Afghanistan Set to Begin Work on $10 Billion TAPI Pipeline
Afghanistan Set to Begin Work on $10 Billion TAPI Pipeline
Sub: IR
Sec: Int org
Why in News
Afghanistan has announced the commencement of work on the significant $10 billion TAPI (Turkmenistan-Afghanistan-Pakistan-India) natural gas pipeline project. This project is considered the most critical development initiative undertaken by the Taliban since they took control in 2021.
TAPI Pipeline:
| Aspect | Details |
| Name | TAPI Pipeline (Turkmenistan-Afghanistan-Pakistan-India Pipeline), also called the ‘Peace Pipeline’. |
| Length | 1,814 kilometres. |
| Capacity | Transports 33 billion cubic metres (bcm) of natural gas annually. |
| Route | Begins at the Galkynysh gas field in Turkmenistan, passes through Afghanistan and Pakistan, and terminates at Fazilka, India (near the Indo-Pak border). |
| Significance | India and Pakistan are set to purchase 42% of the gas each, while Afghanistan will receive 16%. Additionally, Afghanistan will benefit from transit fees of about $500 million per year. |
| Components | Includes procurement, installation, and operation of the pipeline and related facilities within Afghanistan and Pakistan. |
| Financing | – Primarily funded by the Asian Development Bank (ADB), which acts as the transaction adviser. – Turkmenistan took a $700 million loan from the Islamic Development Bank in December 2016. – Afghanistan, Pakistan, and India made an initial investment of $200 million. |
Progress and Delays: Work on the Turkmenistan side of the pipeline started in 2015, but the project faced numerous delays in Afghanistan due to security concerns, political instability, and financial challenges.
The project, initially scheduled to begin in Afghanistan in 2018, was delayed further following the Taliban’s takeover in 2021. Experts estimate that the pipeline is unlikely to be operational for at least another decade, with funding and security issues still unresolved.
Afghanistan’s Strategic Role: The TAPI pipeline places Afghanistan in a strategic role, linking energy-deficient South Asia with energy-rich Central Asia.
