Iraq and Iran’s Oil and Gas Pipeline Politics
By Elie Chalhoub | Al-Akhbar | March 14, 2013
Away from the region’s headlines and wars, plans are being methodically put in place that could redraw the strategic map of the Middle East, erasing one of the region’s key colonial-era features.
Recent moves by Iran and Iraq to press ahead with the construction of a series of new oil and gas export pipelines could be attributed to Iran’s bid to counter international sanctions. The planned pipelines could also reflect Iraq’s economic recovery or perhaps pressure from oil companies for new export routes.
There may be some truth to these explanations. But a closer look makes clear that these schemes are related.
The short-term aims are evident. They include trying to lure Jordan into the region’s “resistance” axis and reducing American influence on Iran’s eastern neighbor Pakistan.
But the long-term objective is more ambitious: to connect the Middle East by way of a web of economic ties that binds them into a regional partnership whose mainstays are Iran and Iraq.
Baghdad is making it increasingly clear where it stands in terms of its regional alignment. In recent months, it has openly supported Syrian President Bashar al-Assad’s regime in Damascus, clashed with Ankara, reached out to Cairo, and been at odds with Riyadh and Doha.
The pipeline schemes also underscore Iraq’s chosen course. The country has opted to assume a role consistent with its historical legacy and its economic and strategic clout.
Iran Lures Pakistan
The latest move in this regard was Monday’s pipeline inauguration by Iranian President Mahmoud Ahmadinejad and Pakistani President Asif Ali Zardari. The pipeline will transport Iranian natural gas to Asian markets via Pakistani territory, providing Pakistan with desperately needed energy supplies.
Negotiations between the two countries began almost a decade ago, but were frequently stalled due to opposition from the US. Washington has long sought to thwart any scheme for transporting oil and gas from or through Iran.
During that period, Iran completed its section of the pipeline from the Pars gas field in the south of the country to the Pakistani border town of Multan. It has a capacity of 750 million cubic meters per day.
Tehran has undertaken to cover a third of the $1.5 billion cost of the 780-km Pakistani section of the pipeline, with the Pakistani government funding the rest.
Wooing Jordan and Egypt
Meanwhile, Iraq and Jordan have begun work on building parallel oil and gas pipelines connecting southern Iraq to the Red Sea port of Aqaba, with the possibility of extending the link to Egypt.
The 1,690-km line, which will take two to three years to complete, is to run from Basra to Haditha west of Baghdad then into Jordanian territory and south to Aqaba. Contracts for the Jordanian portion are to be awarded to companies on a build-operate-transfer basis, with ownership reverting to the Iraqi government after 20 years.
Under the agreement, the oil pipeline will provide Jordan with 150,000 barrels of Iraqi oil per day for domestic use at preferential prices (around $20 dollars per barrel below market). Apart from putting an end to Jordan’s chronic fuel crises, the scheme is expected to benefit the country to the tune of $3 billion per year.
A planned second phase of the project envisions the building of a western spur from Haditha through Syrian territory to pump 1.25 million barrels of oil per day to the Syrian Mediterranean port of Banias.
Sustaining Syria
Meanwhile, plans are being developed for a 5,000-km link to transport Iranian gas to Iraq and Syria and on into Europe, providing Iran with an export route that bypasses the Gulf.
Iran and Iraq are due to sign an agreement on the first phase of the project on 20 March. This would enable Iran to pump 25 million cubic meters of gas a day to Iraq. Proposed extensions to the line envision it supplying Jordan and Lebanon with gas.
Iran shares the Pars field – the world’s largest gas field with an estimated 14 trillion cubic meters of gas, around 8 percent of total proven world reserves – with Qatar. The emirate recently unveiled its own plans for a pipeline to carry gas through Saudi, Jordanian, Syrian and Turkish territory to Europe.
Related articles
- US threatens Pakistan with sanctions over gas pipeline deal with Iran (alethonews.wordpress.com)
- Iran-Iraq-Syria Gas Pipeline Project Agreement Finalized (alethonews.wordpress.com)
- Zardari, Ahmedinijad inaugurate Pak-Iran gas pipeline project (nation.com.pk)
Iran eyes stopping oil exports: Ahmadinejad
Press TV – March 14, 2013
Iranian President Mahmoud Ahmadinejad says the Islamic Republic aims to reach the point where it would no longer need to export its crude oil.
“We (Iran) plan to get to the point where we would not need to export crude oil anymore. The number of our oil refineries should double in such a case, and it would be of great benefit to our country,” Ahmadinejad said on Thursday.
The Iranian president was speaking at the inauguration ceremony of the country’s biggest gasoline plant at Shazand Imam Khomeini Refinery in the central Markazi Province. He said the project was proof that Iran has achieved self-sufficiency in oil refinery construction and does not need foreign assistance in this regard.
Ahmadinejad further called on the Iranian oil industry officials to make their utmost efforts to design and build fully indigenous refineries and even export their expertise.
He also criticized the West’s illegal unilateral sanctions on Iran’s energy sector, saying that the bans show the bullying nature of the countries which have adopted them.
The Iranian president stated that refining Iranian crude oil in domestic refineries will generate three to four times more revenue for Tehran than the sale of crude oil, adding that the production of petrochemicals inside the country will also yield five to ten times more earnings than oil exports.
Shazand Imam Khomeini Refinery contains the country’s biggest gasoline production hub with a production capacity of 16 million liters (ml) of gasoline per day.
Production of premium gasoline will increase from the current amount of 1.2 million liters to 3.2 million liters with the opening of the facility.
Following the gasoline plant’s inauguration, its liquefied petroleum gas (LPG) production will increase from 500 tons per day to 2,000 tons.
The treatment facility produces gasoline, liquefied gas, propylene, kerosene, gas oil as well as fuel oil and tar.
Related article
- Iran engineers capable of building refineries abroad (alethonews.wordpress.com)
Colombia: President Santos Announces ‘Profound Changes’
By Kari Paul | The Argentina Independent | March 14, 2013
Colombian President Juan Manuel Santos announced yesterday that he will initiate “an agenda of transformation” in the 16 months he has left in office.
This announcement comes as Santos continues peace negotiations with Revolutionary Armed Forces of Colombia (FARC). Congress announced last week that a resolution will be made with the armed revolutionary group by August.
“Our vision is of a just, modern, and safe Colombia,” Santos said, according to El Tiempo.
He added that disarming FARC is not enough and that the system must change in order to avoid similar situations in the future.
“Some people continue to be stuck in the past, selling us a vision of a Colombia condemned to another 50 years of violence, paralysed by fear and without the capacity to imagine anything more than what it has always been,” he said. “However we, the large majority, believe in our future.”
Officials and Santos finalised this new “comprehensive government strategy” in a meeting Monday.
Beginning today, union directors and business owners will begin meeting to design and begin this project that Santos called “an emergency plan for growth and productivity.”
Beyond lowering rates of violence in the country, the president announced goals of a more “modern Colombia,” including plans to build 317 kilometres of highways this year.
Santos added that he is “committed… to making it so that Colombia can say ‘we have peace’ before leaving the government.”
Armistice’s Day Is Done–Contrary to NYT
By Jim Naureckas | FAIR | March 13, 2013
The New York Times (3/8/13), writing about Korean tensions, reported:
The North said this week that it considered the 1953 armistice agreement that halted the Korean War to be null and void as of Monday because of the joint military exercises. The North has threatened to terminate that agreement before, but American and South Korean military officials pointed out that legally, no party [to an] armistice can unilaterally terminate or alter its terms.
“Nonsense,” says Francis Boyle, professor of international law at the University of Illinois (Institute for Public Accuracy, 3/13/13):
An armistice agreement is governed by the laws of war and the state of war still remains in effect despite the armistice agreement, even if the armistice text itself says additions have to be mutually agreed upon by the parties. Termination is not an addition.
Boyle pointed to both U.S. military regulations and international law as evidence that the Times’ claim was wrong:
Under the U.S. Army Field Manual 27-10 and the Hague Regulations, the only requirement for termination of the Korean War Armistice Agreement is suitable notice so as to avoid the charge of “perfidy.” North Korea has given that notice. The armistice is dead.
The Army Field Manual states, “In case it [the armistice] is indefinite, a belligerent may resume operations at any time after notice.” Article 36 of the Hague Regulations says:
An armistice suspends military operations by mutual agreement between the belligerent parties. If its duration is not fixed, the belligerent parties can resume operations at any time, provided always the enemy is warned within the time agreed upon, in accordance with the terms of the armistice.
The New York Times should let its readers know that it allowed anonymous officials to mislead them.
Chavez in the Crosshairs
By Laura Carlsen | Americas Program | March 12, 2013
You could almost hear the sigh of relief coming out of Washington at the news of Hugo Chavez’s death on March 5.
President Obama issued a brief statement that failed even to offer condolences, forcing a senior State Department official to patch over the evident callousness and breach of diplomacy by offering his personal condolences the following day.
Within moments of Chavez’s death, commercial media and mouthpieces for the U.S. government were verbally dancing on his grave and predicting the imminent demise of Chavismo—Chavez’s political legacy in Venezuela and abroad.
Time headlined its article “Death of a Demagogue.” The New York Times, which bent over backwards to minimize Chavez’s overwhelming victory in Venezuela’s October elections—and later to portray his battle with cancer as a cover-up, mimicking opposition claims—proclaimed that Chávez’s death“casts into doubt the future of his socialist revolution” and “alters the political balance not only in Venezuela, the fourth-largest supplier of foreign oil to the United States, but also in Latin America”—and this in a news article with no sourcing provided.
The Inter-American Dialogue, a U.S. think tank, concluded that “Chavez’s legacy, and the damage he left behind, will not be easily undone,” and predicted that the social gains and regional institutions Chavez built over his political lifetime will soon fall apart and things will soon return to normal—that is, with the United States back in the hemispheric driver’s seat.
Congressman Ed Royce (R-CA) came right out and said “Hugo Chávez was a tyrant who forced the people of Venezuela to live in fear. His death dents the alliance of anti-U.S. leftist leaders in South America. Good riddance to this dictator.”
So why did Washington hate this guy so much?
It never helped that the South American president had a penchant for insulting his adversaries personally. But one supposes that diplomacy rises above name-calling, even if the other guy did it first. The anti-Chavez current in Washington goes far deeper than personal enmity or even political differences.
What scared Washington most about Chavez was not his failures or idiosyncrasies. It was his success.
The official reasons given for demonizing Hugo Chavez don’t hold water. Chavez is accused of restraining freedom of the press in a nation known for its ferociously anti-Chavez private media. And while his Yankee critics called him a dictator, Chavez and his policies won election after election in exemplary electoral processes. You can disagree with his reform to permit unlimited terms in office, but this is the practice of many nations deemed democratic by the U.S. government and considered close allies. And the criticisms of Chavez’s social programs as “patronage” cannot ignore the millions of lives tangibly improved.
Before Chavez turned Venezuela away from the neoliberal model, the nation was a basket case. But throughout his tenure, social indicators that measure real human suffering showed steady improvement. Between 1998, when he was first elected, to 2013 when he died in office, people living in poverty dropped from 43 percent of the population to 27 percent. Extreme poverty dropped from 16.8 percent of the population to 7 percent. According to UNESCO, illiteracy—nearly 10 percent when Chavez took office—has been eliminated. Chavez also reduced childhood malnutrition, initiated pensions for the elderly, and launched education and health programs for the poor.
Venezuela’s human development ranking subsequently climbed significantly under Chavez, reaching the “high” human development category. The programs that Washington scorned as “government handouts” made people’s lives longer, healthier, and fuller in Venezuela.
Now that Chavez is dead, the U.S. press has revived the State Department’s practice of designating the “good left” and the “bad left” in Latin America. Chavez, of course, embodied the “bad left,” while Brazil’s Lula was unilaterally and unwillingly designated the “good left”.
Yet it was Lula da Silva who defended his friend and made the case for Chavez’s lasting positive legacy in the pages of the New York Times. He eulogized the leader and predicted, “The multilateral institutions Mr. Chávez helped create will also help ensure the consecration of South American unity.”
In fact, Chavez’s success in building institutions for alternative regional integration is one of the big reasons Washington hated him. The self-declared anti-capitalist led Venezuela as it joined with regional powerhouse Brazil and other southern cone countries to make a bid to crack the Monroe Doctrine. Along with Andean nations, they also sought, in varying degrees, to wrest control of significant natural resource wealth from transnational corporations to fund state redistribution programs for the poor.
In 2005, Chavez helped scuttle the U.S. goal of a Free Trade Area of the Americas. Later he spearheaded the formation of the Union of South American Nations (Unasur) in 2008. As a Latin American alternative to the U.S.-dominated Organization of American States, the 12-member Unasur proved its value by successfully mediating the Colombia-Ecuador conflict and the Bolivian separatist crisis in 2008. In 2010, Chavez again played a major role with the creation of the Community of Latin American and Caribbean States, made up of hemispheric partners, excluding the United States and Canada.
The Bank of the South, also promoted by Chavez, seeks greater South-South monetary and financial autonomy. As Lula writes in his editorial on Chavez´s death, the Bank offers an alternative to the World Bank and IMF, which “have not been sufficiently responsive to the realities of today’s multipolar world”.
With stops and starts, these initiatives have moved regional integration forward outside the historic model of U.S. hegemony.
U.S. Moves and the Principle of Self-Determination
What happens next? Venezuela held an emotional funeral on March 8 and is planning for April elections. Most predict that Vice President Nicolas Maduro, selected by Chavez as his successor, will win easily. He has the advantage of Chavez’s blessing: a common slogan in Caracas these days is “Chavez, te juro, que voto por Maduro” (“Chavez, I swear, my vote is for Maduro”). Another sign that Chavismo lives on was the thousands of people at the funeral chanting “Chavez didn’t die; he multiplied.”
The State Department views dimly the prospect of an improved U.S.-Venezuela relationship under Maduro. On March 6, the State Department held a press call on which “Senior Official One” (a State Department practice for “background” when its officials apparently don’t want to be identified with their own public statements) said the department was optimistic following Chavez’ death, but that “yesterday’s first press conference, if you will, the first address, was not encouraging in that respect. It disappointed us.”
He referred to a 90-minute address by Maduro, stating that “the enemy” attacked Chavez’s health. The Venezuelan government also announced the expulsion of two U.S. military personnel in Venezuela, allegedly for having contacted members of the Venezuela military to stir up an insurrection.
The State Department noted that it plans “to move ahead in this relationship” by holding conversations in areas of common interest, citing “counternarcotics, counterterrorism, economic or commercial issues including energy.” It added, “We are going to continue to speak out when we believe there are issues of democratic principle that need to be talked about, that need to be highlighted.”
During the Chavez years, U.S. officials and the press went into contortions to avoid congruency with the basic principle that democracy is measured by elections. With Chavez having indisputably won some thirteen elections, the U.S. government applied new criteria to Venezuela along the lines of “democracy can be wrong.” Despite his broad-based support, many went so far as to dub Chavez a “dictator.”
The U.S. government’s commitment to democracy falters when Washington doesn’t like the results. It supported the failed coup against Chavez in 2002 and blocked the return of Honduras’s elected president after the 2009 coup there.
Now all eyes will be on Washington to see whether it upholds another value reiterated by President Obama—the right to self-determination. Will U.S. “democracy-promotion programs” under NED, IRI, and other regime-change schemes resist the temptation to meddle in Venezuela’s April 14 elections? Venezuela without Chavez will be a test of moral and diplomatic integrity for the second Obama administration and John Kerry’s State Department, and a challenge for Congress and the citizenry to monitor and prevent covert activities that interfere with the exercise of democracy.
Related articles
- Unprecedented Show of Support and Honor at the Historic Funeral of Hugo Chávez (alethonews.wordpress.com)
- Chavez Is Dead, the Media Are Alive and Kicking (alethonews.wordpress.com)
- U.S. and Canada Isolated as Latin American Leaders Acknowledge Chávez’s Regional Leadership (venezuelanalysis.com)
CHAVEZ IS DEAD, THE MEDIA ARE ALIVE AND KICKING
By Pablo Navarrete | Latin America Bureau | March 13, 2013
On Tuesday 5 March, at the age of 58, Venezuelan president Hugo Chávez lost his almost two-year battle with cancer and passed away. Within seconds of the news being announced, the wheels of the global media bandwagon went into overdrive, with largely unsurprising results, in both the US and British media. At the most distasteful end of the spectrum was the headline in the New York Post, the paper with the 7th highest circulation in the US, that read ‘Off Hugo! Venezuela bully Chavez is dead’.
New York Post Cover on Chávez
Other US media followed closely behind. ‘Death of a Demagogue’ ran a headline on the website of Time, the world’s biggest selling weekly news magazine. These and other US media reaction were included in a piece by the US media watchdog Fair and Accuracy in Reporting (FAIR) that also examined the distorted, often hysterical, US media coverage of Chávez during his presidency. It’s worth recalling that following the 2002 US-supported coup that briefly removed Chavez from the presidency the New York Times declared that Chavez’s “resignation” meant that “Venezuelan democracy is no longer threatened by a would-be dictator.”
Following Chávez’s death, the antipathy towards a president that had so vehemently challenged the actions and interests of the United States was also evident in the British media. Rightwing outlets displayed the usual cynical disdain that had characterised their reporting of Chávez’s presidency, although Nicolas Maduro, Chávez’s former vice-president, the current interim president and the government’s candidate for the April 14th presidential election, was also now in the firing line. In the UK’s biggest selling broadsheet, the rightwing Daily Telegraph, its chief foreign correspondent David Blair described Maduro’s role as foreign minister under Chavez in the following terms: “Mr Maduro was the obedient enforcer of his master’s highly personal foreign policy”. For Blair, Maduro, rather than responsibly representing his government’s foreign policy, was “a loyal purveyor of ‘Chavismo’ around the world”.
The ‘liberal’ left in Britain
Britain’s liberal-left media also offered a timely reminder of where their loyalties lay in relation to Chavez, whose democratic mandate included presiding over 15 national elections since he took office in February 1999, a greater number of elections than were held during the previous 40 years in Venezuela. In a remarkable editorial, The Independent newspaper opined:
“Mr Chavez was no run-of-the-mill dictator. His offences were far from the excesses of a Colonel Gaddafi, say. What he was, more than anything, was an illusionist – a showman who used his prodigious powers of persuasion to present a corrupt autocracy fuelled by petrodollars as a socialist utopia in the making. The show now over, he leaves a hollowed-out country crippled by poverty, violence and crime. So much for the revolution.”
This from a newspaper that in June 2009, following a military coup that overthrew the democratically elected government of President Manuel Zelaya in Honduras, ran an editorial that included the following:
“The ousting of the Honduran President Manuel Zelaya by the country’s military at the weekend has been condemned by many members of the international community as an affront to democracy. But despite a natural distaste for any military coup, it is possible that the army might have actually done Honduran democracy a service.”
The Independent’s competitor in the UK’s liberal-left newspaper market, The Guardian, showed a similarly hostile stance towards Chavez during his presidency. In a piece on the New Left Project website examining the critical UK media coverage of Chavez following his death, Josh Watts noted how the anti-Chavez bias of Rory Carroll, a Guardian journalist and its former Latin America correspondent, “has been extensively documented”. As Samuel Grove noted in a damming 2011 article, Carroll’s Latin America coverage “has attracted widespread criticism for its selectivity and double standards, brazen anti-left bias, and above all slavish loyalty to Western interests”. There is now surely a book’s worth of material exposing Carroll’s distorted Venezuela coverage.
Carroll has managed to take his agenda beyond the confines of The Guardian. For example, in an Al Jazeera English debate on the continued demonisation of Chavez by the Western media that took place three days after Chavez’s death, Carroll repeatedly tried to present Venezuela under Chavez as an economic failure. He repeated this line of attack in a BBC 3 radio interview in late February, where he accused the Chavez government of being responsible for “decay, ruin, waste” in relation to the economy. Contrast this with the rigorous reports on the socio-economic changes under the Chavez presidency by the Washington-based think tank, the Center for Economic and Policy Research (CEPR), which completely undermine Carroll’s narrative of economic failure.
This fact-based approach to appraising elements of the Chavez legacy has not been lost on The Guardian’s associate editor Seumas Milne, who referenced CEPR’s latest report when he tweeted: “Media claims #Chavez ruined #Venezuela‘s economy absurd: here are the facts on growth, unemployment, poverty http://bit.ly/13Nnwno @ceprdc”
It was precisely these socio-economic gains, especially for those in the low-income neighbourhoods known as barrios that encircle Caracas and other Venezuelan cities and who formed Chávez’s support base, that lay behind his popularity and his repeated electoral victories.
Focus on denigrating the individual
Rather than try to explain Chávez’s appeal to large sectors of the Venezuelan population or understand the process of radical change underway in the country, the West’s media class preferred to focus almost entirely on the figure of Chávez. It was precisely this narrative that was so effective in discrediting the Venezuelan process through concealing the role of collective agency, silencing the people from below, and rendering them insignificant. While the mainstream media routinely ignores the voices of the government’s grassroots supporters, they have been instrumental in driving the Venezuelan process forward and should be at the centre of the story.
Thus, when we contrast Chávez’s popularity at home with the open hostility with which Western political elites viewed him, we’re left questioning the motivation behind the anti-Chávez mass media campaign that has systematically misrepresented events in Venezuela.
John Pilger is right when he writes:
“Never has a country, its people, its politics, its leader, its myths and truths been so misreported and lied about as Venezuela.”
Even though Chávez is dead, his vilification by the US and UK media is alive and kicking.
Pablo Navarrete is a LAB correspondent and a PHD student at Bradford University in the UK, researching the political economy of the Chavez presidency. He is also the director of the documentary ‘Inside the Revolution: A Journey into the Heart of Venezuela’ (Alborada Films, 2009). You can watch the documentary online here.