Four countries ink deal for $10 billion TAPI gas pipeline project.

The four nations that are part of the $10-billion Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project have signed an initial investment agreement, a move that will clear the way for updating the feasibility study and finalising the pipeline route in Afghanistan.

The agreement was inked by representatives of the four nations and the Tapi Pipeline Project Company in Istanbul last month.

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They had already registered the company in November 2014 in which Afghanistan, Pakistan and India would have 5% shareholding each and the remaining 85% stake would be held by Turkmenistan.

The investment agreement pertains to the 5% shareholding of each of the three gas-importing countries, which means an initial investment of around $200 million.

“We have initialed an investment agreement in Istanbul and the final deal will be signed soon,” Interstate Gas Systems Managing Director Mobin Saulat told The Express Tribune.

Pakistan would contribute 5% of the financing for different activities of the project, he said.

Leaders of the four countries performed the groundbreaking of Tapi pipeline in December last year, a scheme aimed at easing the energy deficit in South Asia.

The Tapi pipeline, also dubbed the peace pipeline, is expected to bring peace and stability in the region in the wake of regional cooperation as Afghanistan, Pakistan and India will be depending on each other. It will also connect South Asia and Central Asia.

“We are currently working on three pipelines including a liquefied natural gas (LNG) pipeline from Gwadar, Tapi and the North-South LNG pipeline,” Saulat said, adding the Tapi project was expected to be completed by the end of 2019.

tribune.com.pk