UAE Investors Interested in TAPI Pipeline Project

Multi-billion dollar Turkmenistan, Afghanistan, Pakistan and India (TAPI) pipeline project is attracting interest of number of investors from the United Arab Emirates (UAE).

Afghanistan's ambassador to the UAE, Abdul Farid Zikria, told Khaleej Times, investment from state owned entities and some of the private investors would be into the entire project.

He said TAPI pipeline is a major infrastructure project in the energy-hungry region in that part of Asia that would change the development scene in times to come.

"Afghanistan will be offering vitally-important transit facilities before the pipeline will go into Pakistan and Afghanistan - the two main consumers of natural gas," he said.

Last week, the four TAPI nations agreed to invest $200 million in the next stage of the project. The agreement was signed during 24th meeting of the steering committee of the TAPI pipeline project which was held in Ashgabat on Thursday.

The much delayed transnational pipeline was formally inaugurated on December 13. TurkmenGaz is the leader of the consortium and has 85 percent equity. Along with GAIL India, ISGS of Pakistan and Afghan Gas Enterprise (AGE) have 5 percent stake each. The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for 30 years and is planned to become operational in 2018.