According to its CEO (Chief Executive Officer), the TAPI gas pipeline project is in talks to obtain funding, and a final investment decision could be made by next year, as reported by Reuters. This development comes after the project had been languishing for decades due to delays caused by national security concerns and policy changes.
The TAPI project involves the construction of a natural gas pipeline that would run through the four TAPI (Turkmenistan–Afghanistan–Pakistan–India) countries. Initially conceived in the 1990s to monetise Turkmenistan's resource-rich Galkynysh Gas Field and help India meet its energy needs, it will run for 1813 km and transport 33 billion cubic meters (bcm) of natural gas a year.
The CEO of TAPI project has stated that the cost of the project has come down drastically to $7 billion, from the initially planned outlay of $10 billion. Also, the first phase of the project will require only $5 billion to construct. This is expected to evince stronger intent from the four countries to complete the project.
“We are planning to make a final investment decision (FID) in the first half of next year and then, stage by stage, finalise construction in Pakistan, Afghanistan and India,” the CEO said. The project has attracted funding support from multilateral funding institutions like ADB (Asian Development Bank) and the Islamic Development Bank.
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