Ï TAPI gas pipeline: factors for successful implementation of the project
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TAPI gas pipeline: factors for successful implementation of the project

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Turkmenistan has successively implements the energy policy aimed at the large-scale development of the national fuel and energy complex and its dynamic integration into the international energy system. The Turkmenistan-Afghanistan-Pakistan-India interstate gas pipeline is to be one of the core projects, which are of significant economic importance not only for our country but for transit states and consuming countries as well.

The length of the pipeline, which will run along the territory of Afghanistan and Pakistan to the border with India, will be 1,814 kilometers and the annual project capacity will make up 33 billion cubic metres of gas.

Representative of the Turkmengas State Concern on the Board of Directors of «TAPI Pipeline Company Limited» Muhammetmyrat Amanov tells about the project implementation:

“The economic rationale of the TAPI project, which is based on the high demand for natural gas in South Asian countries, is proved by specialists of the countries participating in the project and independent international experts testifying to the guaranteed potential of Turkmenistan to supply natural gas along this route on a long-term basis. We are talking about the giant gas deposit Galkynysh, which is under the initial stage of development implemented in several stages. The main supplies of gas to the TAPI gas pipeline will be secured due to the third stage of development with the annual project capacity of 33 billion cubic metres of natural gas. Authoritative foreign companies and financial institutions have been already invited to take part in the Galkynysh-3 project and we hope that our cooperation will be mutually beneficial and constructive.

The Turkmengas State Concern, that is responsible for the development of the deposit and construction of the Turkmen section of the TAPI Project, announced a tender for services on managing the project, which will be implemented jointly with the Islamic Development Bank. We do it in order to attract experienced consulting companies to optimize the costs on the third stage of development – construction of two big gas-purifying plants with the annual capacity of 16.5 billion cubic metres of commercial-grade gas, industrial and social infrastructure in the field.

At the same time, our specialists discuss with potential contractors – companies in Japan, Turkey, Korea and European countries the technical and commercial offers for the terms of references and specify the quality characteristics of materials, prices, etc. The financial and credit agencies of these states discuss the key aspects of the project funding.

The Turkmengas State Concern, the specialists of which will coordinate the work on construction, financing, managing and operation of the pipeline, stands as the customer for the Turkmen section of the TAPI project.

Construction of the strategic pipeline on the Turkmen section is carried out by the national fuel and energy sector.

At the request of the Directorate for the development of gas fields and construction of pipelines of the Turkmengas State Concern, engineering service group performed a complex of engineering and survey works that will allow choosing the best route on the track of the future main gas pipeline - from super-giant field "Galkynysh" to the border with Afghanistan.

Contracting organizations are building the first kilometres of the linear part of the future gas pipeline. At the same time, the terms of reference for the design and construction of compressor stations and pipeline infrastructure have been drafted. The tender documents for the involvement of international financial institutions and companies to project management are under preparation. The Board of Directors of the Islamic Development Bank made the decision on financing to cover the costs of the construction of the Turkmen section of the pipeline.

The leader of the consortium - TAPI Pipeline Company Limited is the customer for the section of the gas pipeline, which will run through the territory of Afghanistan and Pakistan. Once the shareholders' agreement was signed in December, 2015 and the investment agreement to finance the construction of the main gas pipeline - in April 2016, the implementation of the project has started. Currently, the works on the establishment of the project office of TAPI Pipeline Company Limited are carried out.

At the same time, we prepare tender documents for the services on project management, legal and financial services. We have regular discussions with stakeholders, international companies and financial institutions to attract new investments.

The complex development of huge hydrocarbon reserves plays a significant role in Turkmenistan's energy program designed for the next decades. It opens up wide opportunities to implement long-term international projects for the brining strategic raw materials to the world export markets”.