Posted on 11/10/2006 1:08:07 PM PST by Tailgunner Joe
Whilst Tehran is threatening to “re-examine” its relations with the International Atomic Energy Agency (IAEA) if the United Nations accepts a draft resolution proposed by the EU3 group (UK, France and Germany) without Russia’s amendments, Russia’s giant energy company Gazprom is picking up energy deals. In the latest one, it bought control in a gas pipeline project between Iran and Armenia. The Russian government is also getting involved in another project that would see a pipeline bring gas from Iran to Pakistan and India. All in all, these plans are worth billions of dollars if one considers that Iran, which holds 18 per cent of the world’s known reserves, is second biggest gas supplier after Russia.
Gazprom raised its stake in ArmRosGaz, a company that controls both Armenia’s domestic gas distribution business and the soon-to-be-completed gas pipeline from Iran, to 58 per cent.
Last year it had signed an agreement with the Armenian government under which Armenia would have to pay only US$ 110 per cubic metre of gas or about half the market price. In doing so, Gazprom will run Iranian gas supplies to Europe, rid itself of a potential competitor and achieve near monopoly in gas supplies to Western Europe.
“We hope to use the joint venture to become involved in extraction and development [of Iranian gas],” Alexander Medvedev, deputy chairman of Gazprom, told The Times. And there is a lot of extraction and development to do. Analysts in fact believe that 62 per cent of Iran’s potential gas reserves—estimated at 27,000 billion cubic metres—remain undeveloped.
But that is not all. Indian Petroleum and Natural Gas Minister Murli Deora said that Russia was keen to participate in all aspects of the proposed multi-million dollar Iran-Pakistan-India gas pipeline project.
In a recent visit to Moscow, Mr Deora said that Russia’s Industry and Energy Minister Viktor Khristenko expressed his country’s interest in participating “in the technical and financial aspects of the proposed Iran gas pipeline”
A final decision about this undertaking, with both Pakistan and India as active participants, will be taken by the two governments and that of Iran at a meeting yet to be scheduled but expected to be announced in the next few days.
At the same time, Iran has made it clear that nuclear fuel production will remain part of its energy strategy notwithstanding any disagreement with the IAEA.
From Moscow where he is currently on a visit, Ali Larijani, secretary of Iran's Supreme National Security Council and Iran's top nuclear negotiator, said that Iran would review its ties with the International Atomic Energy Agency if the draft resolution presented in the last few days by the United Kingdom, France and Germany was approved.
Russia has for its part submitted some amendments to the draft proposal, which calls for sanctions, whose effects would be to lessen its punitive aspects.
This is not good.
"Gazprom will run Iranian gas supplies to Europe, rid itself of a potential competitor and achieve near monopoly in gas supplies to Western Europe."
Putin & his Iranian cohorts controlling a large chunk of imported Western European natural gas supplies is beyond dangerous.
Gazprom is rapidly replacing OPEC as an energy menace.
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