With the aim to meet the potential project sponsor for participating in the TAPI Pipeline Project, three (3) road shows are organized between 11thand 20thSeptember 2012 in Singapore, New York City and London.
The first and second parts of the roadshows were held in Singapore on 11th September 2012, and in New York on 13th and 14th September 2012, respectively, while the third part ended in London on 20th September. The road shows were coordinated by Asian Development Bank (ADB) and attended by representatives from Turkmenistan, Afghanistan, Pakistan and India. Pakistan delegation is represented by Mr. Mobin Saulat, Managing Director Inter State Gas System (ISGS) and a team comprising technical, commercial and legal experts from ISGS.
The Singapore road show was very well received by the market and renowned companies and Financial Institutions such as PETRONAS, TEMASEK and State Bank of India attended the road show. The invitees were given comprehensive presentation by ADB and TAPI members on overall structure of the project, supply source, the market demand in Afghanistan, Pakistan and India. The invitees were also updated on the current status and way forward.
Pakistan side during the interaction with the road show invitees updated them that Pakistan has recently launched new Petroleum Policy2012 and copies of the Policy were given. The salient features of Petroleum Policy such as improved and more incentivized pricing mechanism were described. The companies expressed interest in the policy.
The New York road shows were attended by world leading IOCs such as Chevron and Exxon Mobil and leading financial institutions CITI Group and US EXIM. All the participants expressed keen interest in the project. During the London Road Show, TAPI Parties met with British Petroleum, Shell, British Gas and Morgan Stanley. The notable invitees at the shows were Mubadala Group, Macquarie, RWE and Deutsche Bank.
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) Pipeline Project aims to export up to 33 billion cubic meters (bcm) of natural gas per year through a proposed approximately 1,800-kilometer (km) pipeline from Turkmenistan to Afghanistan, Pakistan and India. The estimated cost of the project is US$7.6 billion based on prefeasibility study done by PENSPEN.
The signing of the Gas Pipeline Framework Agreement (GPFA), Inter-Government Agreement (IGA), and Heads of Agreement (HoA) relating to Gas Sales and Purchase Agreement (GSPA) of the project was achieved in December 2010.
A major milestone was achieved in May 2012 when Pakistan-Turkmenistan and India Turkmenistan bilateral GSPAs were inked on 23rd May 2012. Turkmenistan-Afghanistan bilateral GSPA is in process of finalization.
In view of the project’s size and complexities, the Parties agreed that it is necessary to attract and select a consortium lead which can (i) attract financing, (ii) manage construction, and (iii) reliably operate the pipeline. This need is enshrined in the GPFA which was signed in December 2010 by Heads of State in Ashgabat, Turkmenistan.
The TAPI members apprised members of the steering committee on the progress and feedback received during the road shows. The members expressed their full confidence on the outcome of the road shows. The steering committee met on the second day of the 23rd Technical Working Group meeting which was held in Ashgabat from 22nd-23rd September 2012.