Pakistan India TAPINatural Gas PipelineEURASIA Gas New Game Changers 5 June Washington DC Rune StroemDirector Energy DivisionCentral and West Asia DepartmentTurkmenistanAfghanistanPakistanIndiaGas ID: 880201
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1 Turkmenistan, Afghanistan, Pakistan, In
Turkmenistan, Afghanistan, Pakistan, India (TAPI) Natural Gas Pipeline EURASIA Gas New Game Changers 5 June, Washington , DC Rune Stroem Director, Energy Division Central and West Asia Department Turkmenistan - Afghanistan - Pakistan - India Gas pipeline Galkynysh Fazilka • 1,800 kilometer pipeline • TKM - IND borders via AFG and PAK • Export of 60 to 90 million cubic meters per day • Estimated cost
2 of USD 7.8 billion • Galkanysh (
of USD 7.8 billion • Galkanysh (formerly South Yolotan – Osman) Natural gas field Supply vs. Demand T urkmenistan P akistan A fghanistan I ndia SELLER’S GAS SUPPLY - Turkmenistan • 6 th Largest proven gas reserves (~7.5 tcm ) (the World Fact Book, 2013) • 16th ranked natural gas producer, 2011 BUYERS’ ENERGY DEMAND (mmcd) 2006 2015 2030 AFG 1.5 4.3 10.8 PAK 202 263 414
3 IND 1166 1383 2362 * Energy Out
IND 1166 1383 2362 * Energy Outlook for the Asia Pacific, APEC/ ADB Oct 2009 Potential Timeline PHASE 1 – GOVERNMENT AGREEMENTS (Completed) Gas Pipeline Framework Agreement Inter Government Agreement Ended Agreements signed December 2010, TAPI Heads of State Summit, Ashgabat PHASE 2 – BUY/SELL AGREEMENTS (Completed) Heads of Agreement Gas Sales and Purchase Agreement APR 2011 MAY 2012 HoA signed September 2010, A
4 shgabat 100% of gas sales finalized
shgabat 100% of gas sales finalized PHASE 3 – PIPELINE COMPANY ESTABLISHMENT (On - going) Transaction Advisor Engagement Operations Agreement Sponsor Engagement Consortium Agreement SEP 2012 JAN 2013 JUN 2013 FEB 2014 Target Target Target Target PHASE 4 – PROJECT PREPARATION FEED and Network Code, Transportation Agreement, Host Government Agreement, Financial Close, EPC AUG 2015 PHASE 5 – P
5 ROJECT IMPLEMENTATION Construction and
ROJECT IMPLEMENTATION Construction and Commissioning AUG 2017 Gas Flow TAPI Agreements Framework Afghan Gas Enterprise GSPA Signatories + Project Sponsor To be sought by Transaction Advisor TAPI CONSORTIUM Inter - Government Agreement + Gas Pipeline Framework Agreement Host Country Agreements Transportation Agreements HoA - Gas Sales and Purchase Agreement Consortium Agreement IND Gov ’
6 t AFG Gov ’ t PAK Gov ’ t TKM
t AFG Gov ’ t PAK Gov ’ t TKM Gov ’ t Operational Agreement Pipeline System Rule (network code) IND Buyer PAK Buyer AFG Buyer TKM Seller TAPI Consortium Development • In GPFA Governments agreed – Each state gas company can participate in the Consortium – Consortium will design, construct, finance, operate and maintain the pipeline – Consortium leader selected through competitive solici
7 tation – the best offer for realiz
tation – the best offer for realization of the project • Each Government will – Enter into a Host Government Agreement with the Consortium. Each HGA will be providing the legal, regulatory and fiscal framework for the development, finance, construction, operation and maintenance of the Project – Promptly and properly enact regulatory documents necessary to make effective all rights, obligations and undertakings necessary for the projec
8 t – Ensure allocation of land for th
t – Ensure allocation of land for the project at fair value – Ensure the free movement of gas through its territory – Permit free movement of goods, materials, technology and personnel for the project – Conduct project business in US$ and permit import and export of currency – NOT expropriate, requisition or nationalize any part of the project What i s Next ● Complete and sign Operations Agreement ● Complete and sign
9 Transit Fee Agreements ● Establish
Transit Fee Agreements ● Establish TAPI pipeline consortium ● Prepare Feasibility Study and Information Memorandum ● Marketing to eligible parties ● Conduct bidding to select consortium leader Major Challenges • Security in AFG and PAK • Attracting consortium head • Financing and credit enhancement • Supply reliability • Construction material price volatility Thank you! Visit our web site: http://www.adb