Regional : Preparing the TAPI Gas Pipeline Project (Phase 1)

Sovereign Project | 52167-002

The TAPI pipeline has been under discussion for more than 20 years. In 2013, the governments of Afghanistan, India, Pakistan and Turkmenistan directed their respective state gas entities (hereinafter collectively referred to as the TAPI Sponsors) to develop, and invest in, the TAPI pipeline. The TAPI Sponsors became the founding shareholders of the TAPI Pipeline Company Limited (TPCL) incorporated in the Isle of Man (United Kingdom) in 2014 and holding its main office in Dubai (United Arab Emirates) since 2016. TPCL mandate is to develop, own, and operate the TAPI pipeline.

Project Details

Related Projects

Project Name
Preparing the TAPI Gas Pipeline Project (Phase 1)
Project Number
52167-002
Country / Economy
  • Regional
  • Afghanistan
  • Pakistan
  • Turkmenistan
Project Status
Active
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 9992-REG: TAPI Gas Pipeline Project (Phase 1)
Source Amount
Technical Assistance Special Fund US$ 750,000.00
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP6: Strengthening governance and institutional capacity
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Energy / Oil and gas transmission and distribution

Gender
Some gender elements
Description

The TAPI pipeline has been under discussion for more than 20 years. In 2013, the governments of Afghanistan, India, Pakistan and Turkmenistan directed their respective state gas entities (hereinafter collectively referred to as the TAPI Sponsors) to develop, and invest in, the TAPI pipeline. The TAPI Sponsors became the founding shareholders of the TAPI Pipeline Company Limited (TPCL) incorporated in the Isle of Man (United Kingdom) in 2014 and holding its main office in Dubai (United Arab Emirates) since 2016. TPCL mandate is to develop, own, and operate the TAPI pipeline.

Project Rationale and Linkage to Country/Regional Strategy

The governments of Afghanistan, Pakistan and Turkmenistan have each requested the Asian Development Bank (ADB) financing support for phase 1 of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline (the project) . In addition, the Government of Turkmenistan has requested ADB to provide a partial credit guarantee (PCG) in support to the project. The pipeline will extend approximately 1,600 kilometers (km), from the Turkmenistan-Afghanistan border to the Pakistan-India border. At full design capacity, the 56-inch TAPI pipeline can transport up to 33 billion cubic meters (bcm) of natural gas per year from Turkmenistan to Afghanistan, Pakistan, and India over a commercial operations period of 30 years.

Suboptimal regional gas and energy trade markets contribute to limited economic growth, increased poverty (possibly leading to social unrest) and exacerbated greenhouse gas emissions in the TAPI region. The project will considerably help improve regional energy trade, as it will build and support requisite natural gas supply and transportation capacity across the TAPI countries. Its realization will additionally help address several issues causing the suboptimal regional gas market by improving cross-border cooperation among multiple stakeholders, resolving some of the security issues in Afghanistan and Pakistan, as well as improving institutional capacity to implement complex projects. It will also attract and catalyze investments and financing that would otherwise be unavailable and, ultimately, help boost regional economic growth.

The project comprises the design, procurement, installation and operation of the pipeline and related facilities (without compressor stations in phase 1) within Afghanistan and Pakistan. Concurrently, State Concern <> (Turkmengaz) makes use of its own resources (including financing secured from the Islamic Development Bank) to implement within Turkmenistan: (i) the appropriation of a dedicated portion of the Galkynysh gas field; (ii) the installation of approximately 200 km of upstream pipeline connecting the Galkynysh gas field with the project at the Turkmenistan-Afghanistan border; and (iii) the construction of one or more compressor stations. Similarly, GAIL (India) Limited (GAIL) will use its resources to implement within India the installation of approximately 10 km of downstream pipeline connecting the project at the Pakistan-India border with the existing GAIL gas network terminus in Fazilka. Once phase 1 is completed, the project is expected to transmit annually about one third (i.e. 11 bcm of gas) of the TAPI pipeline design capacity.

Once operational, the TAPI pipeline will allow Turkmenistan to diversify and expand its gas export markets to the southeast, into Afghanistan, Pakistan, and India. The Central Asia Regional Economic Cooperation (CAREC) Program Strategy for Regional Cooperation in the Energy Sector has identified the TAPI Pipeline as one of the main links in the inter-energy relationship among CAREC countries. Overall, the TAPI pipeline will have a transformational impact on regional cooperation and will also support other initiatives aimed at increasing growth and economic stability in the region. The project is aligned with the development strategies of Turkmenistan, Afghanistan, Pakistan and India (TAPI), as reflected in their respective country partnership strategies, and is also consistent with the objectives of ADB Strategy 2030.

Although the project was included in the 2020-2022 Country Operations Business Plans for Turkmenistan, Afghanistan and Pakistan, ADB has paused all TAPI project due diligence and processing activities (until further notice) due to the developments in Afghanistan since mid-2021. Consequently, the project has been removed from ADB's 2022 (Standby) work program and included in the 2023 work program. If/when ADB determines that project activities can be resumed, it is expected that it would take at least one additional year to bring the project back on track and prepare it for ADB board consideration from the moment when such determination is made.

Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Afghanistan - Nation-wide; Pakistan - Nation-wide; Turkmenistan - Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Jaer, Martin
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
Asian Development Bank

Timetable

Concept Clearance
-
Fact Finding
-
MRM
-
Approval
18 May 2020
Last Review Mission
-
Last PDS Update
30 May 2022

Funding

TA 9992-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 May 2020 - 18 May 2020 30 Apr 2022 31 Oct 2023 -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 1,400,000.00 2,150,000.00
Cumulative Disbursements
Date Amount
15 Sep 2023 0.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project (Phase 1): Technical Assistance Report Technical Assistance Reports May 2020

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.