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Project Brief |
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Discussions on the Project have continued since 2002 with some ups and downs; However, some progress has been witnessed during the last year and a half. |
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The TAPI gas pipeline project aims to bring natural gas from the Dauletabad and adjacent gas fields in Turkmenistan to Afghanistan, Pakistan and India. |
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Asian Development Bank (ADB) is acting as the lead developer and coordinator for the project. ADB sponsored a feasibility study which was conducted by PENSPEN, UK in 2004. The design capacity of the pipeline is 3.2 billion 33 Billion cubic meters per annum (BCMA) |
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The proposed route of the 56-inch diameter pipeline is through Herat, Kandahar across Pakistan border near Chaman, Zhob, DG Khan, Multan, and onwards to Fazilka near Pak-India border. |
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The length of the pipeline upto Pakistan-India border is 1,680 KM. |
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The cost of the project was originally estimated at US$ 3.3 billion, which has since been revised to US $ 7.6 billion in 2008 in view of cost escalation in materials, equipment and construction. |
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| 2 |
Current Bilateral Status |
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vii |
The last meeting of the Steering Committee was held in Islamabad in April 2008. The next one was scheduled to be held in India in October 2008 however, the meeting had been delayed due to various factors. |
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viii |
A Pakistan delegation led by Dr. Asim Hussain, Advisor to the Prime Minister on Petroleum & Natural Resources visited Turkmenistan on 23-25 April 2009. During the visit the Advisor called on Mr. Tajberdi Taqiyev, Vice Premier for Oil & Gas on 25 April, 2009. The Advisor gave Pakistan government’s assurance on pursuing this important project and to work with Turkmenistan and other member states to remove all hurdles in the project. |
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| 3 |
Off-take Volumes |
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ix |
The TAPI parties have agreed in-principle to share the gas volumes (in MMCFD) as under: |
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Country
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Year 1
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Year 2
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Year 3 & onwards
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Afghanistan
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175
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175
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500
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Pakistan
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960
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1,225
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1,325
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India
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960
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1,225
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1,325
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Total
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2,095
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2,625
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3,150
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| 4 |
Gas Pipeline Framework Agreement (GPFA) |
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Originally, a GPFA was signed by the heads of state of three countries (Turkmenistan, Afghanistan and Pakistan) in December 2002. |
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xi |
However, to formalize Indian participation in the project, a revised GPFA has been initialed during 10th SC meeting held in April 2008 by the respective Ministers of the concerned parties. Turkmen Party’s internal approval of the GPFA is awaited. |
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| 5 |
Heads of Agreement (HOA) |
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xii |
The Heads of Agreement is a framework document which outlines the key principles of the Gas Sales and Purchase Agreement (GSPA). |
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xiii |
The TWG in its 3rd meeting, held in May 2008, successfully completed negotiations on the HOA, and it was initialed and frozen for submission to the relevant authorities for consideration and signing. Turkmen Party’s internal approval of the HOA is awaited. |
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| 6 |
Pipeline Consortium |
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xiv |
In the initialed GPFA, Parties have agreed to the formation of a pipeline consortium with equal shareholding of participating countries lead by an oil & gas major to undertake the financing, construction and operation of the pipeline. |
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| 7 |
Terms of Reference for the Transaction Advisor |
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xv |
Parties also agreed to engage services of a Transaction Advisor to updating the Feasibility Study, prospecting the lead investor and project developer. The assignment is expected to be completed in 12 to 18 months. |
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| 8 |
Negotiations on Gas Pricing & GSPA |
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xvi |
Considerable progress has been made in negotiations on gas pricing and Gas Sale and Purchase Agreement (GSPA). The parties have achieved consensus on a number of issues of GSPA, and it is planned that all remaining issues of model GSPA will be resolved in next round of negotiations. |
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TAPI Gas Pipeline RouteMap
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