(Thanks to the Disaffected Lib for pointing this out)
Iran has completed a natural gas pipeline, come Monday construction of the pipeline takes another step, Pakistan has agreed to start construction of the pipeline in their country, this is expected to take 2 years, Iran has huge deposits of natural gas ...
This project has been delayed because the USA has been threatening Pakistan, threatening to cut off monies to Pakistan if it has any dealings with Iran, however..
Pakistan needs the energy, they want this energy and so they will proceed, regardless of America huffing and puffing..
Why does this matter, there are several reasons, first off, this means another potential customer for British Columbia is off the table, and more, this pipeline doesn`t just go straight from Iran to Pakistan, this pipeline conveniently goes to the port of Gwadar, which has recently been put in Chinese control..
ISLAMABAD: The government on Monday formally awarded a multi-billion dollars contract for construction and operation of Gwadar Port to China with the hope that the port’s development would open up new vistas of progress in Pakistan, particularly Balochistan.
Under the contract, the port which will remain the property of Pakistan will be operated by the state-run Chinese firm — China Overseas Port Holding Company (COPHC). Earlier, the contract was given to the Port of Singapore Authority (PSA).
The contract signing ceremony held in the Presidency was attended by President Asif Ali Zardari, Chinese Ambassador Liu Jian, some federal ministers, members of parliament and senior government officials.
“The ceremony was actually held to mark the transfer of the concession agreement from the PSA (Port of Singapore Authority) to the COPHC,” said the president’s spokesman Farhatullah Babar.
The PSA is reported to have abandoned the project on the plea that Pakistan failed to meet obligations under the 40-year port-handling agreement signed in Feb 2007.
Media reports allege that the PSA, which was to spend $525 million on the project in five years, made no investment because of non-fulfilment of its demand for allotment of land worth Rs15bn.
Last year, the Supreme Court issued a stay order on the Gwadar Port contract, barring the PSA from transferring immovable property of the Gwadar Port Authority to a private party and allowed the Balochistan government to become a party to the case.
In Dec 2010, China had offered the provincial government to construct 20 more berths and make the port fully operational if the port was handed over to it.
President Zardari praised the award of the contract to China as an auspicious development in Pakistan-China relations and expressed the hope that it would create new economic opportunities for Pakistan and Balochistan.
So this Iranian gas line will not only serve Pakistan but any US saber rattling against Pakistan the gas can be diverted for use in China itself, and depending on the volume, or a future twinning of the pipeline China has secured another source for natural gas, and as we all know, China, Russia, Iran and other Middle East countries are on good terms, kinda like a country club for the Tyrannical..
And we here at The Straight Goods have already discussed that OTHER major natural gas pipeline, the really big pipeline, the one that will provide natural gas for decades to come for 600 million Chinese ...Here`s a little reminder of that project.
" The longest section of the Turkmenistan-Uzbekistan-Kazakhstan-China transit pipeline passes through Kazakhstan’s territory: it measures 1,115 kilometers in length, of the total 1,830-kilometer Turkmenistan-China distance. Kazakhstan is adding a dedicated export pipeline for its own gas exports to China. In combination, these developments (alongside planned oil exports) confer to Kazakhstan a major role in China’s energy security calculations.
Kazakhstan is currently transiting Turkmenistani gas to China at an annual rate that should approach 30 billion cubic meters (bcm) by December 2012 (i.e., set for the full calendar year 2013), plus small volumes of Uzbekistan’s gas in transit. The transit pipeline is planned to reach full operating capacity through the parallel Lines A, B and C at 65 bcm per year by December 2015 (presumably from the calendar year 2016 onward)"
"With the turn of a ceremonial valve, China’s president, Hu Jintao, opened a big natural gas pipeline from central Asia to China on Monday, significantly increasing China’s access to the fuel and providing the first major alternative to exporting the region’s gas through Russia.
The ambitious project runs 1,140 miles across three Central Asian nations to the Chinese border, linking Turkmenistan to the Chinese region of Xinjiang. Once inside China, it connects with a pipeline that can carry the fuel even farther east.
Though helpful to energy-parched China, the project siphons potential supplies from the long-delayed pipeline that the European Union would like to see built from Turkey to Central Europe. Such a project could also tap sources of natural gas in Turkmenistan, a stark illustration of the overlapping energy interests at play in the region.
For the China pipeline, Turkmenistan says it can supply 40 billion cubic meters of gas for 30 years once the line reaches full capacity, reported China Daily, an official English-language newspaper. That is about the equivalent of half of China’s current consumption of natural gas.
The pipeline is the first major export corridor for natural gas out of the region that does not pass through Russia. It breaks from the Soviet-era design of a pipeline system built to supply Eastern Europe via Russia to the north of Central Asia. The new pipe revives a pre-Soviet view of trade in the region, in which economic exchanges flow east and west, not just through Russia.
“The startup of this pipeline reconstructs the ancient Silk Roads and symbolizes friendship and cooperation,” Kazakhstan’s president, Nursultan Nazarbayev, said at the ceremony on Monday, the Interfax news agency reported.
Mr. Hu was in Turkmenistan to turn the valve, which signaled the start of gas being transported along the pipeline. An inauguration ceremony was also held Saturday in Kazakhstan for that country’s part of the project.
China’s accomplishment was all the more notable because Europe and the United States have been jousting with Russia for years to break its natural gas pipeline monopoly."
And more, Russia is moving very fast and aggressively to secure more crude oil capacity through pipelines specifically for the Chinese market
Kazakhstan, Russia dance with China over oil
"Kazakhstan and Russia’s scrap to supply the oil and gas China craves is full of twists and turns. It’s forging a new energy balance in the region –and beyond.
China’s drive to secure its energy supplies has led Kazakhstan, a growing energy producer, to seek as much of Beijing’s attention as possible. As a result, Russia’s ambition to control the majority of the energy supplies in the former Soviet Central Asia is at risk.
It helps Kazakhstan that the Chinese are shifting their oil focus from the Middle East, with its maritime lines of supply, to their overland neighbor. Kazakhstan’s state energy company, KazMunaiGas, has estimated reserves of 800 million tons of oil and gas, and accounts for 26% of Kazakhstan annual production, (21.6 million tons in 2012).
The construction of a Kazakhstan-China oil pipeline has only linked Asia’s largest economy more closely to the biggest Central Asian country. More than 200,000 barrels per day (bpd) flow from oil fields of central Kazakhstan to China’s northwest. The amount is expected to grow in the coming months, possibly reaching 240,000 bpd by the end of this year. The pipe runs from the port of Atyrau on the Caspian Sea to Alashankou in China’s Xinjiang province. The priority Kazakhstan is giving to this oil route shows its interest in developing stronger ties with Beijing.
Russia is aware of the pace at which Astana and Beijing’s relationship is growing, and has decided to not sit back. Last month, Russia’s state-owned energy companies Rosneft and Gazprom moved closer to groundbreaking deals with China. Rosfnet intends to raise billions of dollars from China in loans to be repaid by oil deliveries."
Let`s recap, China has a new pipeline from Kazakhstan that will service 600 million Chinese people, we have another natural gas pipeline that will supply Pakistan with a steady reliable source of natural gas, a pipeline which is proposed to be twinned, at least to the port of Gwadar which is controlled by the Chinese Government, and we have Russia, who are frantically speeding up pipeline capacity in order to ship more crude oil to China...
Which got me to thinking, specifically about individual country debt
USA--15.5 $trillion dollars.
Japan--12.4 $trillion dollars.
Germany--2.6 $trillion dollars
Italy--2.5 $trillion dollars.
France--$2.2 $trillion dollars
United Kingdom--1.6 $trillion dollars
India--1.2 $trillion dollars
Brazil--1.1 $trillion dollars
China--1.1 $trillion dollars
Canada--535 $billion dollars
Russia--45 $billion dollars.
Which one of those countries listed above is virtually debt free?..Russia, seems to me that Russia being closest to China, they have that advantage as well as the advantage of being able to lower the price, to undercut competition, they aren`t drowning in debt..
Not to mention that China itself has a 300 year domestic supply of natural gas, and there is another scenario which few have discussed, China is going full steam ahead in building nuclear power..
- Mainland China has 17 nuclear power reactors in operation, 28 under construction, and more about to start construction.
- Additional reactors are planned, including some of the world's most advanced, to give a five- or six-fold increase in nuclear capacity to at least 58 GWe by 2020, then possibly 200 GWe by 2030, and 400 GWe by 2050.
- China has become largely self-sufficient in reactor design and construction, as well as other aspects of the fuel cycle.