India, Turkmenistan, Pakistan and Afghanistan have incorporated a new, joint company that will be used to commission the construction of the TAPI pipeline. The joint company will be owned in equal 25% shares by the four interested parties and will consult with the Asian Development Bank on the pipeline’s eventual development. The TAPI pipeline will funnel Turkmen natural gas to India, Pakistan and Afghanistan.
The pipeline, which has seen sporadic development and interest from varying sources for years, is in the final stages before construction can actually begin. Incorporation took place legally on the British Isle of Mann, a common locus for multinational company formation due to lenient tax laws. The pipeline will export 33 billion cubic meters of natural gas per year from Turkmenistan through Afghanistan, down to Pakistan and India. However, a consortium leader has yet to be selected and French oil major Total recently pulled out of the running to lead the project. It is still unknown how the consortium and the ADB will interact to select the consortium leader.
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