September 20, 2005
$1b Israel-Turkey oil pipeline planned
Oil will flow from Turkey to Ashkelon, from there to Eilat, to be shipped to
India and China.
Gal Nissim 20 Sep 05 17:47
Sources inform “Globes” that an oil pipeline will be laid between Israel and
Turkey at a cost of $1 billion. An Israeli delegation will discuss the
project with the Turkish government next month. Under the initial plan, the
pipeline will reach Ashkelon. The oil will flow from there to Eilat, and
will then be shipped to the Far East, mostly India and China.
The project will provide an alternative to the Suez Canal, which is unable
to handle large ships. The pipeline is expected to make Israel a strategic
country in the Middle East a transit country for huge quantities of oil. The
Ministry of National Infrastructures supports the venture, and sources
estimate that the project could generate huge revenue for the Israeli
economy.
The Indian government has announced that it intends to use the pipeline. The
Indian oil minister announced that his government was interested in using
the Ashkelon-Eilat oil pipeline to transport oil from the Mediterranean Sea
to the Dead Sea, from where it will be shipped to India in large tankers.
Turkey gets its oil from CIS countries.
The Ministry of National Infrastructures explained that the pipeline would
cut transportation costs for all parties in the deal.
Up until now, this oil has been exported solely to Western countries by way
of Georgia, due to lack of means to transport it to Asian countries.
The first shipment of 600,000 tons of oil will reach Indian oil refining
company Bharat Petroleum Corp. Ltd. in January. The oil will be sent through
from Azerbaijan to Georgia. From there, it will be shipped via the Suez
Canal to India.