"The cabinet has approved petroleum ministry's proposal for joining the TAP project," an official said here on Thursday night.

India had in mid-February participated for the first time as an 'observer' in the 9th meeting of the steering committee of the TAP project and has since decided to join the project which will now be renamed TAPI (Turkmenistan-Afghanistan-Pakistan-India pipeline), he said.

Besides the fact that Iran was bargaining for a very high price for the gas it wants to sell to India through Iran-Pakistan-India pipeline and in its liquid form (LNG), the pipeline from Turkmenistan would be easier to implement than IPI line as it already has the backing of the Asian Development Bank (ADB).

Iran's controversial nuclear programme and Washington's strong reservations have clearly cast a shadow on the future of the proposed eight billion dollar Iran-Pakistan-India (IPI) pipeline.

Moreover, unlike IPI, the TAPI project does not run the risk of being blacklisted for participation by US and European financiers and companies.

The US has been encouraging Pakistan to abandon the IPI project and consider TAP for meeting its gas needs.

The proposed natural gas pipeline would stretch from the Turkmenistan/Afghanistan border in south-eastern Turkmenistan to Multan, Pakistan (1,271km), with a 640km extension to India.

The estimated cost of the project is 2.9 billion dollars for the segment to Pakistan and an additional 600 million dollars for the extension to India.

"With a view to meeting the burgeoning gas demand, it is estimated that substantial volumes of gas would need to be imported. Joining the TAP project offers the possibility of an alternative source of gas supply to India," said the petroleum ministry proposal without referring to Iran.

Participation in TAP would give New Delhi leverage with Iran on the IPI project, the official said, adding that in mid-February the Steering Committee had given India three months to submit a formal request.

India needs around 150 million standard cubic metres (mscm) of gas per day while its current availability, including LNG imports, is 92 mscm daily. This demand is estimated to jump to 313 mscm per day by 2011-12. Of the TAPI gas, India is willing to lift 70 mscm daily, the same volume that it tabled during talks with Iran.