In the second decade of October, the official delegations of Pakistan and Turkmenistan will hold negotiations at which it is planned to determine the start date for the construction of the Pakistan section of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline.

 

Earlier this year, the parties have already signed an Agreement with the host Government (Host Government Agreement (HGA), now it is necessary to discuss the details of the full version of this Agreement.

The document will authorize the TAPI Pipeline Company Limited joint stock company to implement and operate the Pakistan segment of the pipeline project for the next 25 years. In this regard, the Government of Pakistan will provide certain benefits and permits to TAPI Pipeline Company Limited, including the opening of its branch in Pakistan, investment protection, etc. The Government of Pakistan is also ready to facilitate the implementation of the project by providing land and permission to transfer foreign currency.

The total length of the TAPI gas pipeline with a capacity of 30 billion cubic meters of natural gas per year will be more than 1.8 thousand kilometers. The Pakistan section will be the longest – 826 kilometers. In Pakistan, the pipeline will be laid through the vicinity of the cities of Chaman, Multan, Quetta and Dera Ismail Khan.

The construction of the Turkmen section of the TAPI gas pipeline started in December 2015. February 23, 2018 the laying of the Afghan section of the pipeline took place.

 

The leader of the TAPI Pipeline Company Limited consortium for the construction and operation of the pipeline is “Turkmengas” State Concern. The consortium also includes the Afghan Gas Corporation, Pakistan's Inter State Gas Systems (Private) Limited and the Indian GAIL.

The project has been approved by Russia, the United States and several other countries. The intention to participate in the financing of TAPI was announced by ADB, EBRD, IDB, Saudi Development Fund, etc. In October 2016, the State Bank for Foreign Economic Affairs of Turkmenistan signed an agreement with the Islamic Development Bank to finance the construction of the Turkmen section of TAPI.