Energy Sector - 2

Naresh · (This post was last modified: 08-01-2008, 06:16 PM by Naresh.)

Originally Posted on the Nuclear Thread :

Mudy Ji, Viren Ji, Ravish Ji, acharya Ji - et al :

At the risk of being admonished by the Powers That Be for digressing from the topic of this, it is heartening to note the response - with many a heckled feather - at the âunfairness and bindingsâ on India by the US for the success of the âDealâ.

However, a much more sinister game is being played in respect of Indiaâs Energy need in the Form of Natural Gas of Iranian and Turkmenistani Origin traversing through 750 Kilometres - possibly more - Territory of the Terrorist Wahabi Republic of Pakistan.

Twirpistan has opposed India at every Forum in every cause and has fought tooth & nail in its efforts to frustrate Indiaâs Progress to its destined goal.

Our Leaders are continuously calling this Natural Gas Pipe Line as a âPeace Pipe Lineâ. I would term it as a Pipe Line of War especially with Pakistani Domestic Pipe Lines - be they Gas, Oil or Water etc. - being regularly blown up 300 to 400 Times a Year.

Why is no one protesting at this stupid self defeating act of the Kalidas Ilk? <img src='style_emoticons/<#EMO_DIR#>/furious.gif' border='0' style='vertical-align:middle' alt='furious.gif' />

I am cross posting this on the Energy Thread and look forward to an Recrimination as well as Name Calling Free mutually beneficial dialogue.

Many thanks in advance.

Cheers <img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' />

ravish · 08-02-2008, 01:10 AM

Nareshi,
In the last 48 hours the international media has once again highlighted the present state of affairs within Pakistan. For a change, the coverage is being given by the US Press, a country suppose to be very close to Pakistan. Therefore, any pipeline passing through that country should not be considered as a reliable line of supply. It can only serve as a supplementary source of supply.
In India the dependence on oil needs to be reduced. The railways should come out of the grip of the oil mafia and accelerate its track electrification programme. Similarly, a concerted effort needs to be made to increase power generation by all means excluding high speed diesel and furnace oil. Due to acute power shortage, enormous amount of diesel is burnt to provide emergency supply all over the country. It is more visible in the small towns and in rural areas. If we can stabilise power supply, considerable reduction can be achieved in consumption of diesel.

Naresh · 08-02-2008, 02:30 AM

Ravish Ji :

One can talk in terms of supplementary supply of Water, Crude Oil and its Refined Products, Coal etc. as it is moved to various parts of the world.

Natural Gas usage is inhibited by a narrow âmarketâ i.e. LNG can be received by about 15 to 20 Countries and Natural Gas by countries in the vicinity of the Gas Fields. For Long Distance Pipe Lines the cost of Transportation is many time the cost of the Gas at the Departure Point in the Producing Country.

The LNG Trade is again a dedicated trade i.e. The Supplying nation builds LNG Trains (Liquefaction Units) and LNG Loading Harbours & Terminals for a set number of Customers. I believe in Qatarâs case the whole production of one LNG Train is dedicated to India.

Again the LNG receiving country builds a Dedicated Harbour and Receiving Terminal along with a Re-Gasification Plant for the Long Term contracted LNG Supply - contracts of 25 Years are the norm but one does see shorter contracts - especially in todayâs Economic Climate.

As such even if a Pipe Line carrying a supply limited to supplementary source of supply is âblown upâ then one cannot supplement it by importing LNG as there is no LNG Liquefied and stored in Tanks for âSpeculative Tradingâ.

Thus it is a crying shame that the Oman to West Coast India Deep Sea Pipe Line envisaged in 1991-1992 is still not acceptable with the Mandarins of the Indian Government Establishment.

Today it is the necessity of the hour to import Natural Gas from Iran or Qatar to the West Coast of India as the Final cost of the Pipe Line will be lesser than a Land Pipe Line.

Reasons : There are no âTransit Charges, No Security Expense, No Maintenance Expensesâ as the Oman to West Coast of India Deep Sea Pipe Line is on an average 2000 Metres water depths.

Additional advantage is that a Deep Sea Pipe Line can be Insured on the Insurance Market but a Pipe Line though Pakistan cannot be Insured and will have to be covered by Pakistanâs Sovereign Guarantee - a Guarantee that would not be worth the paper it is written on.

I fully agree with you on the High Cost of Electric Power Supply based on Furnace Oil and may be twice or even thrice as much if based on High Speed Diesel Oil and this source of Supply must be restricted to a minimum if not obviated.

Thus my Basic Query as to why there are no protests in respect of the envisaged Natural Gas Pipe Lines via Pakistan remains unanswered.

Cheers <img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' />

ravish · 08-02-2008, 10:38 PM

[I do appreciate the concern expressed regarding the various pipeline projects that are supposed to pass through Pakistan .As highlighted in the previous postings, it will be observed that Pakistan is being closely cornered by all who matter on the question of promoting terrorism.

Nareshji, I agree that in the present situation it is not prudent to go ahead with such a vital project in such uncertain conditions. At the same time we will have to see the other aspects of the problem. By this I mean to say that if we shut all interactions with Pakistan, as is widely felt by many what would be the outcome. It is possible that it continues with its present activities and since there is no interaction , Pakistan will not be expected to answer to others and this will give them more freedom to continue acting on activities which are detrimental to our interest.

Today one can see the sorry picture of the Pak leadership in all international forums, which has also not gone unnoticed in Pakistan media and you must have monitored and taken note of the same. How this has become possible, It has become possible by the process of continuous engagement and dialogue with successive Pakistan Government in recent times. This interaction has not been confined between India and Pakistan only but also between other nations and Pakistan. The entire leadership of Pakistan is today on the defensive, not because of our assertion but because USA has also finally realised that the time has come to talk tough with Pakistan. So at the end it appears that the grand plan of keeping Pakistan engaged through CBMs are finally paying dividends. The CBMs and dialogues have to continue so that there is ample opportunity to put the Pak leadership on the dock during all major events and summits.

Now let us take up the issue of the pipeline through this country. All in their right sense do realise that the link will be extremely unreliable. However, at the same time one has to look at the project keeping in view the theory that I have tried to put forward in the previous paragraphs. Whenever, there will be any disruption in the supply the whole world will feel how bad are the fellows. Having said this I feel that this supplementary link need not be considered as a reliable one and our energy security experts should make all other arrangements that are required to ensure reliable energy supply for the future.

I welcome valuable in depth comments from my esteemed friends in this forum.

Naresh · 08-03-2008, 02:05 AM

Ravish Ji :

I am sorry that I cannot access the âEnergy Sector - 1â Thread. As such I will once again Post Dr. Bhaskar Dasguptaâs Article âThe Pipeline Perplexityâ

Firstly : From the page 2 of the present Thread you will find that even our Prime Minister Man Mohan Singh as per the Article Indo-Iran pipeline fraught with risks : PM as per the Hindustan Times of 21st July 2005 was apprehensive of this Pipeline. The Hindustan times Archive is not accessible.

Secondly : It is rather disconcerting that one takes the view that any disruption in the supply the whole world will feel how bad are the fellows.

Pakistan has invaded (1) The State of Jammu & Kashmir (2) Pakistanâs 1965 War on India (3) Pakistan Slaughtered over Three Million East Pakistani Bengalis (3) East Pakistanâs Hindu Population content was 28 per cent at the time of Partition. In 1951 Pakistani Census it was 22 per cent. In 2001 Bangladeshi Census it was 9.2 per cent. Today it may be below 8 per cent.
(2) Pakistanâs Kargil Episode

Has even a Single Country in the âWhole Worldâ done anything about it?

Here is Dr. Dasguptaâs Article which is presently inaccessible from the Hindustan Times Archive :

[center]THE PIPELINE PERPLEXITY : DR. BHASKAR DASGUPTA[/center]

A couple of years ago, there were two major news items relating to discoveries of oil in the world. The first was in north eastern Russia and the second was in western Iraq. It was also reported that two rapidly growing economies, South Korea and Israel were planning to use those oil deposits through oil pipelines. South Korea would fund an oil pipeline from Russia to South Korea passing through North Korea, while Israel (with US help) would have a pipeline from Iraq, passing through Jordan and the West Bank into Israel proper. Both countries are energy starved and would love to have oil on tap to develop vast downstream industrial areas.

Do I see a double take? Do I see words like, "is this guy nuts? Who in his right mind would want to set up a pipeline through enemy territory?" Actually, you are right, the above two stories are purely fictitious, but the proposed Iran to India oil/gas pipeline passing through Pakistan is not! This is such a hair brained scheme that I am literally gobsmacked that the newspaper reports coming out of the subcontinent are actually suggesting that this pipeline will be agreed upon shortly.

I have spoken many a time before about the lunacy of this scheme in my financial column, but given the newspaper reports, I thought of dashing off something immediately to warn people of the dangers, as the people in the corridors of power in India seem to have gone off their rockers. Why is this idea such a danger and why are people continuously pointing towards the Indus River Treaty as a framework for the pipeline?

First some FAQ:

1) What is the pipeline all about?

It's going to be a natural gas pipeline. Currently, natural gas is liquefied, pumped into huge tankers and then carted around the world. What cannot be sold or piped off is simply flared off. In the photographs of oil installations, you will see a small flare usually somewhere around the installation. That is the natural gas which is being flared off.

2) Where is it going to be laid?

The pipeline starts in Asaluyeh, Iran, travels to Pakistan through Khuzdar, with one branch line to Karachi and the main line to Multan, Pakistan, and from there on to Delhi where presumably, the GoI will have a domestic routing into the industrial and domestic consumers. This is the overland route, there is also a proposal for an undersea pipeline which would totally bypass Pakistan, but would be much more expensive. In any case, the pipeline under discussion is the overland pipeline crossing Pakistani territory.

3) So why can't you just ship it?

That is what is happening right now, but the cost of liquefying it and shipping it almost doubles the landed cost.

4) Why are the Iranian's so interested?

Two major reasons, first is that because of the logistical bottlenecks the vast natural gas reserves are just flared off and not exploited properly. The second reason is security, shipping means exposing their key economic factor to the USA's battle fleets, which is in permanent residence in the Arabian Gulf and Persian Gulf.

5) Why is Iran so interested now?

Well, the Iranian South Pars field was only explored in 1988. The field is being developed by Grazprom of Russia, Total of France and Petronas of Malaysia. British Gas and Anglo-Dutch Shell is also participating in the project (both the field and the pipeline), with Grazprom signing a $3.2 billion protocol for the pipeline with Pakistan.

6) Why is Pakistan so interested?

For several reasons, the land of the pure is in deep doo doo economically, and it is anticipated that a gas pipeline from Iran to India can give Pakistan over $14 billion over 30 years, not to mention having another source of gas. Pakistan is fast finishing its own Baluchistan gas reserves, so having another source of supply would be much appreciated.

7) Why is India interested?

Well, we already mentioned the fact that it will be considerably cheaper to pipe it than to ship it. India is suffering from severe energy deficiency (for both industrial and consumer use) and pipelines from Central Asia, Iran and the Gulf would be godsend. The Gulf is a bit too far away, as well as it would be very difficult, not to mention expensive, to lay a pipeline on the sea floor. Central Asian gas will have to pass through Afghanistan and only a moron will consider that option. Which leaves the Iranian pipeline?

8) Who is cheering for this inside India?

Well, the corporates are desperate for energy sources as well as for opening up Iran's markets so the pipeline can be considered as a quid-pro-quo. The bureaucrats love theidea (they will have an entirely new kingdom to play with, make money off and generally behave in their usual corrupt manner. The technocrats also love the idea, finally linked into international gas grid, etc. (theoretically speaking, if the gas pipeline does come into the picture, it just needs a few sections to see a consolidated grid running from Western Europe to East Asia, Russia down to South Asia.)

9) So why am I getting so upset about this pipeline?

Ah! Ha! Good question, read on, McDuff.

Let's take a theoretical pause and say that India says, "Sure, why not, let's have the pipeline today" and the bureaucrats/diplomats have been very nice and diligent, getting insurance from a syndicate, having an agreement with Iran and Pakistan that India will only pay for gas which is delivered at India's frontiers. The World Bank is involved and has brought together a whole bunch of construction firms, project financing firms, insurance firms, consulting firms to bring this happy situation about. The World Bank has drafted a 900 page contract (with 20 appendixes of 1000 pages each) which is signed with lots of fanfare by the Indian Prime Minister, the Pakistani President and Iranian President, huge photo clickage, huge headlines, everybody tickety boo and feeling quite pleased with themselves. Who knows, the Nobel Peace Prize may also be on the table!

In 2010 we have this nice shiny pipeline running across the country, delivering humungous quantities of gas to energy hungry industries and consumers sick of carting those silly gas canisters around every month or so. Energy is a funny resource, it has a massive force multiplier effect. It causes all kinds of nice chain reactions. Once there is cheap energy available, then the energy hog industries such as iron and steel, pharmaceuticals, manufacturing, etc start rapidly developing. Once we have these, then ancillary industries blossom and soon you have the rise of a huge industrial cluster in North India delivering almost five per cent of India's GDP directly or indirectly. It is no surprise that Gujarat and Maharashtra state have so much of industrial capacity, simply because of the relative abundance of cheap energy compared to other states. Besides this, you will have consumers having gas on tap with pipelines piped into their houses (so I am projecting this, stop chuckling!)

Then we come to the "oops" moment. The grand poo bah of some obscure tribe in Baluchistan, Pakistan gets upset because a traffic policeman gave his third cousin's wife's son a ticket or some other grand poo bah of another tribe flew a kite over his territory or something important like that. You know how it is with these grand poo bah's, when they get upset, its not for them to just cluck their tongues, say "aww shucks", have a cup of tea and forget about it. These guys have got artillery pieces and rocket propelled grenades and they do use them as frequently like you and I have hot dinners. They look around for some nice obvious target like a Barn or something. Oh! so what's that long shiny thing? Man, I cannot miss that, so they pop off couple of grenades or attach some explosive devices to the pipeline. Now, as you well know, gas pipelines are rather sensitive, and don't really like explosives going off on or near them. So, the gas pipeline goes up, and it takes a month to repair it and all. We have huge protestations of security, shows of rangers patrolling the pipeline, insurance claims flying through here there and everywhere, and the normal cacophony breaks out. In one month, the Pakistani's say, hey, its repaired so take your gas already. The Iranians say, hey, you don't have to pay so why are you moaning?

I will tell you why we will moan. Five per cent of our GDP will be affected, confidence rocked, long term contracts cancelled, small scale industries going bankrupt by the hundreds, working capital requirements shooting up with liquidity crunches, households in a total uproar because they don't have gas to cook and the infrastructure to provide gas cylinders has been wound up, markets diving south, financing costs shooting up drastically, risk premiums dramatically increasing, increased unemployment, etc. There is no amount of insurance which can ever satisfy the total potential damage that this interruption can cause. If we assume that the GDP will be $1 trillion in 2010, then the direct cost and indirect costs will be in the tens of billions of dollars if not more. Yes, the economy will be big, but the damage will be huge as well, can we take that kind of shock and pain?

Energy Security will be one of the key driving factors for India in the coming years. Other nations have gone to war over this; there have been riots, insurrections and revolutions over energy security. USA's foreign policy is almost completely driven by the need to provide energy security for its economy. While everybody hopes for Indo-Pak peace, I would still like to see evidence of stability in Pakistan before letting some unwashed tribesman or worse some foaming jehadi in Pakistan hold the fortunes of India hostage to his whims or some imagined foaming ideology. People will laugh this off by saying that I am being paranoid, Pakistan will gain so much from this pipeline that they would not dream of interrupting the supply. Unfortunately, I do not have a problem with the people who sign the contract or the vast majority of Pakistanis, but I do have a problem with the extremists. I see absolutely no evidence that these jehadi's are capable of understanding reason, logic, economics or international relations. They see a pipeline carrying gas to India and it may well be just too much for their easily excitable minds, after all fundamentalist see only what they want to see. With Kalashnikov's and RPG's sold in corner shops, there is motivation, there is opportunity, there are people and there is the means to pop off at the pipeline.

I would like to see an impact assessment exercise conducted and made public. I would like to see the Government of India carry out a threat analysis and explain to the public why it is taking the decision and what procedures, threat minimisation, which other alternative energy sources it has analysed. I would like to see what will be the knock-on factors in case of interruption of the gas supply. I would like to see that Pakistan can control its unruly extremists. If India can say Kashmir is the Atut Aang and threatens to go to war over it, just what will India do when the blown pipeline blows a ghastly big hole in India's economy? Let's just think this pipeline and its implications through before we let the euphoria of the moment sweep us into exposing India's jugular.

All this to be taken with a grain of salt.

(Dr Bhaskar Dasgupta, currently working on a doctorate at Kings College in International Relations and Terrorism, also holds a Doctorate in Finance and Artificial Intelligence from Manchester Business School. He works in the City of London in various capacities in the Banking Sector. He also lectures at several British Universities.)

I believe Dr. Dasgupta was last working for an International Bank as a Director in the Risk Management Department.

Cheers <img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' />

Capt M Kumar · 08-03-2008, 11:49 AM

<img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /> "If you can only have energy when the sun is shining, you're in deep trouble. And that's why, in my opinion, photovoltaics haven't penetrated the market," Daniel Nocera, an MIT professor of energy, said in an interview at his Cambridge, Massachusetts, office. "If I could provide a storage mechanism, then I make energy 24/7 and then we can start talking about solar."

Solar has been growing as a power source in the US. But it is still a tiny power source, producing enough energy to meet the needs of about 600,000 typical homes, and only while the sun is shining.

Nocera said his development would allow people to bank solar energy as hydrogen and oxygen, which a fuel cell could use to produce energy when the sun was not shining.

http://timesofindia.indiatimes.com/HealthS...how/3316499.cms

08-04-2008, 02:35 AM

Now Moron Singh and Babus had signed deal, according to them this N-deal will solve energy problem of India.
Now all problem are solved every house and hut will have 24x7 electricity, no load shedding. Gurudwars and temple will be built for these great Indian saviour of N-deal.
Now we don't have to look towards Iran or Bangladesh for pipelines. Miracle just happened and Messiah had just landed in India with Energy powers.

Stop worrying about pipelines. Start singing kirtans for Moron Singh, Sonia, Babus and other traitors of India. There is high probability some heads may get direct light.

<img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /> <img src='style_emoticons/<#EMO_DIR#>/stereo.gif' border='0' style='vertical-align:middle' alt='stereo.gif' />

Naresh · 08-04-2008, 06:49 PM

Mudy Ji :

One can understand the pique of those who take great umbrage at the India-US Nuclear Deal being signed in its present form.

However, it is fallacious to state that Nuclear Power will be able to fulfil Indiaâs Total Power Needs.

India will need Natural Gas and one is shocked that there has been no âUproarâ from the Indian Intelligentsia as well as the Indian Strategic Analysts and Mandarins.

Be assured that one is not Privy to any information regarding Indiaâs Energy Requirements especially in the form of Natural Gas.

However, one can only guess that since the Qatari North Gas Fields are in a âBlocâ which also consists-adjoins the Iranian South Pars Fields it could be quite possible that the US - through the Exxon Mobile Partnership encourage Qatar to supply Natural Gas by Pipe Line or in the Form of LNG to India thus extracting Natural Gas from the a Reservoir which has access both to the Qataris and the Iranians.

It may seem-sound âOutlandishâ but far more improbable schemes have succeeded in other areas of Oil and Gas Extraction.

Cheers <img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' />

08-04-2008, 08:03 PM

Nareshji,
You are missing biggest coup just took place in India in front of your eyes, it was bloodless. India accepted Ramu job of USA. I will not even count India as 52 or 53 state of US, that is reserved for UK and Pakistan.

Now all foregin policy will be decided by what mai bap in massaland will tell these morons in South Block, when they will nag they will give them some piece of dry chapati and big kick in stomach.

Now you have to tune your thinking, what will fit massaland interest and that will happen. Mark my words.

Massland is in mood to harass Iran for some decades till they become useless like Iraq. They did for a decade to Iraq and now Iraq is completly destroyed now its Iran turn.

Regrading natural Gas, South block should start distributing garlic to billion Indians, they will produce Natural Gas.

08-06-2008, 07:41 PM

BP rubbishes India's claim on oil speculators
QUOTEHe added that blaming "speculators" was like putting the cart in front of the horse and then flagellating it for not moving.

"Investors follow expectations, which are following real developments, and real production and consumption numbers," Ruhl said.Â Â 
The mouthorgan for BP needs to be reminded that the same line of thought is pretty prevalent in US. Infact, CEO of every airline operating in US has lobbied Congress to end the speculators influence on oil prices. Check the list of US based companies fighting speculatorshere

08-06-2008, 07:49 PM

In 1999 Bill Clinton signed bill and permitted oil future trading without regulation. After signing of bill, future trading group was formed based in NY and London, after that we started seeing real effect 2001.

Capt M Kumar · 08-16-2008, 12:10 PM

<img src='style_emoticons/<#EMO_DIR#>/india.gif' border='0' style='vertical-align:middle' alt='india.gif' /> âThe modified Ambar charkhas were introduced a few months ago as a pilot project by the Khadi Commission under the âSFURTIâ (Scheme of Funds for Regeneration of Traditional Industries) programme and they are proving very popular with the villagers,â said Laxmi Chand Bhandari, Secretary of the Khadi Gramodyog Sadhan Vikas Samiti, a 40-year old Sarvodaya organisation that looks after the Bassi cluster.

âThere is great demand for khadi products and we could have provided more Ambar charkhas to the villagers but getting weavers is a problem these days,â Mr. Bhandari said.

Each modified charka costs Rs. 8,500 while the attachment, which enables to produce electricity, requires an investment of another Rs.1,500.

As per the concept of âSFURTIâ, the e-charkhas have been provided on 75 p.c. grant with the remaining amount is to be paid by the beneficiary in easy installments.

http://www.hindu.com/2008/08/16/stories/...980100.htm

Capt M Kumar · 08-23-2008, 10:41 AM

<img src='style_emoticons/<#EMO_DIR#>/specool.gif' border='0' style='vertical-align:middle' alt='specool.gif' /> "33 per cent of the universe is without electricity and a large part of this is in India." Bachchan told newspersons on the eve of the UK leg of the show 'Unforgettable' to be held at the O2 Arena in London on Sunday.

"We have taken up the cause of providing electricity in 100 villages (across the world by Feb 2009) and through this tour, hopefully, we will be able to contribute towards providing solar lantern to at least one village in India. As the tour moves we would like to increase the number of villages that we can lend our support to," he said.

http://news.in.msn.com/national/article.as...umentid=1646313

10-06-2008, 10:55 PM

BRENT CRUDE FUTR (USD/bbl.) 84.750 -
WTI CRUDE FUTURE (USD/bbl.) 89.320 -

Monthly Average Domestic Crude Oil Prices 2008
U.S. Average (in $/bbl.)
Month Nominal Inflation Adjusted 2007
Jan-08 $84.70 $86.20
Feb-08 $86.64 $87.92
Mar-08 $96.87 $97.46
Apr-08 $104.31 $104.31
May-08 $117.40 $117.40

Local gas station are making money.
When it was $104 per barrel local gas price was $3.65
Yesterday market price was $93 but local gas price was $3.70

10-06-2008, 10:58 PM

Last year of Bill Clinton when he signed bill to allow future trading in Oil

1999 $16.56
2000 $27.39
2001 $23.00
2002 $22.81
2003 $27.69
2004 $37.66
2005 $50.04
2006 $58.30
2007 $64.20
2008 Partial $97.98

Naresh · 10-15-2008, 01:13 AM

Iran scraps unsigned gas projects to push pipeline plans

TEHRAN : Iran is to scrap a number of liquefied natural gas (LNG) projects in order to expand its capacity to export gas by pipeline, the oil ministryâs Shana agency reported Monday.

âThe countryâs LNG projects whose contracts have been signed will be implemented. But we prefer to expand our gas exports capacities by pipeline,â deputy oil minister for planning affairs, Akbar Torkan, was quoted as saying.

âWe prefer to change unsigned (LNG) projects to gas exports plans via pipeline,â he said.

Iran has drafted several long-term LNG outlines to export 83 million tonnes of liquefied gas from its giant reserves, the second largest in the world after Russia.

But the costly projects have lingered for lack of investment and have been hampered by political obstacles.

The costly LNG technology has only been mastered by a few foreign companies, whose investments in the Islamic republic have not been expanded in recent years.

Western governments have pressured firms to cut their ties with Iran over the countryâs controversial nuclear programme, which world powers fear could be aimed at seeking atomic weapons â a charge vehemently denied by Tehran.

Cheers <img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' />

Naresh · 11-01-2008, 01:22 AM

TAPI gas project hits snags

QUOTEISLAMABAD : The much-delayed Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project has hit snags as Turkmenistan has failed to submit gas certification of the Daulatabad gas field to Pakistan, a senior government official at the petroleum ministry told The News.

Cheers <img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' />

11-08-2008, 12:40 AM

Putin calls Deora a âreal geniusâ negotiatorQUOTENew Delhi, November 7: In a rare compliment, Russian Prime Minister Vladimir Putin has described Oil Minister Murli Deora as a âreal geniusâ negotiator after he convinced the Kremlin strongman for sending a senior minister to India for energy talks. 
Now what this mean, Congress manage to collect huge bribe for Queen and Congress party for coming election and sold India's interest as part of deal.

11-12-2008, 07:44 PM

IEA doesn't see peak oil by 2030

Naresh · (This post was last modified: 11-13-2008, 02:51 PM by Naresh.)

[center]IPI project : Iran backs out of gas deal <img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' />[/center]

ISLAMABAD : Iran has backed out of the Gas Sales Purchase Agreement, making new proposals for selling gas to the IPI project.

Prime Minister Syed Yousuf Raza Gilani has convened a crucial meeting here on Thursday to discuss the matter, a senior government official told The News. Iran wants that in case gas supply to India is wilfully disrupted by Pakistan, then Iran will reduce supply of gas to Pakistan in the same proportion.

Tehran also wants Islamabad to allow one price review before the IPI project gets operational. Under the proposal, Iran will be authorised to re-open the price formula even before the commencement date of the project. This would trigger complete uncertainty in the prices of piped gas to be imported.

Iran wants to move the price formula closer to spot market prices, rather than long-term contract prices that is imperative to establish the viability of the project. However, Pakistan is of the view that uncertainty in gas price will make the IPI project economically unviable. Pakistanâs stance is that the price of imported gas must be competitive to alternate fuels in Pakistan market.

Foreign Minister Shah Mehmud Qureshi, who also holds the portfolio of Petroleum Minister, along with Petroleum Secretary GA Sabri will brief the prime minister on the proposed amendments to the Gas Sales Purchase Agreement. Members of the Senate Committee on IPI would also attend the meeting.

The official said Iran also wanted the removal of upper cap of $70 per barrel in the âSâ curve, which is a well-known project management tool and displays cumulative costs. The earlier GSPA was agreed on a trilateral basis in the light of gas pricing study by an independent international consultant.

Pakistan wants that any revision proposed by Iran should also be considered on a trilateral basis, unless and until Iran confirms its readiness to proceed bilaterally with Pakistan. The Pakistani side is also of the view that the Principle of âSâ curve should be preferably retained. However, considering the current crude oil prices, the existing pricing band of $30 to $70 per barrel, could be suitably adjusted to reflect the current crude oil prices. This concession to Iran would only be considered if Iran proceeded with the project bilaterally.

Cheers <img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' />

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