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Analysis: Oil and Gas Pipeline Watch

Armenia mulls extending Iran pipeline to Europe; Salzgitter wins $200M pipe contract; Iran: India still part of IPI project
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Published: Dec. 24, 2007 at 1:08 PM
By KRISHNADEV CALAMUR, UPI International Security Editor
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Armenia mulls extending Iran pipeline to Europe

Armenia is considering a proposal to extend a pipeline from Iran to Europe, Energy Minister Armen Movsisyan said Monday.

"If Iran and Europe reach an agreement on gas supplies and consider it possible to export gas via Armenia by the shortest and the most effective method, we'll naturally implement this project after assessing its environmental and economic aspects," he said.

The comments were reported by RIA Novosti.

Such a deal may be opposed by the United States and some European countries because of Iran's suspected nuclear weapons program. In October, Iranian President Mahmoud Ahmadinejad had said plans to extend the pipeline were promising.

"No one will prevent us from carrying this project through as it is advantageous for the country and its economy," Movsisyan said, according to RIA Novosti.

The more than $200 million, 111-mile pipeline would supply Iranian natural gas to Armenia. The first 24 miles went on stream in March. RIA Novosti said the second leg is being built.

Europe relies on Russia for the bulk of its natural gas supply and wants to reduce that dependence. Iran offers a steady supply, but global politics as well as Iranian stability may put that deal in doubt.


Salzgitter wins $200M pipe contract

Germany's No. 2 steelmaker, Salzgitter Mannesmann International GmbH, won a $200 million contract to build 120,000 tons of pipe for the 129-mile Taweelah to Fujairah Gas Pipeline across the United Arab Emirates.

A statement Sunday from Dolphin Energy Ltd., which awarded the contract, said delivery of the pipes will be complete by spring 2009.

The pipeline will link Dolphin's gas-receiving facilities at Taweelah to a power and water desalination plant at Qidfa.

Bids to design and construct the TFP are due by Jan. 31, 2008.


Iran: India still part of IPI project

Iran says India has not pulled out of the gas pipeline project from Iran to India via Pakistan and its absence at meetings is a result of a row with Pakistan over transit fees.

Iranian Oil Minister Gholamhossein Nozari said he had met with top Indian officials last week and they had expressed interest in continuing with the Iran-Pakistan-India pipeline project.

He also said that Iran and Pakistan had agreed to a contract on the supply of gas and a deal could be signed soon. He noted, however, that the board of Iran's National Iranian Oil Co. must first approve the deal.

The $7.4 billion, 1,700-mile pipeline would run from Iran to India via Pakistan and supply some 90 million cubic meters of Iranian gas to India and 60 million cubic meters to Pakistan every day. Talks have been stalled on that issue because of two factors: the price of Iranian gas and transit fees that India must pay to Pakistan.

The future of the IPI pipeline is uncertain, however, because of strong U.S. opposition to the deal. Washington fears international agreements with Iran will only embolden the country to acquire nuclear weapons. Funding may also be difficult because of the countries the pipeline would traverse. Washington has said it backs a pipeline that supplies Turkmen gas to South Asia.

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(e-mail: energy@upi.com)

Topics: Armen Movsisyan, Gholamhossein Nozari, Mahmoud Ahmadinejad
© 2007 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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