July 13, 2013 KABUL – the Contract on Sales and Purchase of gas was signed between
Afghanistan and Turkmenistan on July 9 in Ashgabat.
This contract was signed on the sidelines of the “The 17th Steering Committee Meeting on Turkmenistan-Afghanistan-Pakistan-India TAPI Project”, which was held on 9 of July in Ashgabat.
This meeting was hosted and chaired by Khojamukhamedov the Deputy Prime Minister of Turkmenistan, in which the ministers of petroleum and mines, ambassadors, officials of the ministries of foreign affairs and technical agencies of the member countries participated.
This contract was signed between Afghan Gas and Turkmen Gas companies and the Ministries of Mines and Petroleum of Afghanistan and Turkmenistan. The signing of this contract is considered as a fundamental and practical step towards implementing the TAPI Project through which Afghanistan will address its gas needs for the next 30 years.
Based on this contract, following the completion of this project, Afghanistan will purchase 500 million cubic meters of gas in the first ten years, and 1bilion and 1.5 billion cubic meters of gas annually in the second and third ten years respectively.
The gas imported from Turkmenistan will be used for industries and generation of power for homes and factories.
At this meeting, the four countries in cooperation with the Asian Development Bank, agreed to establish a joint consortium entitled TAPI Ltd by the end of 2013 which will comprise of the gas companies of the member countries.
TAPI Project is one of Afghanistan’s major regional projects. The length of this project is 1800 km and passing through the borders of Turkmenistan and India, it will traverse several provinces. In addition to buying gas, Afghanistan will also play an important role as a transit country for implementation of this project.
As a result of the transit of this pipeline, Afghanistan will also earn about $ 500 million annually