US Client State Georgia to Develop Gas Pipeline to Iran, Other US Allies Do the Same
Even as Georgia steps up its anti-Russian activities with the help of the other US client states in the resurrected GUUAM (Georgia/Ukraine/Uzbekistan/Azerbaijan/Moldova, but the Uzbeks bailed in 2002 ), the Saakashvili government plans to embark on energy projects that would hardly seem acceptable to Washington - because they involve that 'axis of evil' charter member, Iran.
Six memoranda of understanding on future economic cooperation were the result of Monday's meeting in Tbilisi between Iranian First Vice President Mohammad-Reza Aref and Georgian Prime Minister Zorab Nogaideli, according to Iranian media.
"...Among the issues we discussed at our fourth session I can refer to transfer of Iran's oil, natural gas and electricity to Georgia," stated Georgia's Economy and Finance Minister Jula Shevid at the meeting. According to the report, it was also agreed that Iran will build Georgia a new power generator station.
Civil Georgia quoted PM Nogaideli as saying "...the Iranian government is ready to allocate USD 2.5 million to Georgia for the rehabilitation of the Iran-Azerbaijan-Georgia gas pipeline."
Iranian Vice-President Mohammad Reza Aref confirmed that Iran is interested in the export of gas to Georgia. “If Georgia considers Iranian gas very expensive, I will personally try to revise the tariff,” he added.
According to the Iranian government, with reserves of 27.5 trillion cubic meters of gas, Iran is "...the second major gas rich country and fourth major gas producer in the world." The article contains detailed information about the development of Iran's enormous South Pars gas field in southern Assalouyeh port in Bushehr province, which contains 8 percent of the world's gas reserves.
It's not just Georgia who is jumping on the Iranian gas bandwagon. The US looked on with consternation last week as Pakistani President Pervez Musharaff, who has recently signaled a chance for warmer relations with India, said that his country was enthusastic about the planned 2,600-kilometre gas pipeline connecting Iran and India, which will involve 760 kilometers of transit through Pakistan on the way. Four days earlier, the Chinese also expressed their desire to become part of the project.
"...New Delhi is likely to open dialogue on transit issues with Islamabad next month," reported Italy's AKI on April 18th. "Pakistan is also hoping to use the same pipeline for importing gas from Iran for its own purposes and is also hoping to earn millions of dollars in transit fees for allowing the pipeline to be on its soil in its passage to India."
The US has called on India and Pakistan to shun the Iranians, and instead build a pipeline from gas-rich Turkmenistan. However, Musharraf summed it up bluntly when he said that "...the whole world was buying oil from Iran and entering into agreements with it on petroleum products." Tough luck for Uncle Sam.
Another American ally, Turkey, is Iran's biggest consumer of natural gas, and has signed a contract in 2001 that stipulates at least 25 years more of gas deliveries.
Turkey, however, has bigger plans, and would like to export surplus gas to the West, either through southern Mediterranean ports or through the Balkans. Several majors which would like to create new pipelines in Balkan/Central Europe are all agreed that new pipelines traversing Turkish soil, and any increase in gas transit, is a good thing - no matter where it may come from. Further, there is a school of thought that insists Western companies should try to avoid dependence on Russia, the world's current top gas producer, because of concerns over long-term supply.
At the end of the day, business is business. Oil and gas companies want to get the most efficient, most cost-effective pipeline they can - no matter whether it comes from Russia, Iran or anywhere else. But for the American administration, political games come before free enterprise.
Six memoranda of understanding on future economic cooperation were the result of Monday's meeting in Tbilisi between Iranian First Vice President Mohammad-Reza Aref and Georgian Prime Minister Zorab Nogaideli, according to Iranian media.
"...Among the issues we discussed at our fourth session I can refer to transfer of Iran's oil, natural gas and electricity to Georgia," stated Georgia's Economy and Finance Minister Jula Shevid at the meeting. According to the report, it was also agreed that Iran will build Georgia a new power generator station.
Civil Georgia quoted PM Nogaideli as saying "...the Iranian government is ready to allocate USD 2.5 million to Georgia for the rehabilitation of the Iran-Azerbaijan-Georgia gas pipeline."
Iranian Vice-President Mohammad Reza Aref confirmed that Iran is interested in the export of gas to Georgia. “If Georgia considers Iranian gas very expensive, I will personally try to revise the tariff,” he added.
According to the Iranian government, with reserves of 27.5 trillion cubic meters of gas, Iran is "...the second major gas rich country and fourth major gas producer in the world." The article contains detailed information about the development of Iran's enormous South Pars gas field in southern Assalouyeh port in Bushehr province, which contains 8 percent of the world's gas reserves.
It's not just Georgia who is jumping on the Iranian gas bandwagon. The US looked on with consternation last week as Pakistani President Pervez Musharaff, who has recently signaled a chance for warmer relations with India, said that his country was enthusastic about the planned 2,600-kilometre gas pipeline connecting Iran and India, which will involve 760 kilometers of transit through Pakistan on the way. Four days earlier, the Chinese also expressed their desire to become part of the project.
"...New Delhi is likely to open dialogue on transit issues with Islamabad next month," reported Italy's AKI on April 18th. "Pakistan is also hoping to use the same pipeline for importing gas from Iran for its own purposes and is also hoping to earn millions of dollars in transit fees for allowing the pipeline to be on its soil in its passage to India."
The US has called on India and Pakistan to shun the Iranians, and instead build a pipeline from gas-rich Turkmenistan. However, Musharraf summed it up bluntly when he said that "...the whole world was buying oil from Iran and entering into agreements with it on petroleum products." Tough luck for Uncle Sam.
Another American ally, Turkey, is Iran's biggest consumer of natural gas, and has signed a contract in 2001 that stipulates at least 25 years more of gas deliveries.
Turkey, however, has bigger plans, and would like to export surplus gas to the West, either through southern Mediterranean ports or through the Balkans. Several majors which would like to create new pipelines in Balkan/Central Europe are all agreed that new pipelines traversing Turkish soil, and any increase in gas transit, is a good thing - no matter where it may come from. Further, there is a school of thought that insists Western companies should try to avoid dependence on Russia, the world's current top gas producer, because of concerns over long-term supply.
At the end of the day, business is business. Oil and gas companies want to get the most efficient, most cost-effective pipeline they can - no matter whether it comes from Russia, Iran or anywhere else. But for the American administration, political games come before free enterprise.
posted by EuroPipelines Editor at 4/26/2005 09:02:00 PM
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