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Turkmenistan signs first contracts with India, Pakistan

23 May 2012 14:38 (UTC +04:00)

Baku - APA-Economics. Turkmenistan on Wednesday signed agreements with India and Pakistan to deliver gas through a new pipeline that will transit Afghanistan, the first contracts in the ambitious project.

The 1,700-kilometre (1,050-mile) TAPI pipeline aims to transport more than 30 billion cubic metres of gas annually from Turkmenistan to energy-hungry consumers in Pakistan and India as well as relieving shortages in Afghanistan.

The sale-purchase agreements for the yet-to-be-built pipeline were signed at a ceremony on the sidelines of the annual Turkmenistan oil and gas congress in its Caspian Sea resort of Avaza, just outside the city of Turkmenbashi.

They were inked by the head of the state gas company Turkmengaz Sakhatmurad Mamedov with representatives of Indiaâ€™s Gail Ltd and Pakistanâ€™s Inter State Gas System.

â€œToday we are witnesses of a historic event, not just of regional but of world scale,â€ said Turkmenistan Deputy Prime Minister Baimurat Khodzhamukhamedov.

Turkmenistan and Afghanistan signed a memorandum of understanding for cooperation in the gas sector but no contract. Khodzhamukhamedov said negotiations were continuing with Afghanistan on the price of deliveries.