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On Thursday, India and three other nations have decided to take joint ownership of TAPI pipeline that runs from Turkmenistan to India through Afghanistan and Pakistan. The $10-billion breakthrough construction that connects central and south Asia is a 1,800km energy lifeline.

Succeeding the project's 22nd Steering Committee meeting in Turkman capital Ashgabat, the oil ministry said, "Turkmenistan proposed that its state-owned company TurkmenGaz would lead the consortium for TAPI project with majority investment ... All sides endorsed the Turkmen proposal. It was agreed that all sides would make an investment in the project subject to techno-commercial viability, shareholders agreement and investment agreement.”

Compromise deal of TAPI pipeline

After foreign firms expressed reluctance to participate in the TAPI pipeline project, a compromise was reached between the parties. India Ratings said that the gas may become unavailable for operations by the user-industries, incase landed price of gas from the pipeline in India will become high at$10-12 per unit. This is more than double the gas-price in the domestic market.

Details of TAPI pipeline

With a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for a period of 30 years, the TAPI Pipeline will begin operations in 2018. Pakistan and India would receive 38 mmscmd each, while Afghanistan would get 14 mmscmd.

The gas would be carried by the TAPI pipeline from Turkmenistan's Galkynysh field, which has 16 trillion cubic feet gas reserves. TAPI pipeline  will run to Herat and Kandahar province of Afghanistan and enters Pakistan. In Pakistan, it will pass Quetta to reach Multan and finally ends at Fazilka (Punjab) in India.

-Sumana