TAPI gas pipeline update

The government gave green signal for setting up a special purpose vehicle (SPV) for Turkmenistan-Afghanistan-Pakistan-India (Tapi) pipeline project and permitted state-run GAIL to join the SPV.
The SPV will implement the multi-billion dollar project and cabinet has approved India's participation in the venture through GAIL. Each of the four countries will initially contribute $5 million each for the project.
The SPV would take up feasibility study and design work of the Tapi pipeline to meet the agreed timelines for the project, as well as search for a consortium lead. “The four countries involved in Tapi gas pipeline project, signed an inter-governmental agreement along with a gas pipeline framework agreement (GPFA). To accelerate the project, parties have formed the minister level steering committee and technical working group (Two). Suitable provisions for security and safety of the pipeline have been made in the agreements,“ said a government statement.
As no multinational company was willing to undertake the project with a share in the Turkmenistan's rich gas fields, the four countries decided to implement the project through the SPV.
However, Turkmenistan did not agree to provide a pie in its gas fields to foreign investors, as its national laws do not permit the same.
“As way forward, Turkmenistan suggested the formation of SPV by Tapi members. The SPV would take up the feasibility study and design work for Tapi pipeline to meet the agreed timelines for the project, as well as search for a consortium lead,“ the statement said.
The $7.6 billion Tapi project will transport gas from Turkmenistan. It is expected to be operational by 2018.