India Approves SPV for TAPI Project

The Indian cabinet on Thursday approved the formation of the special purpose vehicle (SPV) for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project and to permit GAIL India Ltd. to join the SPV. 

TAPI Ltd, which would be based in Dubai, would take up the feasibility study and design work of the TAPl pipeline to meet the agreed timelines for the project, as well as search for a consortium lead, Indian government said in a statement. 

“TAPl Ltd. is required to have an initial contribution of $20 million that is $5 million from an identified entity from each of the four participating countries. GAIL, being a Navratna Company, is empowered to make an investment of this level for India,” the statement said. 

The four countries involved in the TAPI Gas pipeline project, signed an Inter-Governmental Agreement along with a Gas Pipeline Framework Agreement (GPFA). To accelerate the project, parties have formed the Minister Level Steering Committee and Technical Working Group (TWO). Suitable provisions for security & safety of the pipeline have been made in the Inter-Governmental Agreement (IGA) and Gas Pipeline Framework Agreement (GPFA). 

In the meeting of the 16th Steering Committee held on 23rd September, 2012, all parties reaffirmed their commitment and intention to fast track the regional co-operation project.

The 1,680 km pipeline will carry 90 million cubic metres a day (mmcmd) of gas and is scheduled to become operational in 2018. India and Pakistan will get 38 mmcmd each, while the remaining 14 mcmd will be supplied to Afghanistan.

TAPI will carry gas from Turkmenistan's Galkynysh field, that holds gas reserves of 16 trillion cubic feet. From the field, the pipeline will run to Herat and Kandahar province of Afghanistan, before entering Pakistan.