October 07, 2008

GAIL joins consortium to build TAPI gas pipeline project

It is reported that GAIL India Limited will be part of a consortium that will build the USD 7.6 billion Turkmenistan Afghanistan Pakistan India gas pipeline. The consortium comprising national oil companies of the four countries will build and operate the 1,680 kilometer long pipeline from Dauletabad gas field in Turkmenistan to India through Afghanistan and Pakistan.

The participating countries will together float a special purpose vehicle for the purpose. International companies are also likely to join in laying and operation of the pipeline.

Under a draft framework agreement signed by oil ministers from Turkmenistan, Afghanistan, Pakistan and India last week, the pipeline will transport 100 million standard cubic meters per day of gas from the Dauletabad gas field, of which India will get 60 million standard cubic meters.

Talks on the TAPI gas pipeline project have been underway since 2002. In 2006 India was invited as an observer. India last week formally joined the US backed project to meet its growing energy needs. Rival Iran Pakistan India gas pipeline is to be built by the three nations separately in their respective territories.