Page 7 - MEOG Week 03 2022

MEOG PIPELINES & TRANSPORT MEOG

Turkey offers Israel an alternative to Cyprus

TURKEY/ISRAEL TURKISH President Recep Tayyip Erdogan on quietly abandoned the project by submitting
January 18 said that Ankara remains interested a non-paper to Athens explaining its reasons.
in bringing Israeli gas to Europe via Turkey. His Greek media have reported that the non-paper
comments came after a decision made by Wash- described the project as a “primary source of ten-
ington last week to not support the eastern Med- sion” and something that would prove “destabi-
iterranean pipeline project that would use a route lising” for the region given the tensions it would
that does not include Turkey. cause between Turkey and regional countries.
“If [Israeli gas] would be brought to Europe, The $8bn EastMed pipeline project was
it could only be done through Turkey,” Erdo- launched in 2020. Greece, Israel and Cyprus
gan told journalists, according to a transcript inked an agreement to construct a 1,900-kilo-
released by the presidency. “Is there any hope for metre natural gas pipeline.
now? We can sit and talk about the conditions.” Turkey then protested that it would be laid
In 2016, Turkey and Israel held talks on through disputed maritime territories claimed
delivering Israeli gas using a pipeline that would by both Ankara and Athens.
enter Turkish territory. But the negotiations, In his comments on the US rejection of the
held at a time when years-long tensions between plan, Erdogan said it was hardly surprising that
the Turks and Israelis had eased, collapsed after the US had withdrawn its support because the
Ankara expressed outrage over Israeli actions in project would have been very costly. However,
Jerusalem and Gaza. he also noted that Turkey and Israel were of late
The US Trump administration subsequently enjoying positive engagements with top-level
started pushing the merits of the EastMed pipe- communication.
line project, which would transit Israeli gas to Israel’s natural gas reserves are estimated at
Europe via Cyprus rather than Turkey. But last around 800bn cubic metres with another 2 tril-
week the new US government under Joe Biden lion cubic metres thought to still discovered.™

POLICY & SECURITY

Iran claims dramatic rise

in ‘grey’ market oil sales

IRAN IT is widely accepted on the markets by now that restore relations with Tehran at least to the point
grey market oil sales to China by Iran have been where a revival of the 2015 nuclear deal—which
a major factor in helping Tehran dodge US sanc- would lift sanctions on Iran in return for a curb-
tions put in place to block Iranian crude sales ing of the country’s nuclear development pro-
around the world. gramme—can be achieved.
Entirely reliable data on how much oil Iran On January 14, Iran and China launched
has been able to export despite the sanctions the 25-year economic and political cooperation
remains out of reach, but the country’s oil minis- agreement they agreed in March last year. Dur-
ter, Javad Owji, claimed at the weekend that the ing the launch, Beijing reaffirmed its opposition
Iranians have enjoyed a dramatic rise in crude to unilateral sanctions imposed by the US against
oil, gas condensate and petrochemical sales in Iran. The commencement of the deal—widely
the past 10 months. regarded as a roadmap that could allow for many
Addressing lawmakers in Tehran, Owji stated billions of dollars of trade and investment if it is
that Iran’s budget for the next Persian calendar fully utilised—indicates expanded Iranian oil
and fiscal year (starting March 21) factors in sales to China, with attractive discounts, could
daily oil sales of 1.2mn barrels, the oil ministry’s be ahead.
official Shana energy news agency reported on The Iran newspaper on January 15 cited oil
January 16. ministry and Central Bank of Iran (CBI) data in
China remains Iran’s only known customer reporting that Iran’s oil revenues amounted to
for its oil, but since Joe Biden took over from $18.6bn in the past six months, up around $10bn
Donald Trump as US president a year ago, Ira- y/y. Its report also mentioned how more coun-
nian officials have occasionally indicated break- tries were now accepting Iranian oil.
throughs in other markets. Wider sales may However, where Iranian crude exports of the
have been made possible due to a relaxation in past few years are concerned, nobody has the
US enforcement of oil sanctions applied to Iran whole story. Tehran would not like to see all sales
and its customers as Washington attempts to on the radar.™

Week 03 19•January•2022 www. NEWSBASE .com P7