Work on TAPI pipeline to kick off in Pakistan this month

Work on the long-awaited Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline will kick off in Pakistan this month as Tapi Company, which has the mandate to run the pipeline, has awarded the project management consultant (PMC) contract to German firm ILF, Express Tribune reported.

The consultant is ready to conduct route survey, detailed engineering and feasibility study in the current month. 

"A team from Turkmenistan will reach Islamabad on February 14 to begin work on the route survey, engineering and feasibility study to implement the Tapi pipeline project," a senior government official said. The team will first start work in Pakistan and then it will proceed to Afghanistan.

"Pipeline construction and gas-field development has started in Turkmenistan and we appreciate efforts of Turkmenistan authorities to expedite the project," Inter State Gas Systems Managing Director Mobin Saulat said while talking to The Express Tribune.

He added that Pakistan had reiterated its firm commitment and continued to provide full support for the Tapi pipeline.

Efforts to achieve financial close were going on and the project would be commissioned as per schedule, he said.

Turkmenistan, Afghanistan, Pakistan and India have signed a $10-billion investment agreement for the Tapi pipeline in a bid to kick off activities, update feasibility study and finalise pipeline route in Afghanistan.

Leaders of the four countries performed the ground-breaking of the project, which would help ease energy deficiency in South Asia, in December 2015.

According to the agreement, Turkmenistan will invest around $25 billion to deliver 3.2 billion cubic feet of gas per day (bcfd) to energy-hungry Afghanistan, Pakistan and India.

Of the total, $15 billion will be invested in developing the gas field whereas $10 billion will be poured into laying the pipeline over 1,680 km connecting Afghanistan, Pakistan and India with Turkmenistan.

Officials said a consortium of Japanese companies was working on a fast-track basis to develop the gas field in Turkmenistan.

A gas sale and purchase agreement had already been inked in 2013 to set the pricing mechanism under which the gas price at Turkmenistan border would be around 20% cheaper than the price of Brent crude.

Pakistan and India will receive 1.325 bcfd of gas each while Afghanistan will get 500 mmcfd.