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Saudi Arabia May Support Financing TAPI Gas Pipeline

in Afghan Business

Saudi Arabia May Support Financing TAPI Gas Pipeline

Local news sources from Saudi Arabia say that the country is studying the issue of supporting financing for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects.

“Saudi Arabia’s support of gas exports from Turkmenistan to India is the biggest shift in world trade of liquefied natural gas (LNG) for India,” Saudi newspaper Al-Riyadh quotes Minister of Energy, Industry and Mineral Resources of Saudia Arabia Khalid Al-Falih.

This comes as Saudi Arabia is promoting joint investments in the countries of the Caspian region in the energy, oil, gas and mining sectors.

TAPI is an important linchpin in the realization of the New Silk Road in the arena of energy where Afghanistan again plays a central role in connecting energy-rich Central Asia to energy-deficient South Asia. The idea of the USD 7.6bn (initial estimate of the cost) pipeline first originated in 1995 when the Turkmenistan and Pakistan leaders signed a Memorandum of Understanding (MoU).

The project aims to export up to 33 billion cubic meters (bcm) of natural gas per year through a proposed 1,800-kilomter pipeline from the Dauletabad gas field in Turkmenistan along the highway through Herat, Helmand and Kandahar in Afghanistan, to Quetta and Multan in Pakistan, and on to Fazilka in India. The pipeline could become a recipe for long-term stability in Afghanistan by generating revenue for the Afghan government and creating jobs for Afghans in general.


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