Afghanistan: Work begins on the TAPI gas pipeline between Central and South Asia

Afghanistan launches construction of the TAPI gas pipeline, a USD 10 billion project linking Turkmenistan, Pakistan and India to transport natural gas over 1,800 km.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline enters a decisive phase with the start of construction work in Afghanistan.
The project, valued at $10 billion, aims to transport 33 billion cubic meters of natural gas a year from Galkynysh, one of the world’s largest gas fields in Turkmenistan.
By crossing Afghanistan, Pakistan and India, TAPI aims to diversify energy routes and strengthen regional integration.

A long-awaited energy integration project

Conceived in the 1990s, TAPI is experiencing delays due to conflicts in Afghanistan and political tensions between the countries involved.
The pipeline route covers some 800 km of Afghan territory, passing through Herat and Kandahar before reaching Quetta in Pakistan and Fazilka in India.
The launch ceremony took place in Islim Cheshma, and was attended by Afghan and Turkmen authorities.
Turkmen President Serdar Berdimuhamedow emphasized the economic benefits for the partner countries and the region.

Financial Challenges and Geopolitical Issues

Financing for the pipeline remains uncertain.
Initial estimates relied on investments from international companies and bank loans, but the current situation complicates access to funds.
Industry experts, such as Swapnil Babele of Rystad Energy, expect further delays and predict that the pipeline will only be commissioned within the next decade.
The project will depend on regional stability and the ability of stakeholders to guarantee safety along the route.

Resources and Export Diversification

For Turkmenistan, TAPI represents a strategic alternative for diversifying its gas exports, currently dominated by China.
The project offers a more affordable supply of natural gas than liquefied natural gas (LNG), and ensures regular deliveries to the Pakistani and Indian markets, which will each receive 42% of gas volumes.
Afghanistan, despite its diplomatic isolation and economic sanctions, stands to benefit from transit fees of around $500 million a year.

Related Projects and Regional Development

Alongside the launch of TAPI, bilateral projects such as a fiber optic line to Herat, a power line and a railway bridge are also being promoted to strengthen regional infrastructure.
These initiatives aim to maximize the pipeline’s impact by improving connectivity and supporting economic exchanges between the countries concerned.

Future prospects and challenges

Although TAPI offers growth opportunities for partner countries, the challenges remain numerous.
Security in Afghanistan, clarity of funding and tense diplomatic relations between India and Pakistan influence the project’s timing and feasibility.
While Afghanistan is positioning itself as a potential energy corridor, effective implementation of TAPI will require concerted efforts to overcome these obstacles.

Talen Energy launches $1.2bn debt financing and expands credit facilities to support strategic acquisitions of two combined-cycle natural gas power plants.
The Ukrainian government is preparing to raise natural gas imports by 30% to offset damage to its energy infrastructure and ensure supply continuity during the winter season.
Driven by rising electricity demand and grid flexibility needs, natural gas power generation is expected to grow at an annual rate of 4.8% through 2030.
Talen Energy secures $1.2bn term financing and increases two credit facilities to support the acquisition of two natural gas power plants with a combined capacity of 2,881 MW.
Tenaz Energy finalised the purchase of stakes in the GEMS project between Dutch and German waters, aiming to boost production to 7,000 boe/d by 2026.
Sembcorp Salalah Power & Water Company has obtained a new 10-year Power and Water Purchase Agreement from Nama Power and Water Procurement Company, ensuring operational continuity until 2037.
Eni North Africa restarts drilling operations on well C1-16/4 off the Libyan coast, suspended since 2020, aiming to complete exploration near the Bahr Es Salam gas field.
GOIL is investing $50mn to expand its LPG storage capacity in response to sustained demand growth and to improve national supply security.
QatarEnergy continues its international expansion by acquiring 27% of the offshore North Cleopatra block from Shell, amid Egypt’s strategic push to revive gas exploration in the Eastern Mediterranean.
An analysis by Wood Mackenzie shows that expanding UK oil and gas production would reduce costs and emissions while remaining within international climate targets.
Polish authorities have 40 days to decide on the extradition of a Ukrainian accused of participating in the 2022 sabotage of the Nord Stream pipelines in the Baltic Sea.
The Japanese company has completed the first phase of a tender for five annual cargoes of liquefied natural gas over seven years starting in April 2027, amid a gradual contractual renewal process.
Baker Hughes has secured a contract from Bechtel to provide gas turbines and compressors for the second phase of Sempra Infrastructure’s LNG export project in Texas.
Targa Resources will build a 500,000 barrels-per-day pipeline in the Permian Basin to connect its assets to Mont Belvieu, strengthening its logistics network with commissioning scheduled for the third quarter of 2027.
Brazilian holding J&F Investimentos is in talks to acquire EDF’s Norte Fluminense thermal plant, valued up to BRL2bn ($374 million), as energy-related M&A activity surges across the country.
Chevron has appointed Bank of America to manage the sale of pipeline infrastructure in the Denver-Julesburg basin, targeting a valuation of over $2 billion, according to sources familiar with the matter.
Hungary has signed a ten-year agreement with Engie for the annual import of 400 mn m³ of liquefied natural gas starting in 2028, reinforcing its energy diversification strategy despite its ongoing reliance on Russian gas.
Wanted by Germany for his alleged role in the 2022 sabotage of the Nord Stream pipelines, a Ukrainian has been arrested in Poland and placed in provisional detention pending possible extradition.
An unprecedented overnight offensive targeted gas infrastructure in Ukraine, damaging several key facilities in the Kharkiv and Poltava regions, according to Ukrainian authorities.
The Dunkirk LNG terminal, the second largest in continental Europe, is seeing reduced capacity due to a nationwide strike disrupting all French LNG infrastructure.