There are hopeful signs of the starting of the ambitious multi-partner pipeline project called TAPI that could yield Afghanistan 400 million USD annually, and thousands of jobs.
New Mines and Minerals Minister Daud Shah Saba confirmed three companies – one each from France, Russia and China – have expressed interest in becoming the commercial consortium leader for financing the project that plans to pipe gas from Turkmenistan to Afghanistan, Pakistan and India. The bids will be discussed at the upcoming Kabul meeting of the consortium of four state-owned companies: Turkmengas, Afghan Gas Enterprise, Inter State Gas Systems (Pakistan), and GAIL (India) Ltd. They are equal partners in TAPI that will build, own and operate the planned 1,800-km pipeline.
“The French-company Total, ARTI Global of Russia, and China National Petroleum Corporation are participating in the bid in two months in Kabul,” the minister said. “I hope the decision would be positive.”
According to Saba, the project would serve to economically link the region. “Not only will it solve the energy problems of Pakistan and India, it has many economic advantages for Afghanistan,” he added.
The pipeline from the largest gas field in Turkmenistan, Galkynysh, will enter the country at Herat and cross into Pakistan through Kandahar. A month ago, Bangladesh repeated its desire to join TAPI. It first showed interest in 2012 but abandoned the idea after its state-owned Gas Transmission Company Ltd., in a preliminary study, found the country’s inclusion to be non-viable, according to the Bangladesh daily, Financial Express.
Rafea Sidiqi, the spokesperson of the Ministry of Mines and Petroleum said once the gas starts to flow, Afghanistan would claim transit fees from Pakistan and India. The 56-inch diametre pipeline was expected to cost 7.6 billion USD three years ago. Revised estimates now put it at nearly 10 billion USD.
Last November, TAPI countries established a company to “build, own and operate” the pipeline – a sign of their intent to enhance energy security in the region. The Asian Development Bank was appointed the transaction adviser for the project.
Mohammad Yar Yar, leader of Wadan, urged the government to not lose TAPI. “400 million USD annually is a big support to our country’s treasure. The government should fulfill all conditions for the implementation of the project,” he says. “If this project is implemented we can put economic pressure on Pakistan, for the sake of our internal security,” he adds.
Security threats
There are serious security challenges for the proposed 800-km pipeline through the provinces of Herat, Farah, Helmand and Kandahar before it enters Pakistan.
Abdul Rahman Dard, an economics lecturer, fears both external and internal opponents of the government could target the project. “Even local armed individuals should be considered (a threat), they can use this (TAPI) as tool to pressure the government,” he says.
Dr Abdul Qayum Mohmand, regional affairs expert, says security for the pipeline must be guaranteed by partnering countries. “The project, which was mooted in the 1990s has been delayed because its implementation through Iran was expensive and Afghanistan was embroiled in civil war. Now there is order, and security is assured,” he says.
Both Afghanistan’s minister of mines and petroleum and his Pakistani counterpart, Shahed Khaqan Abbasi, have assured their partners that the pipeline would be secure in their respective countries. “We are willing to cooperate for the implementation of the project, and work should start before new problems rise,” Minister Saba said.
The TAPI pipeline will export up to 33 billion cubic metres of natural gas a year from Turkmenistan to Afghanistan, Pakistan and India over 30 years.
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