France's Total Likely to Win TAPI Contract

French energy major Total is expected to win project financing contract for the TAPI gas pipeline project, according to Pakistani newspaper Express Tribune.

Ministers of four countries, Turkmenistan, Afghanistan, Pakistan and India will meet on February 11 in Islamabad and attend a meeting of the steering committee on the gas pipeline project, officials have told the newspaper.

According to officials, Turkmenistan has agreed, in principle, to sign a service contract with Total, allowing the company to act as the consortium leader for financing the pipeline.

Two US energy companies, Chevron and ExxonMobil, too were in the race for the contract but dropped out of the race following dismissal of their demand for an equity stake in the project. Noticing an empty field, Total had entered the fray and negotiated a deal with Turkmenistan for gas exploration without seeking any stake, Express Tribune stated.

 Express Tribune reported that as per the deal Total will help extract gas from Turkmenistan’s fields, which will be exported to Afghanistan, Pakistan and India. In return, the company will be paid a service fee in cash or in kind. Two Pakistani companies, Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), are likely to be part of the consortium and take part in gas extraction in Turkmenistan.

Last year, gas companies of Turkmenistan, Afghanistan, Pakistan, and India established a company that will build, own and operate the planned 1,800-kilometer natural gas pipeline.

Turkmengas, Afghan Gas Enterprise, Inter State Gas Systems, and GAIL (India) Limited own equal shares of the company.

The TAPI pipeline will export up to 33 billion cubic meters of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India over 30 years.