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Saturday, August 31, 2024

Pakistan and Turkmenistan to Expedite TAPI Gas Pipeline

Pakistan and Turkmenistan are accelerating the TAPI gas pipeline project to enhance regional economic integration and energy security, promising substantial economic benefits and strengthened cooperation among participating nations.

Pakistan and Turkmenistan have agreed to accelerate the development of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. This decision emerged from a recent meeting between Pakistan’s Minister for Petroleum, Musadik Malik, and Turkmenistan’s Minister of Foreign Affairs, Rashid Meredow, during his two-day visit to Pakistan. “Substantial progress has been made through collaboration on the TAPI Gas Pipeline project aimed at promoting economic integration and energy security,” Musadik stated.

The TAPI pipeline, designed to carry 33 billion cubic meters (bcm) of natural gas annually, spans 1,800 kilometers from the Galkynysh gas field in Turkmenistan to the Indian city of Fazilka near the Pakistan border. This project, initiated in Afghanistan in 2018, is expected to alleviate chronic energy shortages in the region. Afghanistan is set to consume 5% of the gas, with Pakistan and India each receiving 1.325 bcm per day.

Strategic Benefits and Regional Cooperation

The meeting also involved the CEO of TAPI Pipeline Company, who highlighted the project’s significant progress due to Pakistan’s Ministry of Petroleum and the Special Investment Facilitation Council’s interest. Minister Rashid Meredow noted that a roadmap for enhancing cooperation between Pakistan and Turkmenistan would be prepared. Turkmenistan, holding 4% of the world’s natural gas reserves, aims to triple its gas output to 230 bcm over the next 20 years, exporting nearly 80%.

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Traditionally, Turkmenistan has sent its gas north to Russia but is now becoming a vital supplier to China, Iran, and Europe. The TAPI pipeline offers a new route to India and Pakistan, providing significant export markets. This pipeline is seen as a crucial element of regional economic infrastructure, with the Taliban in Afghanistan pledging cooperation despite ongoing internal conflicts.

Economic Impact and Future Prospects

The TAPI pipeline project promises to lower energy costs, boost industrial growth, create jobs, and foster economic development in the region. “Reliable and affordable energy supplies are vital for industrial sectors and the overall economic stability,” emphasized Musadik Malik. The project aligns with Pakistan’s strategic goal to position itself as a regional trade hub, leveraging its geopolitical position to connect the landlocked Central Asian republics with global markets.

In June, Pakistan and Turkmenistan signed a joint implementation plan to execute the TAPI project, witnessed by Pakistan’s Prime Minister Shehbaz Sharif and a Turkmenistan delegation led by Minister of Energy and Water Resources Daler Juma’a. This agreement underscores the commitment to enhancing regional cooperation and economic integration.

Turkmenistan plans to export gas to new markets, including India and Pakistan, through the TAPI pipeline, offering significant economic benefits. Pakistan, with a population of 85 million, aims to harness this opportunity to strengthen its energy security and economic growth. The TAPI project represents a milestone in fostering regional cooperation and sustainable development, reflecting the shared interests of participating nations.