Iran: World’s top oil pipeline developer

Global Energy Monitor, in a recent report, has said Iran is the world’s top country in terms of oil pipelines under construction.

Based on the report, the Iranian Oil Ministry is also among the world’s top oil pipeline developers.

According to new data from Global Energy Monitor, Africa, and West Asia are home to 49% of all oil transmission pipelines under construction globally at a cost of US$25.3 billion.

The 2023 annual survey of data in the Global Oil Infrastructure Tracker shows that these regions together are building 4,400 kilometers (km) of crude oil transmission pipelines at an estimated capital expenditure of US$14.4 billion.

An additional 10,800 km are proposed in these regions at an estimated cost of US$59.8 billion.

Globally, there are 9,100 km of oil transmission pipelines under construction and an additional 21,900 km of proposed pipelines. These pipelines in development are estimated to cost US$131.9 billion in capital expenditure.

The total 31,000 km of oil pipelines in development globally represents an increase of nearly 30% from this time last year.

The leading five countries in terms of in-development pipelines (proposed and under construction) are Iran, the United States, India, Iraq, and Tanzania.

The top five parent companies developing oil pipelines are state-owned enterprises and private companies, including Iran’s Oil Ministry, the China National Petroleum Corporation, Iraq’s Ministry of Oil, India’s Numaligarh Refinery Limited, and France’s TotalEnergies.

The longest pipeline projects under construction are the 1,950-km Niger–Benin Oil Pipeline and the Paradip Numaligarh Crude Pipeline (PNCPL) in India, both slated to start operating in 2024.

Canada is home to the third-largest pipeline project under construction, the 980-km Trans Mountain Expansion (TMX), expected to start in 2023 as an expansion to the existing Trans Mountain Oil Pipeline.

Iran seizes third tanker

According to Seatrade Maritime News, Iran has detained a third tanker within 19 days, as the confrontation over the control of maritime assets in the Persian Gulf heats up.

"An Iranian oil tanker, which was seized by a foreign company five years ago, has been returned to the Islamic country in an operation by the Islamic Revolution Guards Corps (IRGC)," reports news agency IRNA.

On Saturday, the Tehran Times cited reports from Iranian news agency Tasnim to say that the 10,000-ton oil tanker Purity had returned to Iranian territorial waters as a result of a court order and a joint operation by the IRGC Navy and Intelligence Ministry, according to Mojtaba Qahremani, head of the justice department in Iran’s southern province of Hormozgan.

“The seized 10,000-ton oil tanker Purity had been illegally leased to a foreigner by falsifying documents since 2018 and its Iranian owners were deprived of the benefits of the oil tanker,” Qahremani was quoted as saying.

In contrast to earlier seizures by Iran, which appeared to have been limited to disputes over the cargoes on board vessels, the Islamic Republic implied the capture of the Purity involved the restitution of Iranian property to its rightful owners.

"The US Department of Defense will be making a series of moves to bolster our defensive posture in the Arabian Gulf," White House spokesperson John Kirby told a news briefing on Friday, according to Reuters.

In the past two years, Iran has harassed, attacked or interfered with the navigational rights of 15 internationally flagged commercial vessels, US officials were quoted as saying.

“Following a judicial order and close cooperation between the IRGC Navy and Intelligence Ministry, the oil tanker was finally identified and confiscated in the Persian Gulf waters earlier this month,” Qahremani added.

The Tehran Times said the ship docked in Iran’s Assaluyeh Port on the Persian Gulf’s westernmost coast to have its fuel consignments unloaded.

Late in October 2022, forces from the IRGC’s first naval zone captured a foreign tanker ship carrying 11 million gallons of illegal fuel in the Persian Gulf, the publication said. “The Islamic Republic has said unequivocally that the Persian Gulf would never be a safe haven for smugglers.”

In 1986, a series of missile and other attacks on Gulf-bound tanker shipping led to a surge in insurance rates for tanker owners, and the creation of a new bunkering hub in Fujairah, as the UAE cashed in on the agglomeration of shipping at anchor outside the Strait of Hormuz in order to avoid the conflict.

 

Gatwick Airport flights diverted and delayed

Flights from Gatwick Airport were halted Sunday afternoon due to reports of drone activity close to the airspace. At least 12 inbound flights were diverted away from Gatwick for almost an hour while an investigation took place into the suspected drone.

One departing passenger, Tarquin Cooper, tweeted, “Are you aware Gatwick is closed due to drone activity? Been sitting on tarmac for last hour.”

Seven easyJet arrivals were diverted – five to Luton, one to Southend and another to Bristol.

British Airways’ arrivals from Faro and Palma touched down instead at Stansted. The Essex airport was also the unexpected destination for passengers flying on Vueling from Rome, Tui from Kavala and Turkish Airlines from Istanbul

With planes and pilots out of position, and dozens of aircraft delayed leaving the Sussex airport, disruption was likely to continue for the rest of the day. Gatwick is the busiest single-runway airport in the world, with little slack in the system when schedules unravel.

Passengers are not due cash compensation for such delays, as the disruption is beyond the airlines’ control. But if they are delayed overnight they must be provided with hotel accommodation and meals as necessary.

A Gatwick spokesperson said, “Passenger safety is the airport’s absolute priority and – following established procedures – operations at London Gatwick were suspended temporarily at 1.44pm while investigations into the sighting of a suspected drone close to the airfield took place.

“These investigations were completed and the airfield reopened at 2.35pm.

“Twelve inbound aircraft were diverted to other airports during the investigation; however, we expect many of these to return to London Gatwick today.”

Meanwhile, thousands of passengers seeking to travel between London and Paris have seen their trains cancelled by strikes in France.

Four trips from St Pancras International to Gare du Nord in the French capital have been cancelled during the afternoon and evening, with the same number axed from Paris to London.

Eurostar is telling passengers, “Due to short notice industrial action in France we have had to cancel some trains today. Our trains and stations are very busy. Please only come to the stations if your train is scheduled to run. We are sorry for any inconvenience caused.”

In December 2018, 120,000 passengers were affected by delays and cancellations due to drones being repeatedly flown over Gatwick Airport, with all flights grounded for at least 33 hours ahead of the Christmas getaway.

 

 

What could happen to the military if the US defaults on its debt?

As the United States stares down the barrel of a deadline to raise the national debt ceiling, past and current Pentagon leaders are sounding the alarm on how such an event could be deeply damaging to the country and those who keep it safe.  

Disrupted pay for service members, late benefits checks for veterans and a hit to US national security are only a glimpse into what could come.  

Defense Secretary Lloyd Austin made that much clear this week, telling lawmakers that the Pentagon won’t, in some cases, be able to pay our troops with any degree of predictability,” should a default come to pass. 

Joint Chiefs of Staff Chair Gen. Mark Milley said such an event could also embolden China and increase risk to the United States.  

The debt limit is the dollar figure up to which the Treasury Department can borrow to pay for congressionally approved spending decided through the annual appropriations process. 

The Biden administration and the GOP are at a standstill on the matter, with congressional Republicans demanding cuts in exchange for lifting the ceiling. The White House, however, has stood firm that the limit should be raised now, and spending cut negotiations will be handled separately. 

With the deadline approaching in a manner of week, the brinkmanship between the White House and congressional leaders to avoid a default so far has not made progress. 

The Treasury Department has warned the country could default, an unprecedented event in modern times, as soon as June 01, 2023.

And the Congressional Budget Office (CBO) issued a report Friday that estimated the federal government’s deadline could now be the first two weeks of June. 

The Treasury has never been incapable of paying US debt obligations – the one exception being in the War of 1812 when parts of Washington were burned, including the Treasury building – it’s not exactly clear what the effect would be on government payments.  

As the matter depends on how the Treasury Department decides to prioritize US bills, it’s to be seen what takes precedence. Ongoing obligations that deal with national security, however, require a big chunk of that change. 

The Defense Department expends multiple billions of dollars every day for military, civilian and contractor pay; fuel to run bases and keep ships at sea; maintaining US nuclear deterrents; keeping production lines running; and Social Security, Medicare and retirement payments for veterans. 

It would not just be a huge stain on US credibility in a very dangerous and unstable world; it would be the equivalent of a government shutdown of our national security.

The government could use whatever revenues it takes in if the debt ceiling is not raised, but those amounts would be woefully insufficient to support normal operations. 

On military salaries alone, the US is due to pay out about US$4 billion on June 15, according to an analysis released earlier this week by the Bipartisan Policy Center. 

On June 01, another US$12 billion is supposed to go to military and civilian retirement payments and US$12 billion towards veterans’ benefits.  

This isn’t the first time past and current Pentagon officials have raised alarms on how a default would affect the military. 

In a letter released in October 2021, the last time Washington neared the ceiling, Austin warned that a default would undermine the economic strength on which our national security rests and that it would also seriously harm our service members and their families. 

“I would have no authority or ability to ensure that our service members, civilians, or contractors would be paid in full or on time,” he wrote at the time. 

Austin noted that benefits for 2.4 million military retirees and 400,000 survivors would be at risk, federal contractors could have their payments delayed, and America’s international reputation and the stature of the US dollar would be at risk. 

Seven of Austin’s predecessors, in a separate letter to Congress, said that should a default halt payments to members of the military, it is unclear whether they would ever be repaid.  

Congress eventually raised the debt limit to roughly US$31.4 trillion in late 2021, but not without months of drama. 

Lawmakers are back in a similar situation this spring, as the GOP-led House has held firm on not raising the debt ceiling without significant spending cuts.  

President Biden and Speaker Kevin McCarthy earlier this week sat down with other congressional leaders to find a way forward, but no major movements have happened.  

For now, Pentagon leaders are making sure Congress understands the consequences should a debt default come to pass. 

“There’s just a number of things that we’re working with allies and partners on that would come into question as to whether or not we’ll be able to execute programs, but most important, this will affect the livelihood of our of our troops and our civilians,” Austin told lawmakers on Thursday. 

 

Iran-Saudi Arabia to boost economic co-op

During a meeting between Iran’s Finance and Economic Affairs Minister Ehsan Khandouzi and Saudi Arabia’s Finance Minister Mohammed Al-Jadaan, the two sides discussed the ways to expand economic cooperation and remove the barriers in the way of trade between the two countries.

In the meeting, which was held on the sidelines of the annual meeting of the board of executive directors of the Islamic Development Bank (IsDB) in Jeddah, the Saudi Arabian minister expressed satisfaction with the re-establishment of relations between Iran and Saudi Arabia and said, “We hope that quick steps will be taken in relations with Iran.”

“In this regard, it is necessary to remove the economic and trade barriers against the two countries”, he stressed.

Referring to the great opportunities for interaction and cooperation between the two countries, Al-Jadaan expressed hope that he will soon meet the Iranian finance and economic affairs minister in Riyadh.

The Iranian minister welcomed the progress of economic relations between the two countries and stated that the development of relations is important not only for Iran and Saudi Arabia but also for all countries in the region.

Khandouzi said these bilateral relations are very important not only from an economic point of view but also in the political and security fields.

Explaining Iran's program in the field of economic relations with Saudi Arabia, Khandouzi said, “At the government level, Iran and Saudi Arabia have not finalized any basic agreement in the field of investment, customs, and trade. In this regard, it is necessary to draw up and sign MoUs between the parties.”

The Saudi Arabian side, while agreeing to cooperate in the three fields of customs, trade, and investment, expressed hope that with the assistance of his country’s ministries, cooperation in the mentioned fields will be followed up.

 

Iran to participate in increasing capital of Islamic Development Bank

Iranian Finance and Economic Affairs Minister Ehsan Khandouzi said, Iran as one of the major shareholders of the Islamic Development Bank (IsDB), is implementing new measures to participate in increasing the bank’s capital.

Khandouzi made the remarks in a meeting with IsDB Chairman Muhammad Sulaiman Al Jasser on the sidelines of the annual meeting of the bank’s Board of Executive Directors in Jeddah, IRNA reported.

In this meeting, while pointing to the milestones of joint cooperation, the parties emphasized on removing the related obstacles and problems in the path of this cooperation.

Referring to the efforts made by the Iranian government to remove existing cooperation obstacles, Khandouzi pointed out the emphasis of the president of the Islamic Republic of Iran on strengthening joint cooperation with IsDB and solving the problems and challenges in the path of these interactions.

Al Jasser pointed out that the challenges facing the bank during the years of the Coronavirus pandemic and requested that the Islamic Republic of Iran, like other senior shareholders of the bank, supports the increase of the bank’s capital and fulfills its obligations to the bank.

The Islamic Development Bank is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and is located in Jeddah, Saudi Arabia. There are 57 shareholding member states with the largest single shareholder being Saudi Arabia.

 

Singapore: Countdown for Presidential Election

Amid global uncertainty and domestic anxiety over the cost of living, the next president of Singapore must be a unifying figure in whom Singaporeans have confidence. The job of the head of state has not changed much over the years, but people have come to expect more.

Observers say the election, which is called on a regular six-year cycle, will likely be held close to the deadline in September 2023, after the National Day celebrations – and after the National Day Rally speech by Prime Minister Lee Hsien Loong, usually in the second half of August.

This would be a time when issues and challenges confronting Singapore, as well as a sense of national identity and unity, would be at the forefront of people’s minds.

Dr Gillian Koh, deputy director of research at the Institute of Policy Studies, said that the conditions today are similar to those in 2011. 

Then, people felt that the world had seen an end to the “long boom” post-World War II and markets were anticipating another crisis in the United States and Europe which could affect Asia.

She noted that at the time, the candidate who eventually became president – former deputy prime minister Tony Tan Keng Yam – said he envisaged that the Government would make contingency plans, and gave the assurance that he would protect the national reserves with great care.

Similarly today, Singapore and the world face a tangled web of challenges – from US-China rivalry and the Russia-Ukraine war to disruptions to the global trade order – that PM Lee laid out in his speech during the debate on the President’s Address in April.

Hence, the upcoming election will involve choosing a candidate with experience, and who has a calming and steady temperament in crises, said Dr Koh.

National University of Singapore (NUS) sociologist Tan Ern Ser said it is not the president’s responsibility to directly address problems such as the economy and inflation, or geopolitical challenges, as these are the responsibilities of the prime minister and his Cabinet.

Instead, he said, the president should rally Singaporeans to stay socially cohesive and resilient amid external or internal threats, while keeping an eye on how the reserves are being used.

He added that the president could also use the prestige and symbolic power of the presidency to champion worthy causes that would enhance the well-being and unity of Singaporeans.

Dr Leong Chan-Hoong, head of policy development, evaluation and data analytics at research consultancy Kantar Public, said that in a politically divided world, the next president should also ideally have good working knowledge of foreign policy and international relations.

By design, the president has no executive, policymaking role. This remains the prerogative of the elected government that commands the majority in Parliament. 

Does it mean, therefore, that the president’s role is simply rubber-stamping? 

President Halimah Yacob’s tenure has shown otherwise, said political analyst and Nanyang Technological University (NTU) associate lecturer Felix Tan.

He said there has been some evolution in the “soft power aspect” of the role, with the President showing that she can still be involved in engaging with Singaporeans and championing certain social causes.

For example, she has spoken up on violence against women and the need to ensure a broader and more open meritocracy for all Singaporeans.

Courtesy: The Straits Times