The Sultanate of Oman occupies a crucial geographical and geopolitical position in the oil and gas world. What China wants from Oman is to control all the major crude oil shipping chokepoints from the Middle East into Europe.
. The same deal also gives China a hold over the Bab al-Mandab Strait through which oil is shipped through the Red Sea towards the Suez Canal before moving into the Mediterranean and then westwards. This has been achieved as the Bab al-Mandab Strait lies between Yemen and Djibouti, over which China has also established a stranglehold.In the lead-up to a major meeting of GCC countries in December 2021, China had been using its standard chequebook diplomacy to expand its presence in Oman.
This pipeline plan was part of a broader co-operation deal made between Oman and Iran in 2013, extended in scope in 2014, and fully ratified in August 2015 that was centred on Oman’s importing at least 10 billion cubic meters of natural gas per year from Iran for 25 years. This was to have begun in 2017, with the amount equating to just less than 1 billion cubic feet per day and worth around US$60 billion at the time.
It would also allow for the advancement of Iran’s planned entry into the global liquefied natural gas market. This type of gas is quick to secure and to move to where it is needed, being available in its own spot market. Conversely, gas available through pipelines requires a lot more time and money being invested in infrastructure build-out and maintenance before supplies become available.
Another highly beneficial synergy for the China-Iran axis of this direct route from Iran to Oman would be that it would complement Iran’s sanctions-busting Goreh-Jask pipeline, also analysed in . The Goreh-Jask pipeline has the capacity to transport at least 1 million bpd of oil from its major oil fields and runs from Goreh in the Shoaybiyeh-ye Gharbi Rural District of Khuzestan Province 1100 kilometres to the port of Jask in Hormozgan province on the Gulf of Oman.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Expect More Oil And Gas IPOs In The Middle East | OilPrice.comADNOC’s recent public offering of a part of its gas business was a successful attempt to attract funds at a moment when hydrocarbon assets are highly valued
Read more »
I work in Aldi- when to visit our famous 'middle aisle' to get the best bargainsALDI is known for its competitively priced groceries and home essentials – but it’s a supermarket that also offers so much more. There’s the extensive range of affordable beauty a…
Read more »
Netflix's Luther movie features a 'middle finger' to James BondLuther: The Fallen Sun has settled the debate on whether Idris Elba should play the next James Bond once and for all.
Read more »
Cost of Living: East Midlands sees largest rise in house prices and rentsCouncil bosses say increases in 2022 have heaped pressure on social housing availability.
Read more »
Shropshire hit with 39-hour snow warning by Met Office as 'Beast from the East' approachesShropshire has been hit with a new warning for snow, with the 'Beast from the East' set to make its presence felt in the county.
Read more »