Construction of $8-billion natural gas TAPI pipeline launched

The project is expected to transport 33 billion cubic metres of natural gas a year along an 1,800-kilometre route

TAPI leaders
Afghanistan's president and Pakistan's prime minister launched a 1,814 kilometer (1,130 mile) gas pipeline on Friday that will feed Turkmenistan gas to Afghanistan, as well as Pakistan and eventually to India (Photo: AP/PTI)
Reuters SERHETABAT, Turkmenistan
Last Updated : Feb 23 2018 | 8:47 PM IST

Regional leaders launched construction work on the Afghan section of an $8 billion natural gas pipeline that will link the energy-rich Central Asian nation of Turkmenistan through Afghanistan to Pakistan and India.

Ex-Soviet Turkmenistan holds the world's fourth-largest natural gas reserves but has been heavily dependent on gas exports to China after Russia cut back gas imports in the past few years.

The project is expected to transport 33 billion cubic metres (bcm) of natural gas a year along an 1,800 kilometre (1,125 miles) route from Galkynysh, the world's second-biggest gas field, to Fazilka near the border with Pakistan in northern India.

"South Asia is being connected with Central Asia through Afghanistan after more than a century of division," Afghan President Ashraf Ghani said.

He was speaking at a ceremony attended by Turkmen President Kurbanguly Berdymukhamedov, Pakistani Prime Minister Shahid Khaqan Abbasi and India's Minister of State for External Affairs M.J. Akbar.

While the pipeline will allow Turkmenistan to find new consumers in Asia and cut its dependence on Beijing, which buys about 35 billion cubic metres of gas annually. It is also being seen as a central plank in ambitious regional development goals.

"TAPI will lead from a gas pipeline into an energy and communication corridor," Abbasi said, adding that as well as providing energy, the pipeline would underpin development of road, rail and communications networks.

The TAPI project, supported by the United States and the Asian Development Bank, has been touted by Turkmenistan since the 1990s. But the start of work was delayed because of the problem of crossing Afghanistan.

The pipeline will run for hundreds of kilometres (miles) through areas of southern Afghanistan largely controlled by Taliban insurgents fighting the Western-backed government in Kabul but the movement has signalled that it will not hinder the project.

The Taliban issued a statement on Friday, pledging its cooperation with TAPI, which it said would be an important element in building up Afghanistan's economic infrastructure.

"There will be no delay in this important national project," it said in a statement, which blamed the government in Kabul for delays in starting construction.

Ghani, striving to build up Afghanistan's war-shattered economy, has pushed the development of regional transport and energy networks to underpin long-term development and turn Afghanistan into a regional hub instead of a source of instability.

Afghanistan, which suffers from chronic energy shortages, is expected to take 5 billion cubic metres of gas itself, with the rest divided equally between Pakistan and India. In addition, Kabul will earn hundreds of millions of dollars in transit fees.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Feb 23 2018 | 8:41 PM IST

Next Story