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Afghanistan Procurement News Notice - 76574


Procurement News Notice

PNN 76574
Work Detail Experts warned that the project, which is still not fully funded, is unlikely to be operational for another decade Islim Cheshma: Afghanistan said Wednesday work would begin on a $10 billion gas pipeline traversing South Asia as officials joined dignitaries in neighbouring Turkmenistan to celebrate its completion on that side of the border. Progress on the TAPI pipeline -- running through Turkmenistan, Afghanistan, Pakistan and India -- has been repeatedly delayed because of security issues in conflict-ravaged Afghanistan. "From today the operations will start on Afghanistans soil," Taliban government spokesman Zabihullah Mujahid said in comments broadcast by Afghan state television. At the border ceremony in Islim Cheshma in Turkmenistan, officials on both sides, including Afghan Prime Minister Hassan Akhund, hailed the project. "This project will benefit not only the economies of the countries participating but also the countries of the whole region," the President of Turkmenistan Serdar Berdimuhamedow said in a video broadcast live at the ceremony. However, experts warned that the project -- which is still not fully funded -- is unlikely to be operational for another decade. In the Afghan border province of Herat, a public holiday was declared to mark the occasion, with posters celebrating the project plastered around the capital of the same name. The pipeline will see around 33 billion cubic metres of natural gas each year extracted from the Galkynysh gas field in the south-east of Turkmenistan. It will be pumped through a 1,800-kilometre (1,120-mile) pipeline traversing Afghanistan, including Herat and Kandahar in the south, before crossing into restive Balochistan province in Pakistan and ending in Fazilka in Indian Punjab. Pakistan and India will each purchase 42 per cent of the gas deliveries, and Afghanistan 16 per cent, while Kabul will also benefit from lucrative transit fees of around $500 million per year, according to Afghan media. Work on the Turkmen side began in 2015 and was initially scheduled to start in Afghanistan in 2018, but has been repeatedly delayed. Indias commitment to the pipeline has also previously been questioned over its relationship with Pakistan and easy access to liquified natural gas markets, which are seen as potential stumbling blocks. It is the most significant development project for Taliban authorities since they seized power in 2021, ending their two decade-long insurgency against the foreign-backed government. The pipeline gives the government, which is not officially recognised by any nation, a strategic role in regional cooperation between Central Asia and South Asia, which is facing huge energy deficits. Afghanistan, although still under economic and financial sanctions from the West, is currently trying to relaunch ambitious projects, particularly in energy, mines and infrastructure. At the end of July, Afghanistan and China officially relaunched a major copper-extraction project in the worlds second-largest known deposit, near Kabul, which had been bogged down since 2008.
Country Afghanistan , Southern Asia
Industry Oil & Gas
Entry Date 13 Sep 2024
Source https://www.zawya.com/en/world/indian-sub-continent/afghanistan-says-to-begin-work-on-huge-gas-pipeline-mk6coxen

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