According to the Pakistan Observer, as a major development, Turkmenistan has allocated US$2 billion from its own resources to implement TAPI gas pipeline project to export gas to Afghanistan, Pakistan and India that will pass through war-torn Afghanistan.
" $2billion has been allocated to transform TAPI project into reality," officials privy to the development told Pakistan Observer adding that Turkmenistan has established a company for financing of TAPI gas pipeline to complete the project by end 2019.
Turkmenistan has already hired a Japanese consortium to develop the gas field and construction of pipeline work in Turkmenistan territory had been awarded to Chinese firm to lay 200 km pipeline.
Pakistan government has imposed a levy for financing of the project. As many as $200 million will be spent by each country Afghanistan, Pakistan and India to lay pipeline to transport gas.
Turkmenistan has to develop two fields for gas transport under TAPI. In Afghanistan security survey work has been done and mine swiping work has been started. Target of completion is four years.
Turkmenistan will invest around $25 billion to deliver 3.2 billion cubic feet of gas per day (bcfd) to energy-hungry Afghanistan, Pakistan and India by December 2019, which will continue for 25 years
A gas sale and purchase agreement had already been signed in 2013 to set the pricing mechanism under which the gas price at Turkmenistan border would be around 20% cheaper than Brent crude.
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