USD 200 million for Afghanistan in TAPI Project

Kabul: Afghanistan has been looking forward $ 200 million in the initial stage for updating the feasibility study and finalizing the pipeline (Turkmenistan-Afghanistan-Pakistan-India Pipeline) route in Afghanistan. The four nations that are part of the $ 10 billion gas pipeline project have signed an initial investment agreement of $ 200 million of Afghanistan with TAPI Pipeline Project Company in Istanbul last month.

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 four nations have already inked the project commencement in December 2015. Many security experts suggest that this deal will bring prosperity, peace and integration to the region and this is a source to integrate South and Central Asia.

At the present rate of crude oil, the TAPI gas will cost around $3.2 per million British thermal units, which will rise to $6.5 per unit after including the tolling tariff and transit fee to be paid to Afghanistan.

It is estimated that Afghanistan will receive about $500-600 million in transit fee from Pakistan and India and will ensure security of the pipeline. India will also pay about $250 million in transit fee to Pakistan.

On the other side, the Pakistani media has quoted that The government of Pakistan is working on three gas import programmes which will bring about 4 billion cubic feet of gas per day (bcfd). This includes 1.325 bcfd from Tapi, about 750 million cubic feet per day (mmcfd) from the Iran-Pakistan pipeline and about 2 bcfd from LNG imports.

Turkmenistan will make an investment of around $25 billion to deliver around 3.2 bcfd of gas to three energy-hungry countries – Afghanistan, Pakistan and India – by December 2019 for 25 years.

Of the total, $15 billion will be poured into developing the gas field whereas $10 billion will be spent on laying a 1,680km-long pipeline.

 

The Afghan Tribune | Web Desk | Published: March 04, 2016, 11:48 AM

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