GAIL surges as TAPI project gets underway

New Tapi Pipeline Company incorporated to build, own and operate the TAPI natural gas pipeline

GAIL has surged around 3% to Rs 490.40 on BSE after incorporating a new company, TAPI Pipeline Company in collaboration with state gas companies of Turkmenistan, Afghanistan and Pakistan to build, own and operate the 1,800 km TAPI (Turkmenistan-Afghanistan-

Pakistan-India) natural gas pipeline.

The company has been incorporated as a special purpose vehicle (SPV) in the Isle of Man, a British Crown dependency, located in the Irish Sea. This SPV would be responsible for finance, design, construction, operation and maintenance of the TAPI pipeline, the company said in its announcement.

The TAPI pipeline will export up to 33 billion cubic meters of natural gas a year 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. Turkmen gas in turn will provide a key new source of fuel for Afghanistan, Pakistan, and India, the company added.

The stock oppened at Rs 472.40 and has hit a high of Rs 491 till 13:15 hrs and around 2.4 million shares have changed hands on NSE and BSE combined.