TAPI

Turkmenistan, Afghanistan,
Pakistan and India Pipeline

By: Roya Saqib, Year 2011.

Class: Political Economy of South Asia. MA in IR, JNU.
TAPI Turkmenistan, Afghanistan, Pakistan and India
Pipeline
Introduction
• South Asian countries’ Cooperation in energy area is crucial in
furthering the cooperation and bringing about peace in the
region among the concerned counties, since this area, due to
the serious need for the energy of the SAs leading countries
(India and Pakistan), has the potential to pave the way for a
compromise and a balanced bargain, it is hoped that a peace
could be achieved if the challenges are tackled and the trade is
started. This presentation is highlighting such a planned
cooperation under the TAPI pipeline project.
Focus points on TAPI
 Pipeline merit over LNG
 Background
 Technical Features
 The Significance―A win-win for all
 TAPI implementation challenges
 conclusion
Advantage of Pipeline over LNG trade
gas transport by pipeline is considered
economic in relation to gas transport as
LNG up to distance
pipeline option confers greater supply
security to the importer, since it is not
easy for the exporter to shift the pipeline
to some other country, which would offers
a better price.
Background TAP-TAPI
• Long time at stake (since 1990s)
• 2 Consortium BRIDAS and UNOCAL
• US support for UNOCAL, 1997 negotiation with Taliban
• In 2001 negotiation broke down , and
• Afghan new government negotiation started again
• 2003 ADB started the technical studies assistance
• India was proposed to participate- TAP to TAPI
• 2008 all participants signed
• Supposed to start supply of gas by 2015
• But pipeline construction has not started yet
 TAPI Technical Features
 Dauletabad gas field in Turkmenistan along the highway
through Herat, Helmand and Kandahar in Afghanistan, to
Quetta and Multan in Pakistan, and on to Fazilka in India.
 1,680 km pipeline
 1,420 millimeters (56 in) in diameter
 working pressure of 100 standard atmospheres.
 The initial capacity will be 27 billion cubic meters (bcm) of
natural gas per year. 2 bcm to Afghanistan and 12.5 bcm to
each Pakistan and India.
 Later the capacity will increase to 33 bcm. Less than 5 bcm
Afghanistan and 14 each for India and Pakistan
 Initially estimate of cost US $3.3 bn. Now increased to US
$7.6 billion
 The project is to be financed by the Asian Development
Bank
The Significance―A win-win for all
For Turkmenistan: According to a
Rich in natural gas Statistical Review 2009,
reserves Turkmenistan has the
world’s fourth largest
Far from world oceans
reserves of natural gas,
Wants access to 7.94 trillion cubic
market to export its gas meters (TCM),
TAPI-A Revenue source exceeded only by
and diversification of Russia, Iran and Qatar.
its export roots
Significance cont.…….
Afghanista For Afghanistan :
n is an TAPI could mean around
important five billion cubic meters of
bridge gas for internal needs
between  $300 million of transit
South and profits leading to certain
Central employment and source-
Asia. of-income opportunities
Significance cont.…….
For India
 to acquire additional
sources of energy supplies
 Strategic benefit of equating
china in getting a foothold
in Central Asia

For Pakistan TAPI means a

source for the demands of
its energy deficit.
For US and Russia

• Russia interested in • US want to connect South

TAPI, to central Asia to extend
• If it manages to its influence from South
become a part of the to Central Asia. (New
project it will renew Great Game)
Moscow’s strategic • It also wants to check
influence in the Russia and counter China
region • Also looks it as an
• and reduce the EU alternative to IPI for India,
source of available to weaken the Iran trade
gas field in gas.
Challenges
Political • The rivalry between the US to
instability in implement the western style
democracy and Russia to
Central Asia. support the autocrats to
the unstable maintain its writ has made the
situation in political situation in CA fragile.
• Pakistan and India conflict over
Afghanistan Kashmir is seen as
and the complex unresolvable and makes a
Pakistan- India filter for them to see the
interest which lies in
relationships cooperation.
Major challenge: Afghanistan Security
In 2008, the Afghan
government promised
to ensure the security
of TAPI pipeline within
two years. Despite of
efforts the Helmand,
Kandahar areas
around TAPI has
remained the heaviest
insurgency areas. Thus
the Companies are
unlikely to make
investments within a
war zone. Building it
under arm guard and
then defending it for
long would mean a
very high cost.
 Conclusion
• TAPI Potential is high in the development of
concerned countries (particularly of the energy
deficit leading countries of SA- India and Pakistan),
and in initiating an inter-regional trade and in
promotion of relative peace between India and
Pakistan in the region.
• the US interference and its opposition to IPI; leading
India to be deprived of IPI in support of US alliance,
urges it to try to get a bigger share of TAPI to its own
benefit instead of its giving up IPI deal, would mean
the persistence of conflict in agreement over TAPI
• Afghanistan Security challenges as a major route