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Perspectives Of Iran Gas - South Pars As Global Energy Factor

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  • Perspectives Of Iran Gas - South Pars As Global Energy Factor

    PERSPECTIVES OF IRAN GAS - SOUTH PARS AS GLOBAL ENERGY FACTOR

    Regnum, Russia
    March 29 2006

    Perspectives of Iran gas extraction and transit, in particular,
    current stage of realization of the Southern Pars project, as well
    as international and regional political and economic tendencies,
    connected with it, were presented by Deputy Director of Noravank
    Scientific-Educational Fund Sevak Sarukhanyan on March 28 in Yerevan.

    As a REGNUM correspondent informs, several Armenian experts and
    analysts were present at the event.

    According to Sarukhanyan, by the end of 2004, proven gas reserves
    totaled 7.1 trillion of cubic meters in South and Central America,
    7.32 trillion m³ - in North America, 14.06 trillion m³ - in Africa,
    14.21 trl m³ - in Asian-Pacific region, 64.02 trl m³ - in Europe
    and Eurasia, and finally 72.83 trl m³ - in Middle East. At the same
    time, 28.5%, 15.2%, and 14.1% of world energy balance correspondingly
    fall on Russia, Iran, and Qatar. Accordingly, parts of Russia, Iran,
    and Qatar in world gas export vary near 34%, 1%, and 1%.

    Meanwhile, as Sarukhanyan stressed, gas usage will triple in the EU
    by 2020. According to the expert, such drastic rise of the fuel's
    consumption will be accompanied by sharp reducing of gas extraction
    in Norway, and little by little strengthening of the Russian monopoly
    concerning Turkmen and Uzbek gas transit to Europe. According to
    Sarukhanyan, increasing of Russian gas supply to Europe will be
    accompanied by diversification of its transit routes. During the
    next 15-20 years, big part of Russian gas will be supplied to Europe
    through three main routs: 120-150 billion m³ - through Ukraine, 50-70
    billion m³ - through the North-European pipeline, 50-70 billion m³ -
    through Norwegian pipeline system, taking into consideration decreasing
    of gas production in Norway. In context of signing Russian-Chinese
    agreements, Russia will, according to the expert, direct considerable
    part of the Russian gas from Siberia to China.

    "Even, if to take into consideration possible increase of Russian gas
    to EU, European 'negative' gas balance will reach 150 billion m³ by
    2025," believes the Armenian expert.

    According to his prognosis, solving problem of missing gas, Europe
    has chosen Iranian South Pars project. It is known as world biggest
    natural gas deposit, which may be connected with Europe by pipeline.

    According to Sarukhanyan, South Pars contains huge gas reserves of
    best quality, which are still uncontrolled by USA, Russia, and China.

    According to the presentation's information, 8 South Pars' sections
    are completely ready; every one produces 25 million m³ per day.

    Annual production at these 8 sections totals 73 billion m³.

    Mentioning rival projects of Iranian gas export, the Deputy Director
    of Noravank Fund conditionally named them the 'West' and the 'East'
    ones. West Project is route Iran-Turkey (South Caucasus)-Europe, East
    Project - Iran-Pakistan-India. Actually, according to Sarukhanyan,
    Pakistan and India together pretend to 40 billion m³ of Iranian gas,
    and Europe - to 150 billion m³. "Politicization of the question is
    caused by fact that behind Iran and Pakistan stands threatening shadow
    of Chinese People's Republic, which is pretending to the lion's share
    of Iranian gas by 2020. The USA is worried by Chinese strategy of
    energy import, based on two fundamental principles: seller of oil
    and gas guaranties stability of supplies, and buyer (i.e. China)
    guarantees their security at whole route. It naturally strengthens
    military-economically China and Shanghai Organization of Cooperation
    in regions of supply and transit", stated the expert.

    What does Iran want, asked he himself? According to Sarukhanyan,
    basically Iran prefers European market, because EU countries are
    ready to buy gas at European prices. As for Pakistan and India, they
    suggested Iranian side making long-term agreement on gas supply
    at fixes prices, which basically does not satisfy Iran. At the
    same time, Iran skillfully uses the East Project in order to have
    additional arguments in his European policy, as well as in talks on
    nuclear problems. From other point, characterizing US position on
    the question, Sarukhanyan stressed, energy strategies of US and EU
    fundamentally differ. It was obviously demonstrated by the American
    way of Iranian problem's solution. "It is more favorable for the USA,
    when Europe consumes Russian gas, but not Iranian one. From the other
    side, US general aim is not to allow Iranian gas to get into China.

    American-Indian agreement on construction nuclear reactors, aimed
    at decreasing India's energy needs, may be connected with the fact",
    stated he.

    Mentioning perspectives of Iran-Armenia-Georgia-Ukraine-Europe route,
    Sarukhanyan pointed out, construction of new pipeline in Ukrainian
    territory would be very expensive. It will take from $35 billion up
    to $40 billion, because 90% of existing infrastructure are used for
    transit of the Russian gas. Hypothetical transit incomes of Armenia and
    Turkey, for transition of Iranian gas, may approximately total $160
    million for Armenia (in case of transit of 50 billion m³ annually),
    and for Turkey up to $4 billion (in case of transit of 150 billion
    m³ annually), according to the expert.

    --Boundary_(ID_qJRhl6Z8KysmKNlec5TWZw)--

    From: Emil Lazarian | Ararat NewsPress
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