• 14 hours Shell Oil Trading Head Steps Down After 29 Years
  • 18 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 20 hours Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 21 hours $1.6 Billion Canadian-US Hydropower Project Approved
  • 23 hours Venezuela Officially In Default
  • 1 day Iran Prepares To Export LNG To Boost Trade Relations
  • 1 day Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 1 day Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 2 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 4 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Google Gets There First: Autonomous Cars On The Road

Google’s self-driving car project, Waymo,…

Alt Text

The Undisputed Leader Of Tomorrow’s Oil & Gas Markets

According to the Executive Director…

Alt Text

Oil Refining Could Become Much Less Lucrative

If the world gets serious…

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