GAIL to invest $5 million in TAPI gas pipeline SPV

The government today approved the formation of a special purpose vehicle (SPV) for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project and also appointed GAIL India Ltd as India's representative in the SPV.

GAIL will also make an initial investment of $5 million in the SPV, to be called TAPI Ltd.

At the steering committee on 23 September 2012, Turkmenistan had suggested the formation of an SPV by the TAPl members. The SPV would take up the feasibility study and design work of the TAPl pipeline to meet the agreed timelines for the project, as well as search for a consortium lead.

Turkmenistan and Pakistan agreed to the formation of TAPl Ltd considering it to be in consonance with the GPFA.

Afghanistan also agreed to the formation of TAPl Ltd so long as there was consensus amongst the parties.

TAPl Ltd is required to have an initial contribution of $20 million, to be contributed equally by the four partners at $5 million each.