Indian companies express interest in TAP natural gas pipeline project

June 3, 2003
Indian Oil Corp. (IOC) has submitted a formal expression of interest to the Asian Development Bank (ADB) for participating in the proposed $2.5 billion Turkmenistan-Afghanistan-Pakistan natural gas pipeline project.

By an OGJ correspondent

MUMBAI, June 3 -- Indian Oil Corp. (IOC) has submitted a formal expression of interest to the Asian Development Bank (ADB) for participating in the proposed $2.5 billion Turkmenistan-Afghanistan-Pakistan natural gas pipeline project.

State-owned Gas Authority of India Ltd. (GAIL) also said it planned to submit an expression of interest to the ADB, the project's lead development partner assisting the Turkmenistan, Afghanistan, and Pakistan governments.

IOC and GAIL are proceeding despite delicate politics between Pakistan and India. A senior IOC spokesman said, "Trade ties between India and Pakistan are expected to improve in the near future."

The government of India has yet to take a position on India's participation in the project. Although IOC and GAIL are interested in the business opportunity, both companies have said that, if selected, they would not participate without government approval.

In April, India was formally invited by the governments of Pakistan, Turkmenistan, and Afghanistan to participate in the pipeline project (OGJ Online, Feb. 27, 2003). Participants said New Delhi's participation would make the project more viable, providing significant additional gas markets.

The pipeline, estimated in various reports as 1,300-1,600 km long, would carry 20-30 billion cu m/year of natural gas and likely would be constructed to Pakistan's Sui field, from which existing infrastructure could be tapped to supply major local markets (OGJ, Oct. 7, 2002, p. 21).