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Context of '2004: Iran Forced to Import Gasoline'

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July 26, 2001: Tabriz-Ankara Pipeline Opened

Despite a history of technical problems, the National Iranian Oil Company (NIOC) and the Turkish oil and gas company, Botas, open a 2,577 km pipeline gas pipeline from the northeastern city of Tabriz to Ankara. Iran becomes Turkey’s largest supplier of natural gas. Under the terms of the 1996 agreement (see August 12, 1996), Iran will supply Turkey with three billion cubic meters of gas a year, increasing to 10 billion cubic meters (353 billion cubic feet) by 2007. [BBC, 7/30/2001; US Department of Energy, 12/2001; Alexander's Gas & Oil Connections, 11/13/2002; AME Info, 2/9/2005]

Timeline Tags: US confrontation with Iran

Michael Ledeen joins with Morris Amitay, vice-president of the Jewish Institute for National Security Affairs; ex-CIA head James Woolsey; former Reagan administration official Frank Gaffney; former senator Paul Simon; and oil consultant Rob Sobhani to set up a group called the Coalition for Democracy in Iran (CDI). [Sunday Herald (Glasgow), 6/1/2003] CDI says it “fully agrees with President Bush’s inclusion of Iran in the ‘axis of evil’ and supports congressional initiatives to bring about needed change in Iran.” [Coalition for Democracy, 1/16/2004] The group has strong ties to Reza Pahlavi, the son of Shah Mohammad Reza Pahlavi, the US-backed leader of Iran who was removed from power by the 1979 Iranian Revolution. [International Herald Tribune, 6/6/2003]

Entity Tags: Coalition for Democracy in Iran, Paul Emile Simon, Morris J. Amitay, Frank Gaffney, James Woolsey, Michael Ledeen, Rob Sobhani, Reza Pahlavi

Timeline Tags: US confrontation with Iran, Neoconservative Influence

Russia is negotiating a long-term oil swap contract with the National Iranian Oil Company (NIOC). As part of the swap deal, Russia would send crude oil to Iran’s northern refineries for domestic consumption via a Chinese-built pipeline in exchange for an equal amount of Iranian oil being sent to Russia’s buyers at Iran’s Gulf oil terminals. The arrangement would make Russian oil available to non-European buyers at a competitive price by decreasing the cost of delivery. [Asia Times, 2/11/2003] United Press International will note in 2005 that the swap agreements are “a direct challenge to the Baku-Tbilisi-Ceyhan (BTC) Pipeline Project.” [United Press International, 6/29/2005]

Entity Tags: National Iranian Oil Company

Timeline Tags: US confrontation with Iran

2004: Iran Forced to Import Gasoline

Iran, despite being OPEC’s second largest oil exporter, is forced to import a billion dollars worth of gasoline due to demand outstripping the country’s limited refining capacity. “We use 50 million liters of fuel each day, 10 percent more than just a year ago,” Seyyed Reza Kasaizadeh, planning director for the national refining and distribution company NIORDC, tells the Persian daily Khorasan. Roughly a quarter of that amount is purchased by the government on the open market, and then sold to the public at the same subsidized price as domestically refined fuel—roughly 35 cents per gallon. [Iran Daily, 12/12/2004] In addition to the subsidy program’s actual costs, the program also represents “a huge opportunity cost, because they could be selling that at world prices,” Ben Faulks, an analyst for the London-based Economist Intelligence Unit, tells the Washington Post in mid-2005. Iran hopes that its nuclear energy program will solve this problem by reducing the country’s industrial oil consumption needs. The country would then be able to sell more of its oil at market prices and substantially increase its revenue. [Washington Post, 7/4/2005]

Entity Tags: Ben Faulks, National Iranian Oil Refining & Distribution Company, Seyyed Reza Kasaizadeh

Timeline Tags: US confrontation with Iran

Asadollah Mikaeeli, the director of planning at National Iranian Oil Derivatives Refining and Distribution Company, announces that since 1982, Iran has doubled its oil refining capacity from 750,000 to 1.6 million barrels per day (mmpd). Notwithstanding, the country continues to import many petroleum products like gasoline and diesel, he says. [Alexander's Gas & Oil Connections, 2/25/2004]

Entity Tags: National Iranian Oil Refining & Distribution Company, Asadollah Mikaeeli

Timeline Tags: US confrontation with Iran

Iranian Oil Minister Bijan Namdar Zanganeh signs a memorandum of understanding with his Indonesian counterpart Purnomo Yusgiantoro that Iran will build a $3 billion refinery in Indonesia. As part of the deal, Indonesia will receive 300,000 barrels per day of heavy crude and Tehran will get a 30 percent stake in PT Pertamina, Indonesia’s state oil company. National Iranian Oil Company and Pertamina will lead the four-year project, which Iran hopes will provide security for Iran’s market supply. [Islamic Republic News Agency, 3/16/2005; Bloomberg, 3/18/2005]

Entity Tags: Purnomo Yusgiantoro, Bijan Namdar Zanganeh, National Iranian Oil Company, PT Pertamina

Timeline Tags: US confrontation with Iran

The National Iranian Gas Company announces the awarding of a $2.2 billion contract to construct a gas refinery in the southwestern Iranian province of Khuzestan to a consortium headed by the British construction firm Costain Oil, Gas & Process (COGAP). [Costain, 6/24/2005 pdf file; Forbes, 6/24/2005]

Timeline Tags: US confrontation with Iran

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