By Muhammad Mudassar ISLAMABAD, March 22 (INP-WealthPK): The Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline will ease access to natural gas for Pakistan. The natural gas resources of Pakistan are diminishing rapidly. According to the Petroleum Division statistics, gas production is decreasing by at least 6% annually. [caption id="attachment_65104" align="aligncenter" width="696"] Turkmenistan-Afghanistan-Pakistan-India (TAPI)[/caption] Gas is consumed by many sectors in Pakistan. The major consumers of gas (natural gas and LNG) are the power, industrial, and household sectors. The industries consume the imported LNG, households only 28% natural gas and the rest of consumers use the expensive LPG. All sectors face gas shortages during the winter season due to a hike in demand that causes losses. According to the All-Pakistan Textile Mills Association (APTMA), Pakistan lost $250 million worth of exports in December 2021 due to gas shortage. Through the TAPI pipeline, Pakistan will get 1.35 billion cubic feet gas per day (bcfd). The Asian Development Bank recently refused to further work on the TAPI project due to delay in the official recognition of Afghanistan by the UN and major global economies. After the ADB’s refusal, Pakistan and Turkmenistan declared in a joint statement that the work on the project will be started soon. The Afghan government also supports the project and Mullah Muhammad Yaqub, the acting defense minister, has confirmed that he has taken direct responsibility for the project. According to Special Assistant to the Prime Minister (SAPM) on Power and Petroleum Tabish Gauhar, the gas pipeline is expected to be operational in Kandahar, Afghanistan by 2026. The 1,800km gas pipeline has the capacity to supply 33 billion cubic meters of natural gas per annum. The estimated cost is $8 billion. This project is divided into two phases. The first phase is the free flow phase, which is estimated to cost $5-6 billion. The second phase, which involves installation of compressor stations, is estimated to cost $1.9-2 billion. In terms of transit fees, Pakistan and Afghanistan will get the benefit. This project will also contribute significantly towards tackling the challenge of climate change, as compared with other sources of energy, natural gas produces cheap and environment-friendly electricity. Foreign Minister Shah Mehmood Qureshi recently said TAPI project was beneficial for the entire region and Afghanistan alone would get $1 billion in transit fee and royalty after completion of the project. Though a strong commitment from Pakistan and Turkmenistan to implementing the project is in place, security and financial concerns still cloud the project. Project operator Türkmengaz, holding an 85% stake in the project, has been finding it rather difficult to secure financing. So far, it has managed to attract only $700 million from the Islamic Development Bank, while the other three participating states have committed just 5% (corresponding to their share in the consortium) or $500 million each to the project.