Struggling to get global energy majors who can build the USD 9 billion TAPI gas pipeline, its four promoter nations have decided to float a special purpose vehicle to keep the transnational project alive. The SPV, TAPI Ltd, will be formed with Turkmenistan, Afghanistan, Pakistan and India pumping in $5 million equity each. India will be represented by state-owned GAIL India Ltd. The proposal for formation of the Dubai-based SPV and GAIL being the Indian nominee is listed for consideration of the Union Cabinet for its meeting slated for tomorrow, official sources were quoted as saying. The issue however may not be taken up as Oil Minister M Veerappa Moily is in the US on a 10-day visit. The SPV is being considered for the project as no multinational company is willing to participate in the project unless they get a share in Turkmenistan’s rich gas fields. While Turkmenistan, Afghanistan and Pakistan are of the view that the four promoters could build and operate the pipeline on their own, India has insisted that the project be taken up only if a multinational company leads it. New Delhi does not want to be at the mercy of Afghanistan and Pakistan for its gas needs and also feels that none of the nominee companies of the four countries have the financial and managerial capability to execute the project. Sources said TAPI Ltd would scout for a consortium leader who will build and operate the project, while the US government would pursue Turkmenistan to get upstream equity for its multinational.
