TAPI project to strengthen Turkmenistan’s position on Asian gas market

The implementation of the Turkmenistan-Afghanistan-Pakistan-India (TAPI)
project will significantly strengthen Turkmenistan's position in the promising and rapidly growing gas market of the Asian region, the Institute of Strategic Planning and Economic Development at the Turkmen Ministry of Economy and Development said today.

The analysis is timed to the International Gas Congress in Avaza. Important agreements on TAPI were signed, namely for the purchase and sale of Turkmen gas were signed with the State Gas Systems of Pakistan and Indian GAIL Ltd. The Memorandum of Understanding was signed with transitable Afghanistan.

According to the article, at this stage, the project's operations are being rapidly conducted to construct TAPI.

According to the institute, production volume of gas must increase by more than 1.7 times in the medium term in Turkmenistan in 2012-2016. Two-thirds of the extracted gas is planned to be supplied to the foreign markets. This will significantly affect the growth of national exports.

The Asian Development Bank, acting as the Secretariat in the TAPI project previously wrote that after more than 20 years of complex negotiations, the 1800km gas pipeline which will connect one of the largest energy suppliers of Central Asia - Turkmenistan with the market in South Asia, has become one step closer to reality. This testifies to the unprecedented new ear in regional relations.

Daily supplies may reach up to 90 million cubic meters of natural gas. Turkmen gas will help cover the growing consumption in India and Pakistan. The needs may increase by half by 2030. The remaining part will facilitate the permanent deficit of energy resources in transitable Afghanistan.

The next step for TAPI's four countries is the issue of attracting commercial partners for constructing, financing and managing the pipeline. The project cost is estimated at $7.6 billion as of 2008. Bangladesh expressed its interest in the project.

The base document for promoting TAPI is the intergovernmental agreement signed by participating countries in Ashgabat in late 2010 to start implementing the project. The issue of security of this project passing through troubled Afghanistan is still on the agenda.


Besides the Dovletabat field, the largest field being developed in Turkmenistan which is Galkynysh, may be a resource base. Russia expresses great interest in this project. The U.S. administration also supports the implementation of this project.

Turkmenistan is already supplying gas to China, Iran and Russia.


/Trend/