The much delayed $7.6 billion worth Turkmenistan Afghanistan Pakistan India (TAPI) pipeline could finally get moving in terms of construction in 2015, as the crucial meeting of the four member nations which is scheduled to take place on February 11-12 in Islamabad, may finalise the consortium partner for executing the project.
Sources close to the development told The Pioneer that during the previous meeting of the member nations, which was held in Turkmenistan capital Ashgabat in November, some of the top major energy companies like France's Total, and US' Chevron and ExxonMobil had shown interest in building the pipeline and there is a likelihood that one of them could be given a service contract for maintaining the pipeline. If all goes off well, then a consortium partner could also be decided from among these entities, they added.
Though all the three companies wanted a stake in Turkmenistan's upstream Galkyanysh gas field, which is going to be the main source of gas for the ambitious project, the Central Asian nation is not open to the offer, as that country's laws don't allow giving stakes to foreign entities in its fields.
With the Turkmenistan Government refusing the three companies' request of seeking stakes in its gas field, the issue of finalising a consortium partner - one which will execute the project - has been hanging fire.
However sources said that Turkmenistan is open to the prospect of offering a service contract to at least one of the three entities for maintaining the pipeline and a final call is likely to be taken during February 11-12 meeting of the steering committee of the project, which is scheduled to take place in Islamabad.
During the November meeting of the steering committee, talks had almost been finalised with Total for becoming the consortium partner, however its keenness to seek a stake in Turkmenistan's gas field, scuttled the talks, as according to sources, all the member nations were of the opinion that there should be a level playing field for all the interested parties namely Chevron as well as ExxonMobil.
The pipeline was originally scheduled to start functioning by 2017, but due to various issues including security concerns - as the pipeline is to pass through conflict ridden countries like Afghanistan and Pakistan - and other matters related to valuation and more importantly lack of a consortium partner, have delayed its start.
Now the Indian Government is hoping that if a consortium partner is decided upon during the Islamabad meeting, then at least the construction of the 1,814 km long pipeline could begin in 2015.
Petroleum Minister Dharmendra Pradhan recently informed lok Sabha during the just concluded Winter session of Parliament that the volume of gas likely to be supplied to India once the pipeline comes up, is 38 mmscmd (Million Metric Standard Cubic Metre per Day) for a period of 30 years.
Two Government level agreements have been signed for TAPI project namely, Gas Pipeline Framework Agreement and Inter Governmental Agreement among the four member countries. The investment in the pipeline project shall be made by all the project proponents, including the Consortium leader. However, the investment structure would be finalised only after the selection of a Consortium leader, Pradhan had said in Parliament.