New Delhi: Unable to get an international firm to build their USD 7.6 billion project, the four nations involved in the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline Thursday decided to co-own the project with Turkmenistan's state company making majority investment.
Energy ministers of the TAPI nations met in Ashgabat today and agreed to "own the project and take steps for early implementation of the project", an official statement issued here said.
The work on it is yet to commence as the four nations have not succeeded in finding a reputed international firm that could lead the consortium to construct and operate the 1,800-km long pipeline.
During the 22nd Steering Committee meeting of TAPI project in Ashgabat, "Turkmenistan proposed that its state- owned company TurkmenGaz would lead the consortium for TAPI project with majority investment", the statement said.
Indian side at the talks was represented by Oil Minister Dharmendra Pradhan.
"All sides endorsed the Turkmen proposal. It was agreed that all sides would make investment in the project subject to techno-commercial viability, shareholders agreement and investment agreement," it said.
The compromise formula was agreed to after reluctance of foreign firms to participate in the project. French giant Total SA had initially envisaged interest in leading a consortium of national oil companies of the four nations in the TAPI project.
However, it backed off after Turkmenistan refused to accept its condition of a stake in the gas field that will feed the pipeline.
Since the four state-owned firms, including GAIL of India, neither have the financial muscle nor the experience of cross-country line, an international company that will build and also operate the line in hostile territories of Afghanistan and Pakistan, is needed.
The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for a 30-year period and will be operational in 2018. India and Pakistan would get 38 mmscmd each, while the remaining 14 mmscmd will be supplied to Afghanistan.
TAPI will carry gas from Turkmenistan's Galkynysh field, better known by its previous name South Yoiotan Osman that holds gas reserves of 16 trillion cubic feet.
From the field, the pipeline will run to Herat and Kandahar province of Afghanistan, before entering Pakistan. In Pakistan, it will reach Multan via Quetta before ending at Fazilka (Punjab) in India.
