The Islamic Development Bank is allocating $700 million to the construction of the pipeline in Turkmenistan, signed as part of an agreement signed with the Turkmenistan government in October 2016. On 24 April 2008, Pakistan, India and Afghanistan signed a framework agreement for the purchase of natural gas in Turkmenistan.  The Intergovernmental Agreement on the Pipeline was signed in Ashgabat on 11 December 2010.  However, in April 2012, India and Afghanistan failed to agree on the transit tax for gas transiting through Afghan territory. As a result, Islamabad and New Delhi were unable to agree on the transit tax for the segment of the pipeline that runs through Pakistan, which has linked its tariff structure to an agreement between India and Afghanistan.  On 16 May 2012, the Afghan Parliament approved the agreement on a gas pipeline and the following day, the Indian cabinet authorized the state-owned gas company GAIL to sign the gas purchase contract (GSPA) with Turkmenistan`s national oil company, Turkmenistan`s national oil company, Turkmengaz.  Since the pipeline was to cross Afghanistan, it was necessary to cooperate with the Taliban. The U.S. Ambassador to Pakistan, Robert Oakley, moved to CentGas in 1997. In January 1998, the Taliban, which chose CentGas against Argentine competitor Bridas Corporation, signed an agreement to continue the proposed project. In June 1998, Russian Gazprom abandoned its 10% stake in the project. On 7 August 1998, the US embassies in Nairobi and Dar es Salaam were bombed.
The United States claimed that Osama bin Laden was behind the attacks, and all negotiations on the pipelines were halted when the Taliban leader at the time, Mullah Omar, announced that bin Laden had the support of the Taliban. Unocal withdrew from the consortium on 8 December 1998 and quickly closed its offices in Afghanistan and Pakistan.  The investment agreement for the development of the TAPI project was signed by the four countries in February 2016. The Afghan government has signed several important agreements including the intergovernmental agreement, the TAPI legislative agreement, the shareholder agreement, the gas-purchase and purchase agreement, the investment agreement, the operational agreement and the agreement of the heads of state and government, without the first steps in the implementation of the project being unthinkable. Meanwhile, the heads of state and government of the Host Government Agreement and the Host Government Agreement are about to sign. Other important agreements such as Gas Transport Agreement, Gas Pipeline System Rules in the pipeline, Security Protocol, Land Services Agreement and Land Rights Agreement are expected to be concluded shortly.