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Analysis: Oil and Gas Pipeline Watch

By BEN LANDO, UPI Energy Editor   |   March 24, 2008 at 7:37 PM
India ready for gas pipeline talks with Iran and Pakistan's new government

India's oil minister said negotiations will restart over the Iran-Pakistan-India pipeline that was derailed by disputes over transit fees between Islamabad and New Delhi.

"We expect to settle this issue in the two rounds of negotiations," Petroleum and Natural Gas Minister Murli Deora said, The Hindu reports. "We are hopeful of reaching an agreement with the Pakistan government."

The so-called Peace Pipeline would cost $7.5 billion. Natural gas from Iran -- the world's second-largest holder of reserves -- would be sent to Pakistan and on to India by 2011, according to plans.

Pakistan and Iran have reached agreement on nearly all outstanding issues and are moving forward.


Iraq issues tender for dual Iraq-Iran pipelines

Iraq's Oil Ministry has given companies until April 24 to bid for "detail design, supply of equipment and materials for Iraqi-Iranian crude oil and product pipelines project."

The pipelines would cross the Shatt al-Arab waterway -- one sending Iraqi crude to an Iranian refinery, the other sending products refined by Iran back to Iraq.

"The project includes scraper traps, valve stations for the pipelines, nine tanks of different capacities, metering stations, receiving station, loading system, all necessary utilities required such as control, telecommunication, electrical, pipeline intruder, fire detection and protection," according to the tender announcement on the ministry's Web site.

The physical pipelines itself are not part of the bid.

The ministry also announced a tender for development of the Akkas gas field in western Iraq. The field would be shipped via pipeline to Syria and also feed into the Arab gas pipeline. This would direct gas to Turkey for domestic consumption, as well as feed for a pipeline to Europe.


Environmentalists, Oregon city oppose proposed pipeline

The government of Forrest Grove, Ore., has come out against the pipeline, which would import Russian, Indonesian, Australian and Middle Eastern liquefied natural gas and send it 210 miles.

Palomar Gas Transmission said in a report filed with the Federal Energy Regulatory Commission its pipeline would trace a path through 73 miles of forest and across 50 rivers and other bodies of water, The Oregonian reports.

Environmentalists point to this -- a 120-foot wide clearing through 3,124 acres during construction -- in opposition.

"It's taking public assets and turning them into private profits," said Bill Barton, Native Forest Council field operations director. "We should stop this. If citizens don't wake up, our resources will be gone."

Palomar says the project would employ 1,000 workers during construction, feed $75 million into the economy and $8 million in taxes, and reclaim much of the land destroyed during construction.


Rwanda, Uganda sign MoU for fuel pipeline

The governments of Rwanda and Uganda, as well as the firm Tamoil Africa, have signed a memorandum of understanding for a feasibility study and construction of a crude products pipeline.

It would be an extension of a line from Kenya to Uganda, which is also a Tamoil project and is to start in May.

Tamoil would be eligible for incentives from both countries for the Kampala to Kigali line, The New Times reports. A final deal would be signed in August.

A price tag was not detailed.

The Kenya to Uganda pipeline is $110 million. Further extensions would take the fuel to Burundi, the Tripoli Post reports. Currently fuel traverses the violence-prone region via truck, increasing the prices and risking shipments.


Indian government reviewing proposed Kashmir gas line MoU

India's Law Department is reviewing a memorandum of understanding between the state of Jammu & Kashmir and the Gas Authority of India Ltd.

Greater Kashmir reports a final version of the MoU has been given to the government.

The pipeline network would connect eight districts in the state.

GAIL's proposal would see a monthly meeting of a nine-member coordinating committee to oversee development and timeframe for the project.

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(e-mail: energy@upi.com)

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