the 1,814km project that will transport gas from Turkmenistan’s Galkynysh fields to Fazilka in India through Pakistan. Turkmenistan’s national oil company Turkmengaz is the leader of the consortium of national oil companies of the four nations. It has 85 per cent equity in TAPI Pipeline Co (TPCL). The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for 30 years, with 38 mmscmd going to India and Pakistan each. The remaining gas is to feed Afghanistan. The construction of the long-delayed transnational pipeline was formally started on December 13, 2015. The project had been planned to become operational in 2018, but it is unlikely to see the light before 2022. The TAPI project has been on the drawing board for years as the four countries could not get an international firm to head a consortium which will lay and operate the pipeline. French giant Total SA had initially shown interest in leading the consortium. However, it backed off after Turkmenistan refused to accept its condition of a stake in the gas field that will feed the pipeline.
DéC