The shareholders of TAPI Pipeline Company have agreed on their respective shareholding percentages and initialed the Shareholders Agreement.
TAPI Company will build, finance, own and operate the planned 1,600 kilometer Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. These milestones were achieved at the 23rd meeting of the TAPI Steering Committee attended by Petroleum Ministers of Turkmenistan, Afghanistan, Pakistan and India, and senior officials of the Asian Development Bank (ADB), in Ashgabat, Turkmenistan on 24 October 2015.
The Shareholders Agreement sets forth the principles agreed among the shareholders regarding the management and operation of TAPI Pipeline Company Limited, the rights and obligations of shareholders, and the ownership and transfer of shares.
Its initialing follows closely the endorsement of State Concern "Turkmengas" (Turkmengaz), as consortium leader of the TAPI pipeline and represents another step by the stakeholders to make this historical project a reality.
Once completed, the TAPI pipeline is expected to export up to 33 billion cubic meters of natural gas a year from Turkmenistan to Afghanistan, Pakistan and India over 3 decades. Turkmenistan has one of the world's largest proven gas reserves and the pipeline will allow it to diversify its gas export markets.
"ADB congratulates all the shareholders whose effective cooperation enabled the Shareholders Agreement to be initialed quickly," said Sean O'Sullivan, Director General of ADB's Central and West Asia Department. "This milestone also reflects the strong commitments from the TAPI countries. ADB looks forward to the stakeholders continuing to build on the strong momentum in the implementation of the TAPI pipeline project."
ADB has acted as Secretariat for the TAPI pipeline project since 2003.
In 2013, ADB was appointed Transaction Advisor. In the latter role, ADB facilitated the establishment of TAPI Pipeline Company Limited, the selection of Turkmengaz as consortium leader to spearhead the implementation of the pipeline, and the finalization of the Shareholders Agreement.