The four state gas firms of Turkmenistan, Afghanistan, Pakistan, and India have set up a company to construct, own and operate the planned 1,800km natural gas pipeline, which is expected to cost $7.6bn.
Turkmengas, Afghan Gas Enterprise, Inter State Gas Systems (Private), and GAIL (India) will each have equal shares in the company.
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline will run across the four nations.
The project will export around 33 billion cubic metres of natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India over 30 years.
The pipeline will enable Turkmenistan to expand its gas export markets to the southeast.
In November 2013, Asian Development Bank (ADB) was appointed the transaction advisor for the TAPI project.
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By GlobalDataThe bank advised on the establishment of the company for the construction and operation of the pipeline.
ADB Central and West Asia department director general Klaus Gerhaeusser said: "Establishment of the TAPI pipeline company is a key milestone in the development of the pipeline.
"It is a tangible sign of transformational cooperation among the parties that presages the enhanced energy security, business prospects, and overall peace and stability in the region promised by the pipeline."
The original project started in March 1995 with an inaugural memorandum of understanding between the governments of Turkmenistan and Pakistan.
