The Saudi Fund for Development (SFD) will allocate funds to finance the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.
President of Turkmenistan Gurbanguly Berdimuhamedov signed the relevant decree on Thursday in order to implement the "Program for the development of the oil and gas industry of Turkmenistan for the period until 2030" and to attract investment in the TAPI gas pipeline project.
According to the document, the State Bank for Foreign Economic Affairs of Turkmenistan, on behalf of the Government of Turkmenistan, the recipient of the loan, is allowed to conclude a Financial Agreement with the SFD to finance the Turkmenistan-Afghanistan-Pakistan-India gas pipeline project, as well as carry out operations related to the implementation of the agreement.
During the 5th meeting of the Turkmen-Saudi intergovernmental commission on trade and economic cooperation in November 2017, the SFD expressed support for the TAPI gas pipeline project initiated by Ashgabat. Back in late November, the State Bank for Foreign Economic Affairs signed a financial agreement with the Saudi Development Fund to finance the purchase of pipes for the TAPI pipeline.
After completion, the 1840-kilometer TAPI gas pipeline will be able to annually deliver 33 billion cubic meters of Turkmen natural gas to South Asian countries.