China Is Now Iran's Biggest Energy Buyer, Europe Steps Up Oil Activity [View All]

Asharq Al Awsat, News Report,
Translated by Jalal Ghazi, Link TV, Mosaic, Jan 20, 2005

Laws ban American companies from investing more than $20 million in Iran annually. However, a lot of other foreign investments are being sent there, and several gigantic projects are being planned to exploit Iranian natural gas, one of the largest reserves in the world. China has become the leader of the pack of energy importers from Iran.

Energy experts have been interested in the economic deals that were signed by China and Iran reaching a total value of $200 billion. Iranian Oil Minister Bijan Namdar Zanganeh said China will replace Japan as the number one oil and gas importer from Iran. In 2003 Iran’s oil exports to China reached $2.5 billion; the number was higher in 2004.

Iran is estimated to have 26.6 trillion cubic meters of gas reserves, which explains why one the biggest Chinese energy companies, Sinopec, was invited to prepare the planning of a project to develop the gigantic Yadavaran field. The project includes exploration, petrochemical products production and pipeline construction.

In return, Sinopec will import 250 billion tons of gas in the next 25 years worth $70-100 billion. This is the largest economic deal concluded between the two countries since 1996. China is also looking forward to exporting various products to the large Iranian market.

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