xvi
Western Route to the West
The Baku-Naworsik (1500 km) oil pipeline, the Baku-Supsa oil pipeline (920 km),
the Baku-“Tbilisi-Ceyhan oil pipeline” (1730 km), the Tengiz-Nevorusique oil
pipeline (1600 km), and Baku-Erzurum gas pipeline are the most important transmission lines of available to Western markets orchestrated by Azerbaijan, Georgia,
and Turkey, the countries the US has developed the closest relationship in the region
(Eteat and Nosratı 2008:12).
Eastern Route Russia-Kazakhstan-China
In an agreement signed in September 1977 between the Prime Minister of China
and the Kazakh officials, a 3000 km pipeline, with a utilization time of 60 months
and at a cost of $9.5 billion, was agreed upon to link China with Chechnyan
resources. This route will be the most costly pipeline, with 2000 km crossing the
expanse of Kazakhstan. The Chinese estimate the cost of implementing the project
at $3.5 billion. Although the reality will unquestionably be higher than this figure, it
may prove testament to China’s enthusiasm for the project on the lines of security.
This pipeline would deliver 25 million tons (500,000 bpd) of Kazakhstani crude oil
to China. Similarly, the Turkmen Ministry of Oil has been seeking to build a gas
pipeline stretching to China and Japan (www.ensani.ir 2017). The pipeline, which is
8000 km long, costs more than $22 billion. It is clear that this route gives a clear
strategic advantage to China, yet in terms of technical difficulty, both routes have
issues in terms of duration and costs, with the pipeline stretching from mountains
through desserts over terrain which experiences harsh winters and blistering summers, putting stress on maintenance and pumping equipment. This could easily
result in cuts in flow, especially across the Tibetan Plateau, which would increase
the cost of oil pipelines exponentially (www.ensani.ir 2017).
The only Kazakh-China oil pipeline currently active is the Atasu-Alashankou,
which constitutes around 1000 km (960 km) and was launched in December 2005.
The pipeline initially transferred 10 million tons (210,000 bpd) of Kazakhstani oil
to China. The cost of the construction of this oil pipeline, which was jointly funded
by the National Petroleum Corporation (CNPC) and the State Oil Company of
Kazakhstan (Caspian Gas), was $700 million. It connects the Atasu oil field located
in Kazakhstan to the Alashankou area in the province of Xinjiang in Western China
(www.ensani.ir 2017).
South Route: Iran to the Persian Gulf
Iran represents the interface between the Caspian Sea and the Persian Gulf and is
located at the center of 75% of the world’s oil and gas reserves, controlling 10% of
its oil reserves and 15% of gas reserves. It is the country with the most cost-effective
route to build oil and gas pipelines to carry the oil and gas from the Caucasus and
Introduction
Western Route to the West
The Baku-Naworsik (1500 km) oil pipeline, the Baku-Supsa oil pipeline (920 km),
the Baku-“Tbilisi-Ceyhan oil pipeline” (1730 km), the Tengiz-Nevorusique oil
pipeline (1600 km), and Baku-Erzurum gas pipeline are the most important transmission lines of available to Western markets orchestrated by Azerbaijan, Georgia,
and Turkey, the countries the US has developed the closest relationship in the region
(Eteat and Nosratı 2008:12).
Eastern Route Russia-Kazakhstan-China
In an agreement signed in September 1977 between the Prime Minister of China
and the Kazakh officials, a 3000 km pipeline, with a utilization time of 60 months
and at a cost of $9.5 billion, was agreed upon to link China with Chechnyan
resources. This route will be the most costly pipeline, with 2000 km crossing the
expanse of Kazakhstan. The Chinese estimate the cost of implementing the project
at $3.5 billion. Although the reality will unquestionably be higher than this figure, it
may prove testament to China’s enthusiasm for the project on the lines of security.
This pipeline would deliver 25 million tons (500,000 bpd) of Kazakhstani crude oil
to China. Similarly, the Turkmen Ministry of Oil has been seeking to build a gas
pipeline stretching to China and Japan (www.ensani.ir 2017). The pipeline, which is
8000 km long, costs more than $22 billion. It is clear that this route gives a clear
strategic advantage to China, yet in terms of technical difficulty, both routes have
issues in terms of duration and costs, with the pipeline stretching from mountains
through desserts over terrain which experiences harsh winters and blistering summers, putting stress on maintenance and pumping equipment. This could easily
result in cuts in flow, especially across the Tibetan Plateau, which would increase
the cost of oil pipelines exponentially (www.ensani.ir 2017).
The only Kazakh-China oil pipeline currently active is the Atasu-Alashankou,
which constitutes around 1000 km (960 km) and was launched in December 2005.
The pipeline initially transferred 10 million tons (210,000 bpd) of Kazakhstani oil
to China. The cost of the construction of this oil pipeline, which was jointly funded
by the National Petroleum Corporation (CNPC) and the State Oil Company of
Kazakhstan (Caspian Gas), was $700 million. It connects the Atasu oil field located
in Kazakhstan to the Alashankou area in the province of Xinjiang in Western China
(www.ensani.ir 2017).
South Route: Iran to the Persian Gulf
Iran represents the interface between the Caspian Sea and the Persian Gulf and is
located at the center of 75% of the world’s oil and gas reserves, controlling 10% of
its oil reserves and 15% of gas reserves. It is the country with the most cost-effective
route to build oil and gas pipelines to carry the oil and gas from the Caucasus and
Introduction