Oil and Gas Pipeline Watch

Pakistani pushes Iran on Peace Pipeline

The Pakistani government called on Iran to sign on to the $7.2 billion Iran-Pakistan-India gas pipeline, the Pakistani ambassador to Iran said.

Ambassador Shafkat Saeed's comments came during a meeting with the Iranian Deputy Oil Minister Ali Kordan. Kordan addressed Pakistan's concern, noting the project is a top priority for Tehran, the Iranian Press TV said.

Construction on the 1,724-mile Iran-Pakistan-India gas pipeline, known also as the Peace Pipeline, is slated to launch in 2009 with a 2012 target date for completion.

Meanwhile, Pakistani Foreign Minister Makhdoom Shah Mahmood Qureshi told India that if it continued to "drag its feet" on signing onto the deal, Pakistan would go ahead and sign on with Tehran on its own.

"We cannot wait any more," Qureshi said. "We are happy to limit the pipeline to Pakistan, that is do an IP, or Iran-Pakistan, pipeline."

Chinese officials have expressed interest in signing onto the project as well.

Shell moves on Samsun-Ceyhan project

Royal Dutch Shell announced it would become a partner by June on the Samsun-Ceyhan oil pipeline project transporting oil from Kazakhstan though Turkey.

Turkey's Calik Enerji and Italy's Eni formed a 50/50 joint venture called the Trans-Anatolian Pipeline Co. to build and operate the $1.5 billion Samsun-Ceyhan project.

Shell and Eni already partner in a pipeline consortium in Kazakhstan, though it was unclear which shares Shell would assume in the Samsun-Ceyhan partnership, Today's Zaman reported.

The 345-mile project, which began in April 2007, runs north to south across Turkey, and officials predict the output will approach 1.5 million barrels per day by 2010.

Analysts say the project is strategically important to Turkey to reduce freight traffic in the Bosporus Strait and secure Turkey's position as a regional energy hub.

The project is also a move away from Russian energy dependence, though Russian officials are countering the move with interest in the Burgas-Alexandroupolis pipeline that will ferry Russian energy resources to the Aegean Sea through Bulgaria and Greece.

EU warns of Nord Stream environmental impact

A report from the European Parliament called for further authority over and additional environmental studies into the planned Nord Stream pipeline in the Baltic Sea.

European ministers said in a Petitions Committee report that while Nord Stream is "a project of European interest" it would "use every legal means at their disposal to prevent the construction" should it prove to pose a significant environmental risk.

The report warns the construction phase of the project, which will carry natural gas supplies from Russia to Germany, poses a "serious threat to biodiversity" in the Baltic region and said Nord Stream AG, the consortium overseeing the project, should compensate for any environmental damage, the European Parliament said in a statement.

The report further warns of disturbing more than 80,000 tons of munitions on the Baltic seabed from World War II and called for a "truly independent environmental impact assessment" of the pipeline.

The committee also said that given the serious potential for environmental damage, alternative overland routes should be examined.

Finally, European ministers called on the commission to block Russian energy giant Gazprom, which holds the majority stake in Nord Stream AG, from "assuming a dominant role on the EU gas markets without guaranteeing reciprocal rights for EU companies to enter the Russian energy market."

Alaska backs TransCanada deal

A report by the Alaskan government says a $500 million project involving the Canadian energy firm TransCanada Corp. is the best option to explore Alaskan natural resources.

Alaska released its full analysis and recommendations on the project May 22. Alaska Gov. Sarah Palin announced in May she would back the $26 billion TransCanada project, the Anchorage Daily News said.

The 1,715-mile proposed pipeline would run from the Alaska North Slope to Alberta, Canada.

The final report says awarding the license to TransCanada "will maximize benefits to Alaskans" because of the potential for long-term job growth, increased state revenue and affordable domestic gas supplies.

The deal "provides Alaska with its best opportunity for a successful (liquefied natural gas) project," the report says.

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