adamnb

What Goldman Learned from a Trip to China

Correction: I think you got your pipelines mixed up. First off, it the pipeline to Siberia is with Gazprom, regarding nat. gas from Siberia, not oil. Second, the contract has not been signed but is being considered (there is a dispute over pricing). The Russians say it's a done deal, the Chinese say it's being considered. Third, there are two pipelines being considered, one from Iran through Pakistan (IPI pipeline) to the port of Gawar (destination China and possibly India). This is supported by Iran, Pakistan, Russia, and China but opposed by the US and Europe. Another line being proposed by the US and backed by Europe is from Turkmenistan's huge gas fields, crossing Afghanistan, Pakistan, destined for India
(TAPI pipeline), originally proposed years ago by Unocal (which later was acquired by Chevron, and prospective co-venturer, Halliburton.

Russia has been building an oil line, with a spur to China, Japan, and the Pacific (destined for SW Asia and US), and underwrote major financing for 20 years of supplies from Rosneft, the company that took over Yukos assets.


On Oct 23 08:35 AM Popham wrote:

> And yes, just last week Russia and China signed a contract (s) for
> pipelines from oil rich Siberia to China worth $3.5 billion.
> Demand for energy resources in the far east is high, which is another
> reason why the seven major oil companies want to run a pipeline from
> Siberia through 400+ miles of Afghan territory to Pakistani ports
> on the Arabian Sea and on to the Indian Ocean and oil-hungry countries
> of the far east. Surely, this level of competition will indeed<br/>drive
> up the cost of oil......$94/barrel? Maybe more.