Ashgabat, Turkmenistan, Oct. 22
By Huseyn Hasanov Trend:
The sixth session of the Intergovernmental Turkmen-Saudi Commission on Trade and Economic Cooperation was held in Ashgabat, the state news agency Turkmen Dovlet Khabarlary (TDH) reported.
As part of the event, "specific proposals were made to expand the partnership in the fuel and energy sector, in particular, to increase investment in the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline construction project", the textile sector, industry and the banking sector.
The meeting was attended by the Minister of Trade and Investment of Saudi Arabia, Majid bin Abdullah Al Qasabi.
The parties expressed the need to coordinate efforts in order to increase the volume of export-import oriented products. The importance of organizing meetings between the business circles of the two countries was emphasized, which will contribute to the implementation of new investment projects, the TDH noted.
The official Riyadh has already made its capital investments in the TAPI project.
In November 2017, the State Bank for Foreign Economic Affairs of Turkmenistan concluded an agreement with the Saudi Fund for Development on financing the purchase of gas pipes intended for the construction of the Turkmen section of the TAPI pipeline.
The construction of the pipeline began in December 2015.
The possible costs of the TAPI project vary within $8-10 billion.
The consortium, with the participation of the Asian development Bank (ADB), continues active negotiations with all interested parties. Various options of participation in the project, such as participation in the company's share, project financing, financing through international development banks and with the help of export credit agencies from around the world are being examined.
As the leader of TAPI Pipeline company Limited, Turkmengas State Concern, which has a controlling stake, acts as the main financier and project manager.
The consortium also includes the Afghanistan Gas Corporation, Inter State Gas Systems (Private) Limited and Indian GAIL.
The total length of the pipeline, with a capacity of 33 billion cubic meters of gas per year will be 1,840 kilometers. The fuel will be supplied from the Galkynysh gas field in Turkmenistan, the second largest in the world.
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