Iran Starts Building Gas Pipeline to Syria

[A.Rafay]

Iran has started construction on a $10 billion natural gas pipeline to key ally Syria, a news agency reported Monday, in an apparent nod of support to President Bashar Assad's embattled regime and a further attempt by Tehran to boost energy exports battered by international sanctions.

The 1,500-kilometer (750-mile) project was first announced in July 2011 as Syrian rebels began stepping up the fight to topple Assad. Many analysts predicted the pipeline would remain in the planning stages because of the countless risks involved, but Iran's decision to start work — even just the beginning sections — is seen a public show of confidence in Assad's ability to ride out the uprising.

It also reflects Iran's wider efforts to expand natural gas and oil pipeline to Middle East and Asian markets as Western sanctions over Tehran's nuclear program cut into sales. The United States and its allies accuse Tehran of seeking to develop atomic weapons, an allegation the Iranians deny.

The semiofficial Fars news agency said Iran has already begun construction of the first phase of the project involving a 225-kilometer (140-mile) stretch at an estimated cost of $3 billion. The pipeline will carry gas from the giant South Pars field in the Persian Gulf to Syria via Iraq, whose government has close ties with Iran.

Fars said the entire project is to be completed in the second half of 2013.

Economist Saeed Leilaz, however, described it as more showmanship than a serious plan at this stage.

"Given the ongoing civil war in Syria, such a project can't be implemented now. Lack of security and political instability in Iraq and Syria doesn't allow this project to be enforced at least at this point," Leilaz said. "This is a symbolic gesture by Iran to show that it can bypass Western sanctions."

Iran already supplies gas to several other countries, including Armenia and Turkey, and has plans to build a pipeline to Pakistan. Iran has the world's second-largest natural gas reserves after Russia.

Iran Starts Building Gas Pipeline to Syria - ABC News

 

[Surenas]

U.S. brushes off Iran-Iraq-Syria gas line

WASHINGTON, Nov. 20 (UPI) -- The U.S. government said plans by Iran to build a natural gas pipeline through Iraq to Syria may run into problems with economic sanctions.

The semiofficial Fars News Agency in Iran reports that construction started on a natural gas pipeline through Iraq to Syria. The government said the project should be completed by June and requires about $3 billion in investments to support.

A preliminary agreement on what Fars said was a $10 billion pipeline deal was signed by Iraqi, Iranian and Syrian oil ministers last year in Iran's southern Bushehr province. Both downstream consumers are expected to take on Iranian gas from the South Pars offshore field to support electricity stations.

Victoria Nuland, a spokeswoman for the U.S. State Department, brushed off the report, saying Washington has seen similar reports on the Iran-Iraq-Syria pipeline "six or seven or 10 or 15 times before, and it never seems to materialize."

In August 2011, after the trilateral deal was signed, Tehran said international lenders were lining up to support the multimillion-dollar pipeline project.

Nuland said Iran was "bragging" about the pipeline with the latest report.

"I would simply say that the construction of any kind of an Iranian-Syrian pipeline could potentially raise sanctions issues under U.S. law on either Iran or Syria, including for international entities who might decide to participate in it either by financing or by construction," she said.

Iranian plans for natural gas pipeline downplayed by U.S. officials - UPI.com

 

[Abii]

Well as long as we build one to Iraq it's good enough. That's thankfully happening.

As long as the pipeline isn't extended to the sunni Western region of Iraq it should be safe. Iraq will def'n need Iranian gas in the coming years.

 

[Surenas]

Well as long as we build one to Iraq it's good enough. That's thankfully happening.

As long as the pipeline isn't extended to the sunni Western region of Iraq it should be safe. Iraq will def'n need Iranian gas in the coming years.

Many need our gas. Perhaps once our pipelines will reach the Mediterranean Sea.

 

[Abii]

Many need our gas. Perhaps once our pipelines will reach the Mediterranean Sea.

check out this chart
the potential is insane

The oil income will be a joke if they manage to develop the gas fields (which isn't happening at this point unfortunately). We can make multiple times more money from the gas compared to the oil.

 

[Surenas]

check out this chart
the potential is insane

The oil income will be a joke if they manage to develop the gas fields (which isn't happening at this point unfortunately). We can make multiple times more money from the gas compared to the oil.

That's true. The potential is enormous. But that also counts for our oil-exports. If we manage to get rid of the sanctions and modernize our oil industry, the profits would be huge! We were once the leading oil-exporting nation by selling 7 million oil barrels per day. Today we only sell approx. 1 million oil barrels per day. Imagine if we could both modernize our oil and gas fields, and get rid of the sanctions. Who would stop us in the Middle East in terms of economy?

 

[Abii]

That's true. The potential is enormous. But that also counts for our oil-exports. If we manage to get rid of the sanctions and modernize our oil industry, the profits would be huge! We were once the leading oil-exporting nation by selling 7 million oil barrels per day. Today we only sell approx. 1 million oil barrels per day. Imagine if we could both modernize our oil and gas fields, and get rid of the sanctions. Who would stop us in the Middle East in terms of economy?

yeah man, check out that chart. The dollar per barrel seems to be a low ball estimate from eons ago. They calculated the oil and gas prices before the hike. If we manage to get it up to the lvls seen in that chart and energy prices stay as they are then we'll be looking at 200-300 dollars per barrel (cumulative for both gas+oil). That's ******* nutz lol. We'd make the saudis look like beggars with those sales.

Unfortunately we're stuck with the regime for now.

 

[Surenas]

yeah man, check out that chart. The dollar per barrel seems to be a low ball estimate from eons ago. They calculated the oil and gas prices before the hike. If we manage to get it up to the lvls seen in that chart and energy prices stay as they are then we'll be looking at 200-300 dollars per barrel (cumulative for both gas+oil). That's ******* nutz lol. We'd make the saudis look like beggars with those sales.

Unfortunately we're stuck with the regime for now.

That's true. At least the positive thing is that the regime is only selling 1 million oil barrels per day, which means that we have enough left if they are gone! Can we do a quick math how much profit we would make if we sell 7 million oil barrels per day + future gas profits?

 

[tyrant]

Iraq will def'n need Iranian gas in the coming years.

Do you have any source for this?

 

[Surenas]

Do you have any source for this?

Iran to start supplying natural gas to Iraq by mid 2013 *|* Peak Oil News and Message Boards

 

[Abii]

That's true. At least the positive thing is that the regime is only selling 1 million oil barrels per day, which means that we have enough left if they are gone! Can we do a quick math how much profit we would make if we sell 7 million oil barrels per day + future gas profits?

We're never going to see those lvls of oil sales again b/c we're using 2-3 mln barrels a day at home. Right now production is at 4.and a bit (forgot what the bit is). We can increase it to 6-7 million barrels a day easily but we're gonna need modern Western tech. If we do work with Western companies then they're gonna take half of it as they're doing in Iraq right now. Say we produce 7 mb/day and export 4 of that. 4 mln times 90 dollars is 360 mln dollars. 360 days times 360 mln dollars=roughly 130 billion dollars <<< we would pocket all that if no Westerners are involved. Now a lot of the oil could be refined to other products and sold for even higher profits. 150-200 billion dollars isn't that unlikely for oil alone if we had the technology.

The gas side would be 2-3 times that if we use oil prices. I don't how gas prices work.

Man that's a lot of ******* cash. Wish we didn't have these ******* arabs in power right now.

 

[Surenas]

Price barrel oil today: approx. $109.
4 million x $109 = $436.000.000 (per day).
$436.000.000 x 365 =$159.140.000.000. (per year).

This would be our gross earnings. Of course we have to bear in mind the process costs, etc. But this is quite huge!

And we have still take in mind the gas profits!

 

[Abii]

Do you have any source for this?

The source is logic. Iraq is growing economically and after 30 years of nothing happening there the potential is huge and the growth will be fast. They're gonna be using their oil for export, electricity and fuel. They're gonna need natural gas for homes all over the country. Obviously they're not gonna have electric stoves and fireplaces like we have in North America. They're gonna use natural gas. As the country develops the demand is going to increase exponentially and they need to get gas from somewhere. We haven't even talked about demand by the industry.

If electricity was available and widespread then we could make an arguement against natural gas, but electricity in Iraq is in short supply and they're gonna be using a ton of oil for electricity production in the coming years.

Price barrel oil today: approx. $109.
4 million x $109 = $436.000.000 (per day).
$763.000.000 x 365 =$159.140.000.000. (per year).

This would be our gross earnings. Of course we have to bear in mind the process costs, etc. But this is quite huge!

And we have still take in mind the gas profits!

109 is for Brent Crude. I think OPEC countries use the WTI price (which is 89).

Whenever I google oil prices I see two diff prices, one is WTI and the other is Brent Crude. Don't know which is for OPEC countries.

 

[Surenas]

109 is for Brent Crude. I think OPEC countries use the WTI price (which is 89).

Whenever I google oil prices I see two diff prices, one is WTI and the other is Brent Crude. Don't know which is for OPEC countries.

I have no idea?

 

[SamranAli]

big markets for iranian gas, Pakistan, China, Indian, BD.