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TAPI Gas Pipeline Project is gift from Turkmenistan.

Turkmenistan is blessed with huge natural reservoirs and resources in shape of oil and gas and other precious metals and Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline is gift from Turkmenistan. Moreover, its export-oriented energy policy makes it one of the ideal countries in the Central Asian Countries and the world to do businesses. Its outstanding commercial diplomacy holds secret of its high ratios of exports.

TAPI and Strategic Importance of Energy

Energy is power. Energy is life. Energy is development. Energy simulates economic and business activities. Furthermore, a cheaper and green energy source i.e. gas creates more comparative advantage than other energy sources (oil, diesel, electricity etc.). Turkmenistan-Afghanistan-Pakistan-India (TAPI) the dream gas pipeline has a strategic importance, utility, productivity and durability to achieve greater regional peace and prosperity in the days to come. It would provide crucial inputs to achieve a stable and sustainable growth patterns for all the participatory countries.

TAPI: A Game and Fate Changer Project

It is indeed a game and fate changer mega project for the entire region. TAPI would boast the regional economies and open up unlimited avenues of prosperity. It would be win-win situation for all the four countries.

Turkmenistan's National Energy Policy

Right from its independence, Turkmenistan has been open and helpful to provide alternative source of energy mainly gas to China, Russia, Iran and many other countries. TAPI is the brain child of Turkmenistan which wished to further diversify its export-orientation in terms of oil and gas. It took more than twenty years to finalize but thanks God at last; it has now been finalized and formalized. Turkmen Ministry (April, 2016)

Moreover, according to Turkmen Ministry

Turkmenistan will make an investment of around $25 billion Total $15 billion will be poured into developing the gas field whereas $10 billion will be spent on laying a 17351 km long pipeline.

Latest Development about TAPI

According to Turkmen Ministry Turkmenistan is now constructed of linear part of the Turkmen section of the TAPI. Turkmennebitgazgurlyshyk" has already prepared more than 6,312 meters of pipes with a diameter of 1,420 mm for welding-up of pipe sections. After laying the linear part of the gas pipeline, automation and remote control system will be introduced in the Turkmen section. This system will make it possible to carry out the management of the entire gas pipeline network from a single control point: to increase and reduce gas flows depending on export requirements.

Turkmenistan's Energy Reserves

Turkmenistan has the world's fourth-largest gas reserves, started building its section of the TAPI gas pipeline project designed to further diversify its energy exports. Turkmen state energy firm Turkmengas is the main shareholder of TAPI Pipeline Company Limited, the joint venture set up to carry out the project. Other investors are Afghan Gas Enterprise, Pakistan's Inter State Gas Systems Ltd and GAIL (India) Ltd.

Finalization of Modalities

Now, all the participatory countries have agreed to proceed further and complete its mega project in 2019-2020. It has got tremendous momentum during last two years. Rigorous commercial diplomacy among all the countries has now made it reality. Its ground breaking ceremony was held last year in Turkmenistan. Turkmenistan, Afghanistan, Pakistan and India (TAPI) project agreed on to invest $200 million in studies and engineering for the pipeline.

Significant Achievement

It is a significant achievement as the project was lingering since 1990. Within past two and half years partner countries worked hard to initiate the project. All the member countries were eager to initiate the project as they faced serious energy deficits. Finally Turkmenistan government obliged all the countries and took the decision to become lead financer and now construction of TAPI had been started. TAPI's Ground Breaking Ceremony

On 13th December 2015, the Ground Breaking Ceremony (GBC) of TAPI was held at Mary, Turkmenistan. Earlier in November 2014, the Pipeline Consortium, TAPI Pipeline Company Limited (TPCL) was incorporated in Isle of Man, a British Crown dependency. The Share Holders Agreement of TPCL was also signed on 13th December 2015. The shareholding percentage in the TPCL would be Turkmenistan 85 percent, Pakistan 5 percent, India 5 percent and Afghanistan 5 percent.

TAPI: Cheapest Price

TAPI gas would be cheapest in terms of its price. Pakistan will get $250 million from India as transit fee and Afghanistan will also get the same amount from Pakistan. The agreement is between the states and the change of any government in any partner country will have no impact on the project.

Benefits of Pakistan

The Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline is based on mutual friendship, respect and need. It also comprises of economic prosperity, regional cooperation and above all smooth and easy availability of energy resources i.e. gas. Pakistan, expects to run out of its own reserves for few years, the pipeline will help sustain growth. It helps to provide a market to Turkmenistan for its substantial gas reserves.

Concluding Remarks

Turkmenistan-Afghanistan-Pakistan-India (TAPI) is a mega regional development project. It would enhance regional peace and prosperity. It would foster socio-economic prosperity. It would support dialogue and diplomacy instead of destruction in conflict resolutions.

It upholds shared-destiny of greater economic prosperity, sustained development and resolve against all odds to achieve the desired goals of regional peace and harmony. It is hoped that on completion it will boost the countries energy security, bring economic benefits, create new jobs and provide and upgrade associated infrastructure.
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Geographic Code:9PAKI
Date:May 31, 2016
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