• 7 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 9 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 11 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 13 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 15 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 15 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 3 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 4 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 4 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 5 days Surprise Oil Inventory Build Shocks Markets
  • 5 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 5 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 6 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 6 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 6 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 6 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 7 days The Capital Of Coal Is Looking For Other Options
Alt Text

The New Challenger To Lithium Batteries

The lithium-ion battery is head…

Alt Text

Is OPEC Considering Deeper Output Cuts?

You could argue OPEC and…

Alt Text

The Geopolitical Consequences Of U.S. Oil Exports

The United States has ramped…

What The Iran Nuclear Deal Could Mean For Asia

What The Iran Nuclear Deal Could Mean For Asia

One of the big winners of the historic deal between Iran and the P5+1 nations over its nuclear program will be Asia. Specifically, the deal will be a boon to Iran’s major trading partners: China, Pakistan, and India.

China is moving forward with the construction of a natural gas pipeline that will connect Iran and Pakistan. Chinese President Xi Jingping will sign the agreement when he visits Pakistan this month. Related: Top 12 Media Myths On Oil Prices

The pipeline was on hold due to U.S. sanctions on Iran. Although sanctions remain in place for now, China and Pakistan are moving forward. There are several reasons for this. First, Pakistan is in dire need of new energy sources as much of the country is critically short on natural gas for its power plants. After the pipeline is completed, Pakistan could tap into enough gas to power 4,500 megawatts of electricity. But, Pakistan also needs China’s financial backing – the pipeline will cost an estimated $2 billion, and that is just for the section inside Pakistan’s borders.

For China’s part, building the pipeline will open up Iranian gas for export. There is also the possibility of building a liquefaction terminal at the port of Gwadar, allowing Iranian gas to hit the wider global market. Gwadar is a strategic hub for China, where it already manages the port and hopes to build up a major naval presence. China plans to connect Gwadar to its western province of Xinjiang through road, rail, oil, and gas connections. The Iranian-Pakistan gas pipeline will tie in nicely to China’s strategic plans in the region. Related: Top 4 Energy Innovations On The Horizon

For Iran, obviously, the pipeline would allow it to export natural gas that could refill depleted state coffers. That would be one of many ambitious energy export deals that Iran will suddenly be able to secure, assuming sanctions are lifted. Iranian officials also visited China this week to meet with state-run oil firm Sinopec. The two sides are in talks over the expansion of the Yadavaran project, a 50,000 barrel-per-day oil field. The Iranian-Chinese energy relationship will grow enormously after the nuclear deal. Related: Saudi Aramco’s Clever Strategy To Scoop Up America’s Best Energy Talent

Moreover, India plans on benefiting from Iran’s new rapprochement with the West. India, in desperate need of energy, will ramp up its imports of Iranian oil once sanctions are lifted. Never exactly comfortable with the sanctions on Iran, India was under enormous pressure from the U.S. to comply. If a nuclear deal between Iran and the West is finalized, that pressure may go away and India can resume its oil relationship with Iran.

The U.S. is hailing the agreement as a step forward for international peace. China, Pakistan, and India are also pleased with the outcome since it will open up vast new economic opportunities.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News