TAPI Gas Pipeline

Ground breaking of $7.6 billion-TAPI gas pipeline on Sunday in Turkmenistan

The ground-breaking ceremony was attended by Turkmenistan President
Gurbanguly, Afghan President Ashraf Ghani, Pakistan Prime Minister Nawaz Sharif and
Indian vice president Hamid Ansari
riginally the cost of the pipeline project was reportedly estimated at $7.6 billion, but a
more recent estimate was $10 billion. GAIL India may become a part of TAPI project
Turkmenistan's state company Turkmengaz will lead the consortium for building the
1,735-km -long pipeline carrying gas from the former the Soviet state to energy-hungry
India, Pakistan and Afghanistan.

Turkmen government is holding a ground breaking ceremony on December 13, 2015

The ground breaking ceremony of 1,735-km long gas pipeline from Turkmenistan
through Afghanistan and Pakistan to India

The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day
(mmscmd) gas for a 30-year period and is targeted to 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.

ADB funded a feasibility study of the project in 2004, which was conducted by a British
consulting firm PENSPEN. The feasibility study, proposed to lay a 56-inch diameter
1,680 KM pipeline with design capacity of 3.2 billion cubic feet of natural gas per annum
(Bcfd) from Turkmenistan through Afghanistan and Pakistan up to Pak-India border.
Proposed natural gas pipeline being developed by the Asian Development Bank
Gas Volume:
3.2 billion cubic feet of natural gas per day (Bcfd)
Gas Supplier:

Turkmenistan

Gas Buyers:

Afghanistan (500 MMcfd), Pakistan (1,325 MMcfd) and India 1,325 MMcfd)

Supply Source:

Gylkynish

Pipeline Dia:

56-Inch

Proposed Route: Supply Source: Heart Kandahar Chamman Zhob DG Khan Multan Fazilika (Pak-India Border)
with total Length of 1,680 KM
First Gas Flow:

2018 planned.

Status of Agreement
Intergovernmental
Agreement (IGA)

Signed by the Head of States of all the member countries on

11thDecember 2010.

Gas Pipeline framework

Agreement (GPFA)

Signed by respective petroleum ministers of four countries on

11thDecember, 2010.

GasSale and Purchase

Agreement (GSPA)

Turkmenistan-Pakistan and Turkmenistan-India bilateral

GSPAs were signed by the heads of respective commercial
entities on 23rd May 2012. Turkmenistan-Afghanistan signed
the bilateral GSPA on 9th July 2013.

Operations Agreement

Signed between all four TAPI countries on 9th July 2014.

Transaction Advisory
TAPI Parties and ADB signed TASA on 19 th November 2013 at
Services Agreement (TASA) Ashgabat-Turkmenistan.

Transit Fee Arrangement

Parties agreed to a transit fee figure with consensus. Currently,

the tripartite transit arrangement negotiations between
Afghanistan-Pakistan-India are continuing.

Shareholders Agreement

After resolution of all issues, Shareholder Agreement has been

initialed by the Parties during TAPI Steering Committee
meeting held on 24th October 2015 at Ashgabat, Turkmenistan.

Investment Agreement

Negotiations are under way for the finalization of Investment

Agreement.