Editor in Chief: Moh. Reza Huwaida Friday, March 29th, 2024

Siemens Offers $2.5b Credit Facility for TAPI Pipeline

Siemens Offers $2.5b Credit Facility for TAPI Pipeline

PESHAWAR - An international engineering giant has offered a credit facility of $2.5 billion for the supply of compressors for an ambitious four-nation gas pipeline project involving Afghanistan.
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) Company, task with laying and operating the pipeline, would need to install nine compressors for transmitting gas.
Siemens has offered to provide the compressors against under the $2.5-billion supplier credit facility, a news report said. Remaining funds for the project will be generated through road shows in the United Arab Emirates (UAE) and Singapore.
According to The Express Tribune, Turkmenistan has agreed in principle to purchase the compressors from Siemens. Modalities of a deal with the firm were being finalised, the newspaper reported.
With Turkmenistan bearing 85% of the total pipeline cost of $10 billion, Afghanistan, Pakistan and India will pay 5% each. Of the 85% cost, Turkmenistan will contribute 51% on its own and arrange the rest from varying financiers.
An amount of $15 billion will be needed to develop the gas field in Turkmenistan, a project whose contract has been awarded to Japanese companies working on extracting gas against a service fee.
The Asian Development Bank (ADB) has hinted at providing $1 billion in financing while the Islamic Development Bank (IDB) has offered a loan of $500 million for the pipeline. (Pajhwok)