The TAPI Agreement: A Comprehensive Guide
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project is a promising initiative that has the potential to change the energy landscape of the region. The pipeline is expected to supply natural gas from Turkmenistan`s Galkynysh gas field to Afghanistan, Pakistan, and India. The project has been under discussion for over two decades, and finally, in 2015, an agreement was signed between the four countries to develop the pipeline.
The TAPI agreement lays out the framework for the construction, operation, and maintenance of the pipeline. The agreement covers various aspects of the project, including the financing, technical specifications, and regulatory framework. Let`s take a closer look at some of the key provisions of the TAPI agreement.
Technical Specifications
The TAPI pipeline will be a 1,814-kilometer long pipeline, with an initial capacity of 33 billion cubic meters of gas per year. The pipeline will have a diameter of 56 inches and will run from the Galkynysh gas field in Turkmenistan to Fazilka in India. The pipeline will have compressor stations located in various locations along the way to ensure an uninterrupted supply of gas.
Financing
The TAPI project is estimated to cost around $10 billion. The financing for the project will be provided by a consortium of companies, including the Asian Development Bank (ADB), Japan`s government-backed Japan Bank for International Cooperation (JBIC), and the Islamic Development Bank (IDB). The ADB will provide a loan of $1 billion, while JBIC will provide a loan of $2 billion. The remaining amount will be raised through equity participation by the four countries and the private sector.
Regulatory Framework
The TAPI agreement provides for the establishment of a TAPI Pipeline Company, which will oversee the construction, operation, and maintenance of the pipeline. The company will be incorporated in Turkmenistan and will have a board of directors consisting of representatives from the four countries. The company will be responsible for ensuring compliance with safety and environmental regulations and for negotiating transportation agreements with gas buyers.
Conclusion
The TAPI pipeline project is a promising initiative that has the potential to provide a reliable source of natural gas to the energy-starved countries of Afghanistan, Pakistan, and India. The TAPI agreement lays out the framework for the successful development and operation of the pipeline. With the support of the international community and the private sector, the TAPI project has the potential to bring about significant economic development and energy security in the region.