Wednesday, 5 July 2023

Iran, Russia and India to promote freight transit through INSTC

The founding member states of the International North-South Transport Corridor (INSTC), namely Iran, Russia, and India, gathered for the third time in Tehran on Tuesday, to discuss solutions for promoting freight transit through the newly developed international corridor.

The event, dubbed “Iran Rah” was attended by senior officials from the three countries including Iranian Transport and Urban Development Minister Mehrdad Bazrpash, Head of Iran's Ports and Maritime Organization (PMO) Ali-Akbar Safaei, Deputy National Security Advisor of India Vikram Misri, and Senior Aide to the president of the Russian Federation Igor Yevgenyevich Levitin.

Speaking at the meeting, Bazrpash underlined some of the Islamic Republic’s major principles regarding the promotion of INSTC including multilateralism, partnership, transit neighborhood, networking, facilitation of trade, and intelligent and technological development of transit, and called for maximum collaboration for the development of exchanges through the INSTC.

Further in the meeting, PMO Head Ali-Akbar Safaei mentioned some of the advantages of transit through Iran for the countries in the regions and said, “Iran's joining the Shanghai Cooperation Organization and the Eurasian Economic Union will provide unique opportunities to the country’s trade partners, and the Islamic Republic is determined to remove all its tariff and non-tariff barriers in the shortest possible time.”

The main rationale for these trilateral meetings is to promote freight transit between India and Russia and other Persian Gulf and the Caspian Sea countries, Safaei said.

Elsewhere in the gathering, Misri emphasized India’s determination to cooperate with Iran and Russia for completing the INSTC saying, “India has been a participant in various initiatives and projects regarding the north-south corridor and has always been committed to providing its resources in the best way to the implementers so that this corridor is developed in the best way possible.”

Lavitin for his part called the INSTC a humanitarian corridor and asked the countries of the region to join this corridor to achieve its goals.

He underlined the definition of a single policy for trade through this corridor as the most important requirement for the development of trade in this initiative and added, “The main issue discussed in this meeting is defining the same framework and reaching a common understanding for all the business operators that are willing to use this route.”

Established in 2000 by Iran, Russia, and India, this 7,200-km-long INSTC works as a multi-modal network of ship, rail, and road routes for moving freight between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.

Geographically, Iran's territory, particularly the Chabahar port, is very strategic for the activation of the INSTC in linking India to Russia.

The INSTC is also an important transport agenda that is expected to considerably boost the transit and trade of Iran and Russia with the countries of the Caspian Sea and the Persian Gulf.

 

Number of countries willing to join BRICS Currency on the rise

The list of countries ready to join the BRICS alliance and accept the new currency is growing. From a set of 19 countries in April, the numbers have spiked to 41 by the end of June. A total of 22 new countries expressed interest to enter the bloc and ditch the US dollar in two months. 

The next BRICS summit will be held in August in South Africa where the bloc of five nations will collectively decide the formation of a new currency.

BRICS is an acronym for Brazil, Russia, India, China, and South Africa. The decision to expand the alliance will be jointly taken in the next BRICS summit and the bloc could soon become BRICS Plus.

The total number of countries that could challenge the US dollar on the global stage has reached 41. The developing nations that want to accept BRICS currency hail from Asia, Africa, and Eastern Europe.

The countries that have shown interest to join the BRICS alliance ahead of the summit are Afghanistan, Algeria, Argentina, Bahrain, Bangladesh, Belarus, Egypt, Indonesia, Iran, Kazakhstan, Mexico, Nicaragua, Nigeria, Pakistan, Saudi Arabia, Senegal, Sudan, Syria, the United Arab Emirates, Thailand, Tunisia, Turkey, Uruguay, Venezuela, and Zimbabwe.

Belarus is the first country in Eastern Europe that expressed interest to accept the new BRICS currency. On the other hand, France has also shown its interest to attend the next BRICS summit in South Africa.

Additionally, many countries in Africa remain on the sidelines and could announce their support for the BRICS currency after its launch.

It is worth noting why Africa is interested in BRICS and not the US dollar for global trade. 

Kenya has urged African nations to stop using the US dollar and trade in native currencies within the continent.

 

Tuesday, 4 July 2023

Has France gathered gold by ripping off Mali?

France, with its fourth largest gold reserves of 2,436 tons, doesn't even have a single gold mine within its borders. As against this, Mali a country once French colony doesn't hold any gold reserves in its banks, despite having a staggering 860 gold mines and an annual production of 50 tons.

This stark contrast raises important questions about historical injustices and the economic disparities that even persist today. The colonial past of France and its exploitation of resources in its former colonies have left a lasting impact. While France benefits from its gold reserves, countries like Mali, with abundant natural resources, struggle to reap the rewards.

These disparities in wealth and resources contribute to social unrest and inequality, as we've witnessed in recent riots in France. The frustration and anger of marginalized communities, including immigrants and descendants of former colonies, are rooted in these historical injustices.

As the world grapples with the complexities of immigration and social justice, it is crucial to address the systemic issues that perpetuate these disparities. It's not enough to simply acknowledge the past; concrete actions are needed to rectify the imbalances and ensure a more equitable future.

By fostering dialogue, promoting fair trade practices, and supporting sustainable development in countries affected by historical injustices, we can strive towards a world where resources are shared more equitably and opportunities are accessible to all.

Let the countries work together to create a future where countries like Mali can benefit from their own resources and where the impact of historical injustices is acknowledged and redressed.

Monday, 3 July 2023

Israeli troops and drones hit West Bank

Israeli forces hit the city of Jenin with drone strikes on Monday in one of the biggest West Bank operations in 20 years, killing at least eight Palestinians and involving hundreds of troops in sporadic gun battles that continued into the evening, reports Reuters.

Gunfire and explosions were heard throughout the day as clashes continued between Israeli troops and fighters from the Jenin Brigades, a unit made up of militant groups based in the city's crowded refugee camp.

"What is going on in the refugee camp is real war," said Palestinian ambulance driver Khaled Alahmad. "There were strikes from the sky targeting the camp, every time we drive in, around five to seven ambulances and we come back full of injured."

At times during the morning, at least six drones could be seen circling over the city and the adjoining camp, a densely packed area housing around 14,000 refugees in less than half a square kilometre.

The camp has been at the heart of an escalation of violence across the West Bank that has triggered mounting alarm from Washington to the Arab world, without so far opening the way to a resumption of political negotiations that have been stalled for almost a decade.

For more than a year, army raids in cities such as Jenin have become routine, while there have been a series of deadly attacks by Palestinians against Israelis and rampages by Jewish settler mobs against Palestinian villages.

The Israeli military said its forces struck a building that served as a command centre for fighters from the Jenin Brigades with what it called precise drone strikes using small payloads. It described the operation as an extensive counter-terrorism effort aimed at destroying infrastructure and disrupting militants from using the refugee camp as a base.

As the operation proceeded, Israeli armoured bulldozers ploughed up roads in the camp to dig up concealed improvised explosive devices, cutting water and electricity supplies, the Jenin municipality said as residents described soldiers breaking through the walls to pass from house to house.

"Nothing is safe in the camp. They dug up the roads with bulldozers. Why? What did the camp do?" said Hussein Zeidan, 67, as he recovered from his wounds in hospital.

In Washington, the State Department said it was closely tracking the situation in Jenin. A State Department spokesperson said it was imperative that all possible precautions be taken to prevent the loss of civilian lives.

An Israeli military spokesman said the operation would last as long as needed and suggested forces could remain for an extended period. "It could take hours, but it could also take days. We are focused on our goals," he said.

Until June 21, when it carried out a strike near Jenin, the Israeli military had not used drone strikes in the West Bank since 2006. But the growing scale of the violence and the pressure on ground forces meant such tactics may continue, a military spokesman said.

"We're really stretched," a spokesman told journalists. "It's because of the scale. And again, from our perception, this will minimize friction," he said, adding that the strikes were based on "precise intelligence".

Monday's operation, involving a force described as brigade-size - suggesting around 1,000-2,000 troops - was intended to help break the safe haven mindset of the camp, which has become a hornets nest, the spokesman said.

Its apparent scale underlined the importance of the Jenin camp in violence that has further exposed the impotence of the Palestinian Authority to impose its writ over towns in the West Bank, where it holds nominal governance powers.

Palestinian President Mahmoud Abbas said he was suspending contacts with Israel and called for international protection for our people. UN Middle East envoy Tor Wennesland said he was talking with all parties to de-escalate and ensure humanitarian access.

Hundreds of fighters from militant groups including Hamas, Islamic Jihad and Fatah are based in the camp, which was set up 70 years ago to house refugees in the aftermath of the 1948 war that accompanied the creation of Israel. The fighters have an array of weapons and a growing arsenal of explosive devices.

The Israeli military, which regularly accuses militant groups of basing fighters in civilian areas, said troops seized an improvised rocket launcher and hit a weapons production and explosives storage facility with hundreds of devices ready to be used as well as radios and other equipment.

It said it had also found weapons in a mosque where fighters had barricaded themselves inside in an underground section.

It was unclear whether the incursion would trigger a wider response from Palestinian factions, drawing in militant groups in the Gaza Strip, the coastal enclave controlled by militant Islamist group Hamas.

Saleh Al-Arouri, accused by Israel of leading the Hamas military wing in the West Bank, told Aqsa TV that fighters in Jenin should try to capture Israeli soldiers.

"Our fighters will rise from everywhere, and you will never know where the new fighter will come from," he said.

Israeli Defence Minister Yoav Gallant said his forces were closely monitoring the conduct of our enemies, with the defence establishment ready for all scenarios.

Following the last major raid in Jenin in June, Palestinian gunmen killed four Israelis near a Jewish settlement in the West Bank. That led to a rampage by mobs of settlers in Palestinian villages and towns.

Israel captured the West Bank, which the Palestinians see as the core of a future independent state, in the 1967 Middle East war. Following decades of conflict, peace talks that had been brokered by the United States have been frozen since 2014.

 

Pakistan: Ship breaking faces bleak outlook

According to Seatrade Maritime News, Pakistan’s Gadani Beach could become a ghost town as the ten-kilometre strip, home to more than 130 ship breaking plots, fails to adapt to the Hong Kong Convention rules.

Following the accession of Bangladesh and Liberia to the IMO’s Hong Kong Convention (HKC), the global standard will now enter force on 26 June 2025. It’s been a long time coming, having been originally adopted by the IMO in 2009, but it now has major implications for owners seeking to dispose of end-of-life ships.

Apart from rogue outsiders who still operate vessels in some regions where the global safety framework carries little weight, owners and operators will come under growing pressure to ensure that end-of-life ships are disposed of as safely and responsibly as possible.

As the third largest ship recycling nation, Pakistan recyclers are likely to find it increasingly hard to attract sellers. Unlike the other two ship dismantling subcontinent nations – India and Bangladesh – the country’s yard owners and managers have made few moves, if any, to upgrade facilities to meet HKC standards.  

“Gadani really has become virtually redundant as a viable subcontinent recycling destination,” declared GMS, the world’s largest cash buyer of end-of-life ships, in its most recent weekly report.

The warning coincides with a deepening economic crisis in Pakistan which has forced the country to seek emergency funds from the International Monetary Fund (IMF). Last week, it was revealed that a tentative agreement had been reached between the state and the IMF for a US$3 billion emergency bail-out. However, this has not yet been formally agreed. 

One result of the country’s financial crisis is that the central bank has been forced to limit or refuse to issue letters of credit to fund end-of-life ship acquisitions. Therefore, significant ship recycling deals have not been possible anyway.

Meanwhile, Eid holidays have resulted in a quiet week spell across the recycling sector as a whole. GMS said that any price ideas that were mooted remain noticeably below the market and not worth considering at this time. “Until we see liquidity issues ease in the industry, we are not likely to make much sense of local markets,” the firm added. 

GMS estimates that Bangladesh breakers continue to offer the sharpest prices, with container ships typically at around US$625 per ldt, tankers at US$605, and bulk carriers at US$575. Theoretical price levels in India and Pakistan are around US$60 to US$80 below these levels. Meanwhile, typical prices prevailing in Turkey last week were US$340, US$330, and US$320 for the three ship types respectively. 

 

 

Sunday, 2 July 2023

Sanctions on Iran are because of Southern Pars gas field, not its nuclear program

I started writing these blogs in June 2012. Over the years my focus remained on Iranian nuclear program, which is often termed the main cause of sanctions. However, when I posted my last blog on Leviathan gas field, offshore gas project of Israel, it dawned that the real cause of sanctions on Iran is its Southern Pars gas field, not the nuclear program. I quickly accessed Wikipedia and managed to put together some information.  

Pars field comprising of Southern Pars and North Dome fields is a natural-gas condensate field located in the Persian Gulf. It is by far the world's largest natural gas field, with ownership of the field shared between Iran and Qatar.

According to the International Energy Agency (IEA), the field holds an estimated 1,800 trillion cubic feet (51 trillion cubic metres) of in-situ natural gas and some 50 billion barrels (7.9 billion cubic metres) of natural gas condensates.

On the list of natural gas fields it has almost as much recoverable reserves as all the other fields combined. It has significant geostrategic influence.

This gas field covers an area of 9,700 square kilometres (3,700 sq miles), of which 3,700 square kilometres (1,400 sq mile) (South Pars) is in Iranian territorial waters and 6,000 square kilometres (2,300 sq mile) (North Dome) is in Qatari territorial waters.

The field is 3,000 metres (9,800 feet) below the seabed at a water depth of 65 metres (213 feet), and consists of two independent gas-bearing formations: Kangan (Triassic) and Upper Dalan (Permian). Each formation is divided into two different reservoir layers, separated by impermeable barriers. The field consists of four independent reservoir layers K1, K2, K3, and K4.

According to International Energy Agency (IEA), the combined structure is the world's largest gas field.

In-place volumes are estimated to be around 1,800 trillion cubic feet (51 trillion cubic metres) gas in place and some 50 billion barrels (7.9 billion cubic metres) of natural gas condensate in place. With in place volumes equivalent to 360 billion barrels (57 billion cubic metres) of oil (310 billion boe of gas and 50 billion boe of natural gas condensate) the field is the world's biggest conventional hydrocarbon accumulation.

The field recoverable gas reserve is equivalent to some 215 billion barrels (34.2 billion cubic metres) of oil and it also holds about 16 billion barrels (2.5 billion cubic metres) of recoverable condensate corresponding of about 230 billion barrels (37 billion cubic metres) of oil equivalent recoverable hydrocarbons.

The gas recovery factor of the field is about 70%, corresponding of about 1,260 trillion cubic feet (36×1012 m3) of total recoverable gas reserves which stands for about 19% of world recoverable gas reserves.

The estimates for the Iranian section are 500 trillion cubic feet (14×1012 m3) of natural gas in place and around 360 trillion cubic feet (10×1012 m3) of recoverable gas which stands for 36% of Iran's total proven gas reserves and 5.6% of the world's proven gas reserves.

The estimates for the Qatari section are 900 trillion cubic feet (25×1012 m3) of recoverable gas which stands for almost 99% of Qatar's total proven gas reserves and 14% of the world's proven gas reserves.

Since the field is a common field and the reservoir is highly homogenous, the ultimate recoverable reserves of each country may vary from this technical assessment which only considers the static data and does not include rate of gas migration. Therefore, it is better to say that the ultimate recoverable reserves of each country would be a factor of cumulative gas production by each of them.

The Iranian section also holds 18 billion barrels (2.9 billion cubic metres) of condensate in place of which some 9 billion barrels (1.4 billion cubic metres) are believed to be recoverable, while Qatari section believed to contains some 30 billion barrels (4.8×109 m3) of condensate in place and at least some 10 billion barrels (1.6 billion cubic metres) of recoverable condensate.

The South Pars Field was discovered in 1990 by National Iranian Oil Company (NIOC). The Pars Oil and Gas Company, a subsidiary of NIOC, has jurisdiction over all South Pars-related projects. Field development has been delayed by various problems - technical (i.e., high levels of mercaptans and foul-smelling sulfur compounds), contractual issues and, recently, politics.

Gas production started from the field by commissioning phase 2 in December 2002 to produce 1 billion cubic feet per day (28 million cubic metres per day) of wet gas. Gas is sent to shore via pipeline, and processed at Assaluyeh.

As of December 2010, South pars gas field's production capacity stands at 75 million cubic metres (2.6 billion cubic feet) of natural gas per day. Gas production at South Pars rose by nearly 30% between March 2009 and March 2010. The field's reserves are estimated at 14 trillion cubic metres (490 trillion cubic feet) of natural gas and 18 billion barrels (2.9 billion cubic metres) of natural gas condensates.

NIOC is planning to develop the field in 24 to 30 phases, capable of producing about 25 billion cubic feet (710 million cubic metres) to 30 billion cubic feet (850 million cubic metres) of natural gas per day. Each standard phase is defined for daily production of 1 billion cubic feet (28 million cubic metres) of natural gas, 40,000 barrels (6,400 m3) of condensate, 1500 tons of liquefied petroleum gas (LPG) and 200 tons of sulfur.

However some phases have some different production plans. Each of the phases is estimated to have an average capital spend of around US$1.5 billion, and most will be led by foreign oil firms working in partnership with local companies.

 

 

Leviathan partners in Israel to invest US$568 million in third gas pipeline

Partners in the Israeli offshore gas project Leviathan said on Sunday they would invest US$568 million to build a third pipeline that will allow increased natural gas production and exports.

The Leviathan consortium includes operator Chevron and Israel's NewMed Energy and Ratio Energies.

Leviathan, a deep-sea field with huge deposits, came online at the end of 2019 and produces 12 billion cubic meters (bcm) of gas per year for sale to Israel, Egypt and Jordan. The idea is to boost capacity to include sizeable volumes for Europe as it seeks to reduce dependence on Russian energy.

The new pipeline will connect the well with a production facility some 10 km off Israel's Mediterranean shore. It is due to come online in the second half of 2025, when production at Leviathan will jump to 14 bcm a year, the companies said.

"Expansion of the production capacity and future liquefaction via a designated liquefaction facility will allow us to supply more natural gas to the local, regional, and very soon also the global market," said NewMed CEO Yossi Abu.

In the longer-term, Leviathan production is expected to reach about 21 bcm a year. The group has announced plans for a floating liquefied natural gas (LNG) terminal off the Israeli coast with an annual LNG capacity of about 4.6 million tons, or 6.5 bcm.

Ratio CEO Yigal Landau said that record demand from last year continued into the first quarter, and that there was room to expand use of the export network in Jordan as well.

"We are currently exploring the option of upgrading transmission infrastructures in Jordan to transport additional gas quantities to markets in Jordan and Egypt," Landau said.