The spadework on the $3.3 billion 1660 km Turkmenistan-Afghanistan-Pakistan gas pipeline is near finalisation for the coming steering committee meeting in November. The construction of the pipeline can materialise as big oil and gas companies of USA, EU, Russia and a local consortium have shown interest in financing and constructing the pipeline, ADB sources told Business Recorder.
They said that modalities for risk mitigation in security arrangements, demand and supply audit of the gas to be supplied/used and three model agreements have been prepared which will be submitted to the committee.
The model agreements have been given final shapes for sale and purchase of gas among the countries, gas transportation agreement for the countries of passage and host country agreement.
The steering committee will examine the techno-economic feasibility study prepared by the Bank. Another study pertaining to risk mitigation, which is ready, will also be examined. The study speaks of the steps for streamlining gas supply and reducing disturbances. The steering committee has already approved the marketing study.
The lengthy paper work has delayed the earlier meeting scheduled for July this year, said sources.
The steering committee, comprising oil ministers of the three countries, had written to New Delhi to join the project, which would then be renamed as 'TAPI', where 'I' would stand for India.
Sources said that India is "positively inclined" to the proposal, but it is not sure if India would be represented at the next meeting.
The pipeline would provide 30 billion cubic feet gas annually, to cover the shortfall of Pakistan's quickly depleting gas reservoirs to be exhausted within a decade.
Sources expressed fear that cost of the project could go up in case the project is delayed.