Tuesday, June 17, 2008
Planned Gulf state pipeline would bypass Iran, Straits of Hormuz
ABU DHABI — The United Arab Emirates has acknowledged a delay in
plans to construct an oil pipeline designed to avoid the Iranian-dominated
Strait of Hormuz.
A recent report by the Washington Institute has warned that Gulf Cooperation Council states cannot delay plans to establish pipeline routes that bypass the Strait of Hormuz, according to the current edition of Geostrategy-Direct.com.
In a report titled, "Energy in Danger: Iran, Oil, and the West," author Simon Henderson said Iran could block a daily oil flow of as much as 17 million barrels, or 20 percent of world oil demand.
"Alternative pipeline routes are an absolute requirement if the Strait of Hormuz chokepoint is not to be a growing concern," the report said.
IPIC said work on the 320-kilometer pipeline, which would
pump oil to a port in the Gulf of Oman, has already begun.
Executives did not cite the reason for the delay. But industry sources
said the delays stemmed from a shortage of construction material, workers
and bureaucracy.
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