Indian GAIL Gets to Invest in TAPI Project
Monday 11 February 2013
NEW DELHI (DNA) – Giving a big push to the trans-border Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, the Indian Union Cabinet last Thursday authorised GAIL India to invest $5 mln in the venture set up to implement the project. Originally conceived in 2006, the new target to start constructing the pipeline now by this year-end. GAIL is the largest state-owned natural gas processing and distribution company headquartered in New Delhi, India.
India is aggressively pursuing the matter since the other trans-border pipeline – Iran-Pakistan-India (IPI) project – has been put in cold storage due to Iran’s strained relations with the US. It will also help reduce heavy reliance on the imported oil.
Last September, the four countries agreed to Turkmenistan’s proposal to set up a company with a shared capital of $20 mln as a “special purpose vehicle” to take up the feasibility study and design work, and search for a consortium to meet the agreed timelines. Last May, GAIL and Pakistan’s Inter-State Gas System Private have already signed a gas sales and purchase agreement with Turkmengaz, the state company of Turkmenistan, for supply of gas from its Dauletabad field.