GAIL (INDIA) LIMITED
TAPI Pipeline Company incorporated by member countries
Company to build, own and operate 1,800 km pipeline from Turkmenistan to India
New Delhi, November 13, 2014: GAIL (India) Limited, India’s leading natural gas company, along with state gas companies of Turkmenistan, Afghanistan and Pakistan have established a company that will build, own and operate the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline.
State Concern “Turkmengas”, Afghan Gas Enterprise, Inter State Gas Systems (Private) Limited and GAIL will own equal shares of the company, TAPI Pipeline Company Limited (TPCL)
The company has been incorporated as a Special Purpose Vehicle in the Isle of Man, a British Crown dependency, located in the Irish Sea. This SPV would be responsible for finance, design, construction, operation and maintenance of the TAPI pipeline.
ADB was appointed the transaction advisor for the TAPI gas pipeline project in November 2013. In that role, ADB advised on the establishment of the TAPI pipeline company as an integral part of the larger goal of identifying and selecting a consortium leader to spearhead the construction and operation of the pipeline. When selected, the consortium leader will be expected to take a substantial stake in 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. Turkmenistan has the world’s fourth-largest proven gas reserves, and the pipeline will allow the landlocked country to diversify its gas export markets to the southeast. Turkmen gas in turn will provide a key new source of fuel for Afghanistan, Pakistan, and India.
India is pursuing the Turkmenistan – Afghanistan – Pakistan – India (TAPI) Pipeline project to receive Natural Gas supply from the Yolotan Osman (Galkynysh) fields in Turkmenistan. The 1800 kms of pipeline will carry 90 MMSCMD of natural gas, of which India and Pakistan will receive 38 MMSCMD each and Afghanistan’s share is 14 MMSCMD. Currently, Afghanistan has indicated that it will be taking volumes of the tune of 1.5 – 4 MMSCMD. Volumes not taken by Afghanistan can be equally shared between India and Pakistan. The landfall point of the pipeline in India will be at Fazilka (Punjab).