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EU Economic Adviser: Foreign investors estranged from "Islami" gas pipeline project

Oil&Gas Materials 28 July 2011 18:49
EU Economic Adviser: Foreign investors estranged from "Islami" gas pipeline project

Azerbaijan, Baku, July 28 / Trend D. Khatinoglu /

Foreign companies, which earlier expressed willingness to invest $ 800 million in the construction of the gas pipeline "Islami" (Iran-Iraq-Syria) gave up the idea, EU Economic Adviser Mehrdad Emadi told Trend.

Iran, Iraq and Syria signed an agreement on July 25. It provides the construction of the gas pipeline from Pars Special Economic Energy Zone (PSEEZ). It will unite the Iranian region Asalue with Syrian Damascus. The length of pipeline is 5,000 km, capacity - 110 million cubic meters daily.

Iran produces 600 million cubic meters of gas daily. This figure will be 1.2 billion cubic meters in 2012, Iranian Deputy Oil Minister Javad Oji said in an interview with media.
He said that six European investors stressed the readiness to invest in this project. The construction of the Islami gas pipeline is planned to be completed in 2014.

He said that six European investors stressed the readiness to invest in this project.

Iran says that it will have 250 million cubic meters of gas per day for export by 2014.
Iran produced 138.5 billion cubic meters of gas in 2010 and the country's internal needs in gas is 136.5 cubic meters.

Two companies from Western Europe and one company from East Asia previously declared about their readiness to jointly invest $800 million in the construction of "Islami" gas pipeline, passing through the territory of Iraq, Emadi told Trend over phone from London. But two months ago, the EU leadership and the U.S. Treasury contacted these companies and warned them that the companies, investing more than $10 million in Iran's projects, may be subject to sanctions.

"Thus, these three companies refused from investing in the construction of the Iran-Iraq-Syria gas pipeline," he said.

He added that two and a half months ago, Iran's oil ministry negotiated with these three companies about investing in "Islami" pipeline.

Emadi refused from naming these companies. He said that at present, none of foreign companies will participate in the construction of "Islami" gas pipeline.

The EU adopted new sanctions against Iran in October last year.

According to a decision of the U.S. Congress adopted last year, all companies investing over $20 million in Iran's energy sector are included in a "black list." As a result, Western large energy companies, including "Total", "Stat Oil", "Royal Duch Shell", "Eni" and others backed out of their Iranian operations.

Emadi said that at present, the sanctions against Iran are even more tightened and the companies, investing more than $10 million in Iran's projects, may be subject to sanctions.

Until now, the UN Security Council adopted six resolutions against Iran to stop its nuclear program and uranium enrichment process. Four of these resolutions provide for economic sanctions. The U.S. and other Western countries accuse Iran of developing nuclear weapons under cover of a peaceful nuclear energy program. Tehran denies the charges, saying that its nuclear program is exclusively peaceful in nature.

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