These three energy pipelines could shake up geopolitics

Steve Le Vine        QUARTZ

Three of the most volatile parts of the Middle East—Iran, Iraq and Israel—are the scene of oil and gas initiatives that could shake up geopolitics there and beyond. The efforts center on three energy pipelines, at least two of which seem likely to be built.

The first is an attempt by Iran to supply Pakistan with natural gas. On March 11, Pakistani President Asif Zardari and Iranian President Mahmoud Ahmadinejad inaugurated the construction of a new section of a proposed 1,200-mile pipeline connecting the two countries. Iran claims its own section of the line is almost finished, starting from the giant South Pars natural gas field—the world’s largest—and going to the border with Pakistan. The ceremony marked the start of construction of the 485-mile Pakistani leg. Iran is offering $500 million in finance toward the estimated $1.5 billion cost of the Pakistan portion, according to the Pakistanis.

If the pipeline is successful—the longest shot of the three considering Western-led sanctions against Iran—it will provide an economic jolt for gas-starved Pakistan. If the line is extended to India, it could also help to soften India-Pakistani friction, the underlying cause of South Asian instability. It also would create a new economic belt stretching from the Middle East to the depths of the subcontinent.

Iraq and Iran’s Oil Pipeline Politics

Iran-Pakistan gas pipeline Ceremony 11 March 2013. (Photo: Mian Khursheed)

 Elie Chalhoub    Al Akhbar English

Away from the region’s headlines and wars, plans are being methodically put in place that could redraw the strategic map of the Middle East, erasing one of the region’s key colonial-era features.

Recent moves by Iran and Iraq to press ahead with the construction of a series of new oil and gas export pipelines could be attributed to Iran’s bid to counter international sanctions. The planned pipelines could also reflect Iraq’s economic recovery or perhaps pressure from oil companies for new export routes.

There may be some truth to these explanations. But a closer look makes clear that these schemes are related.

The short-term aims are evident. They include trying to lure Jordan into the region’s “resistance” axis and reducing American influence on Iran’s eastern neighbor Pakistan.

But the long-term objective is more ambitious: to connect the Middle East by way of a web of economic ties that binds them into a regional partnership whose mainstays are Iran and Iraq.

Baghdad is making it increasingly clear where it stands in terms of its regional alignment. In recent months, it has openly supported Syrian President Bashar al-Assad’s regime in Damascus, clashed with Ankara, reached out to Cairo, and been at odds with Riyadh and Doha.

Turkey-Israel gas pipeline deal ?

Turkish companies and western multinationals operating there are expressing an interest in purchasing gas from Israel’s Leviathan gas field, media outlets in both countries are reporting.

“The Turks are interested in buying Israeli gas, they refuse to buy Cypriot gas, but any pipeline from Israel to Turkey would run through Cyprus's exclusive economic zone,” Israel’s Haaretz reported.

An Israeli-Turkish undersea pipeline would be 600km long and cost an estimated $2 billion, the paper said.

Other reports said that, in addition to the Leviathan partners - Noble, the Delek Group and Ratio Oil Exploration - the Israeli Prime Minister's Office, Ministry of Foreign Affairs, and the Ministry of Energy and Water Resources have been informed about the contacts.

Turkish conglomerate Zorlu Group is said to be lobbying Israel to approve energy exports to Turkey.

Zorlu's reported plan is to lay an undersea pipeline from the Leviathan field 130km off Haifa to Turkey's south coast.

The conglomerate has interests in textiles, communications, energy and real estate, and is considered one of Turkey's biggest consumers of natural gas. In Israel, it owns a 25 per cent stake in Dorad Energy, which is developing a private power plant in Ashkelon.

Turkish-Azeri Gas transit deal may ease caspian supply to Europe

Bloomberg 

Turkey and Azerbaijan will sign a deal for the transit for gas from the Shah Deniz-2 Caspian Sea deposit “shortly,” according to an Azeri official, boosting European plans to diversify supplies away from Russia.

“Everything will be signed very shortly, in several weeks,” Elshad Nassirov, vice president for marketing and investment at the State Oil Co. of Azerbaijan, or Socar, said in an interview in the Azeri capital Baku late Thursday.

All major issues, such as the price and volume of gas to be sold to Turkey from Shah Deniz-2, as well as tariffs for the transportation of fuel through the existing and future pipelines in Turkey have been agreed upon, Nassirov said, without providing details.

The European Union is looking to the Caspian, including Azerbaijan and Turkmenistan, to diversify supply, offset dwindling production and reduce dependence on Russia. Pipeline projects in the bloc’s so-called southern corridor, including OMV-led Nabucco, are seeking supply from Shah Deniz, one of the world’s biggest deposits, as is Russia’s Gazprom.

One more gas pipeline to be built for Shah Deniz gas transportation

 

Rufat ABBASOV     News.Az

 

There is a plan to lay an additional pipeline on par with existing South Caucasus gas corridor. 

 

Existing or new infrastructure will be used to transport Azerbaijani gas produced within the framework of Stage 2 of the Shah Deniz field development, according to the report of BP-Azerbaijan for 2010.

The report says the company is currently evaluating all existing variants and defining the route meeting all demands of the concerned parties. “A negotiation export group from among the representatives of BP, SOCAR, Statoil and Total was created to negotiate with Turkish and European gas consumers”, the report says.

Earlier, the president of BP-Azerbaijan Rashid Javanshir said there is a need to expand existing transport infrastructure to ensure export of gas within the framework of the second phase of the Shah Deniz field development.