The four state gas companies of Turkmenistan, Afghanistan, Pakistan, and India have established a company that will build, own and operate the planned 1,800-km Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline.
In a statement ADB issued on Thursday, the transaction advisor for the TAPI gas pipeline, said that State concerns Turkmengas, Afghan Gas Enterprise, Inter State Gas Systems (Private) Limited, and GAIL (India) Limited will own equal shares of the company.
Klaus Gerhaeusser, Director General of ADB’s Central and West Asia Department, said that this is a key step towards development of the pipeline network.
November 2013, ADB was appointed the transaction advisor for the TAPI gas pipeline project. Establishment of the TAPI pipeline company is an integral part of the larger goal of identifying and selecting a commercial consortium leader to spearhead the construction and operation of the pipeline.
“When selected, the commercial consortium leader will take a substantial stake in the company,” the statement said.
The TAPI pipeline will export up to 33 billion cubic metres of natural gas annually from Turkmenistan to Afghanistan, Pakistan, and India over 30 years.
Turkmenistan has the world’s fourth-largest proven gas reserves, and the pipeline will allow the landlocked country to diversify its gas export markets to the southeast.