TAPI project: Pakistan to get 13.8bn cubic meters gas

The TAPI gas pipeline's early completion would bring 13.8 billion cubic meters gas from Turkmenistan to Pakistan to cater for its growing energy demand and strengthen the country's energy security.
Source said Pakistan gave a briefing on energy sector progress report to the participants of two days CAREC meeting last week and maintained that availability of TAPI gas would bring economic benefits through job opportunities in Pakistan and upgrade associated infrastructure. They added that allocated gas volume for Pakistan and India is 14 billion cubic feet for each country and 5 billion cubic feet for Afghanistan annually over a commercial operation period of 30 years. The project is said to enhance energy security of the region.
Although the cost of the project is currently expected to be over $10 billion, the total project cost will be determined upon completion of the detailed design and the arrangements for the procurement of long-lead items, construction and other services.
Reference document presented to the meeting available with Business Recorder noted that on August 2015, Turkmengas was unanimously endorsed as consortium leader for TAPI Pipeline Company Ltd. Four months later, the shareholders agreement was signed in Ashgabad, Turkmenistan at a ground breaking ceremony to commemorate the beginning of the construction of the Turkmen portion of the planned TAPI pipeline.
An investment agreement, which provides for an initial budget for each party and cost estimates for pre-construction activities was endorsed on 7 December 2015 immediately after the conclusion of the 24th Steering Committee Meeting.
The meeting was further informed that acting as TAPI secretariat since 2003 and as transaction advisor since 2013, Asian Development Bank (ADB) has been involved in the progress of the TAPI pipeline and helped establish the TAPI Pipeline Company Limited (TPCL), due diligence activities, production of the technical and financial feasibility studies.
More recently in April 2016, the TAPI shareholders signed the investment agreement, which includes TPCL's initial Business Plan and Budget for the necessary project development activities, enabling the shareholders to take the project's final investment decision (FID).
The planned pre-FID activities include, the project's detailed design, environmental and social safeguards due diligence, preparatory procurement and debt raising activities.