US Client State Georgia to Develop Gas Pipeline to Iran, Other US Allies
Do the Same
European Oil & Gas Pipeline
Tuesday, April 26, 2005
Even as Georgia steps up its anti-Russian activities
with the help of the other US client states in the
resurrected GUUAM (Georgia/Ukraine/Uzbekistan/Azerbaijan/Moldova, but
the Uzbeks bailed in 2002 ), the Saakashvili
government plans to embark on energy projects that
would hardly seem acceptable to Washington – because
they involve that ‘axis of evil’ charter member, Iran.
Six memoranda of understanding on future economic
cooperation were the result of Monday’s meeting in
Tbilisi between Iranian First Vice President
Mohammad-Reza Aref and Georgian Prime Minister Zorab
Nogaideli, according to Iranian media.
“… Among the issues we discussed at our fourth
session I can refer to transfer of Iran’s oil, natural
gas and electricity to Georgia,” stated Georgia’s
Economy and Finance Minister Jula Shevid at the
meeting. According to the report, it was also agreed
that Iran will build Georgia a new power generator station.
Civil Georgia quoted PM Nogaideli as saying “…the
Iranian government is ready to allocate USD 2.5
million to Georgia for the rehabilitation of the
Iran-Azerbaijan-Georgia gas pipeline.”
Iranian Vice-President Mohammad Reza Aref confirmed
that Iran is interested in the export of gas to
Georgia. `If Georgia considers Iranian gas very
expensive, I will personally try to revise the tariff,’ he added.
According to the Iranian government, with reserves of
27.5 trillion cubic meters of gas, Iran is “…the
second major gas rich country and fourth major gas
producer in the world.” The article contains detailed
information about the development of Iran’s enormous
South Pars gas field in southern Assalouyeh port in
Bushehr province, which contains 8 percent of the
world’s gas reserves.
It’s not just Georgia who is jumping on the Iranian
gas bandwagon. The US looked on with consternation
last week as Pakistani President Pervez Musharaff, who
has recently signaled a chance for warmer relations
with India, said that his country was enthusastic
about the planned 2,600-kilometre gas pipeline
connecting Iran and India, which will involve 760
kilometers of transit through Pakistan on the way.
Four days earlier, the Chinese also expressed their
desire to become part of the project.
“…New Delhi is likely to open dialogue on transit
issues with Islamabad next month,” reported Italy’s
AKI on April 18th. “Pakistan is also hoping to use the
same pipeline for importing gas from Iran for its own
purposes and is also hoping to earn millions of
dollars in transit fees for allowing the pipeline to
be on its soil in its passage to India.”
The US has called on India and Pakistan to shun the
Iranians, and instead build a pipeline from gas-rich
Turkmenistan. However, Musharraf summed it up bluntly
when he said that “…the whole world was buying oil
from Iran and entering into agreements with it on
petroleum products.” Tough luck for Uncle Sam.
Another American ally, Turkey, is Iran’s biggest
consumer of natural gas, and has signed a contract in
2001 that stipulates at least 25 years more of gas
deliveries.
Turkey, however, has bigger plans, and would like to
export surplus gas to the West, either through
southern Mediterranean ports or through the Balkans.
Several majors which would like to create new
pipelines in Balkan/Central Europe are all agreed that
new pipelines traversing Turkish soil, and any
increase in gas transit, is a good thing – no matter
where it may come from. Further, there is a school of
thought that insists Western companies should try to
avoid dependence on Russia, the world’s current top
gas producer, because of concerns over long-term supply.
At the end of the day, business is business. Oil and
gas companies want to get the most efficient, most
cost-effective pipeline they can – no matter whether
it comes from Russia, Iran or anywhere else. But for
the American administration, political games come
before free enterprise.