Oil and Gas Pipeline Watch

Iran skirts Total decision with pipeline

Iranian natural gas from the South Pars field may reach international markets through pipelines rather than carriers, officials said.

French energy firm Total said last week it pulled out of the South Pars field, the largest natural gas field in the world, because of geopolitical tensions between the Islamic Republic and Western nations.

Iranian Deputy Oil Minister Akbar Torkan said in response that Iran may construct pipelines that extend throughout the country, allowing other countries to establish border links, Press TV said.

"We may export the (natural gas) produced in phases 11 and 13 of the South Pars gas field through pipelines to Europe," he said. "This would be more beneficial to Iran."

Egypt begins gas deliveries to Syria

Egypt began gas deliveries to Syria using the 745-mile Arab gas pipeline that eventually will reach several Middle Eastern and European markets.

Syrian Oil Minister Sufian Allaw said he expects to receive around 88 million cubic feet per day of Egyptian natural gas through the pipeline, with capacity expected to reach 212 million cubic feet per day by 2017, the Houston-based Oil and Gas Journal said.

Egypt in 2001 signed a $2.1 billion, 30-year deal with Jordan, Lebanon and Syria. Phase I of the project reached Jordanian markets in 2003, with final phases eventually linking the pipeline to the Deir Ali power station south of Damascus.

Egypt plans to extend the pipeline to Turkey and eventually create a hub to connect to the Nabucco pipeline to shuttle natural gas to Europe.

IPI Pipeline no risk for India

The Iran-Pakistan-India natural gas pipeline poses no threat to the national interests of India, party leaders said.

U.S. Rep. Gary Ackerman, D-N.Y., paid a visit to Indian officials last week, urging them to avoid signing any deals with the Iranians.

Samajwadi Party leader Amar Singh said, however, Indian Prime Minister Manmohan Singh viewed the pipeline as "very much required," the Iranian Press TV said.

"(The prime minister) said we cannot under any circumstances spoil our relations with Iran or other nations. Our relations with the United States have an important place, but traditional relations with other countries will not be compromised," he said.

Singh added there would be "no compromise" on Indian national security or its sovereignty with any Iranian natural gas deal.

The 1,724-mile Iran-Pakistan-India pipeline will deliver natural gas from the Iranian South Pars field to Pakistan and India. China also has expressed interest in the project, which is scheduled for completion in 2012.

Dolphin short-lists three firms for UAE pipeline

Dolphin Energy in the United Arab Emirates chose three European firms for the construction contract for a natural gas pipeline to bypass the Strait of Hormuz.

Dolphin said in a statement it short-listed Consolidated Contractors International Co. of Greece, Italian oil and gas firm Saipem, and Stroytransgaz of Russia for the contract.

Dolphin noted it awarded a $200 million contract in December to the German Salzgitter Mannesmann International to begin manufacturing the coated line pipe for the project.

The scheduled completion of pipe lengths is set for 2009 with construction on the route to begin shortly thereafter.

Alaska to vote on TransCanada deal Wednesday

Alaskan House Speaker John Harris said he hopes to push a vote in the state Legislature on awarding a license to TransCanada Corp. for a gas pipeline.

TransCanada is pushing for the development of a natural gas pipeline to deliver as much as 4.5 billion cubic feet a day from Alaska's North Slope to markets in Canada.

Alaskan officials expressed concern over the availability of natural resources to the pipeline and whether the TransCanada deal would hurt rival projects offered by ConocoPhillips and BP, the Alaska Journal of Commerce said.

Alaskan House Majority Leader Ralph Samuels of Anchorage said in early June disputes over production of the Point Thomson field in the North Slope also could be one of the key factors determining the viability of the TransCanada deal.

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(e-mail: energy@upi.com)