Oil Minister Gholam Hossein Nozari said Monday that as long as a fair price is not stipulated in Iran’s contract with Crescent Petroleum of the UAE, Iran will not export gas to the Persian Gulf emirate.
“The Sirri-Assalouyeh gas pipeline has had suitable progress and at present some 150 km of the pipeline has been completed. If we cannot reach an agreement with the UAE (over pricing) the gas will be supplied inside the country,“ he told reporters on the sidelines of the Sixth International Exhibition of IranPlast Company, one of the pioneers in Iran’s plastic industry.
“Based on the latest surveys, the price of Persian Gulf Free on Board (FOB) gasoline is above $450/ton and the rumor that this price is lower than the price of non-subsidized gasoline sold inside Iran is not true.“
He also gave word of the possibility of Organization of Petroleum Exporting Countries (OPEC) holding another emergency meeting due to the consistent decline in international crude prices.

Positive Effect
“OPEC’s decision to cut 1.5 million barrels form its daily output had a positive effect on the market. Had the organization not done so, international oil prices would have fallen more steeply. But if prices continue to fall it is likely that OPEC will hold another emergency meeting,“ he said.
Commenting on the base price of oil considered in the 2009-2010 national budget plan, he said, “The price of oil in the next budget plan is being studied by the Planning Department of the Oil Ministry.
A price should be fixed that is attainable and can ensure national advancement and growth.“
Elsewhere Nozari said Iran has been affected the least by the ongoing global financial crises and if unnecessary spending is avoided the country can expect better times.

Turkmen Gas Issue
emAsked about Iran’s gas imports from Turkmenistan, the minister said, “Prices announced regarding Turkmen gas are unrealistic.
Negotiations are underway for a fair price. No specific price has yet been set.“
Referring to the issue of gas export as the focal point in this week’s negotiations with the Kuwaitis, he said, “On the sidelines of the recent OPEC meeting, talks were held with Kuwait’s energy minister regarding the export of Iranian gas to that country. Kuwait intends to purchase 500 billion cubic feet of gas per day from Iran.“ Preliminary works have been completed in this regard, he said without elaboration.
The minister gave word of facilitation of means for transporting Iranian gas to Pakistan.
“If India joins the deal, we will sign a trilateral contract for the peace pipeline,“ he noted.
Nozari emphasized that some impressive work had been done in the key petrochemical sector and 12 petrochemical units will come on stream this Iranian year (ends March 20).
“Presently 28 million tons of petrochemical products are produced per annum. We hope that based on the outlines of Vision 2025, we can increase annual output to 70 million tons,“ he concluded.

Photo by Hossein Fatemi

President Mahmoud Ahmadinejad on Monday inaugurated the Sabalan Combined Cycle Power Plant in Ardebil province, northwest Iran.
The project was conceived in 2005 with a budget of 93 million euros. The plant will supply part of the country’s power needs and contribute to self-reliance in the key electricity sector. Ahmadinejad along with several cabinet members and aides arrived in Ardebil Monday morning.

Deputy head of the Armed Forces Headquarters for plan and budget, Brigadier General Saeed Mojarradi said Monday a joint task force between the government and the armed forces will be established and headed by Secretary of the Supreme National Security Council (SNSC) Saeed Jalili.
“Elements who shoulder any responsibility in the arenas of foreign policy, national security and defense will be the members of the task force,“ Fars News Agency quoted him as saying.
He referred to the role and significance of the annual sessions of the officials of planning and budget of the armed forces and said, “We are on the threshold of a momentous nationwide drive for compiling the Fifth Five-Year Economic Development Plan (2010-15). In the year that the leader named the Year of Innovation and Prosperity, we are trying to amalgamate plan and budgetary considerations so that in an innovative move we can follow up on the topic of compilation of the (outlines of) the Fifth Plan pertaining to the armed forcesÉ
The armed forces, in coordination with other pillars of the country, have until January to present their outline for the Fifth Plan.“
Asked about the attempts of hostile powers to impose sanctions on Iran that restrict the activities of the armed forces, he said, “One of the issues considered by us is ways of managing the sanctions and planning ways for forging a cultural alliance, which actually necessitate systematic and smart plans.“

Israel again decided not to allow fuel into the Gaza Strip on Monday despite warnings that the territory’s power supply was on the verge of being completely cut off.
“After consultations with security officials and in view of the continued rocket fire, Israeli Defense Minister Ehud Barak has decided to maintain the closure of the border crossings and not to authorize the delivery of fuel,“ a ministry statement said, AFP reported.
“The issue of the reopening of the border crossings and the delivery of fuel supplies will be the subject of further consultations by the defense minister in the evening,“ the statement added.
A rocket fired from the Gaza Strip hit southern Israel earlier on Monday without causing any casualties or damage, an army spokeswoman said.
Palestinian officials in Gaza said on Sunday that power supplies had been reduced by one third in the absence of fuel and that electricity would be completely cut off in the coastal territory by Monday evening.
The European Commission, which funds the fuel deliveries to Gaza’s sole power plant, said it had been informed by Israel that they might resume on Tuesday.
“The Israel liaison office with the Palestinian territories told us that the deliveries to the power station could resume tomorrow,“ a spokeswoman said.
Barak ordered the sealing of the crossings after Palestinian militants again fired a rocket against southern Israel on Sunday, causing no casualties but threatening a shaky ceasefire.
Under the Egyptian-brokered truce, Israel agreed to open the vital crossings with Gaza, through which badly needed food and fuel are transported and the Islamists vowed to halt rocket attacks.
Last week, Gaza militants fired a barrage of rockets in retaliation for the killing of seven fighters by Israeli troops, in the worst incidents since the truce went into effect on June 19.
Israel imposed a blockade on the impoverished territory after Hamas seized power, ousting forces loyal to Palestinian Authority chief Mahmud Abbas.

The proposed US-Iraqi security pact removes language authorizing Iraq to ask US soldiers to stay beyond 2011 and bans cross-border attacks from Iraqi soil, according to a copy of the draft obtained Monday by AP.
The latest draft, sent Thursday to Prime Minister Nuri Al-Maliki, also strengthens language regarding Iraqi sovereignty but does not appear to make significant changes in the limited legal authority granted to Iraq to prosecute US soldiers for major crimes committed off post and off duty.
But it was unclear whether the changes would be enough to silence critics Ñ especially among the majority Shiite community Ñ who have complained the deal favors US interests over Iraq.
Maliki plans to show the draft to President Jalal Talabani and the two vice presidents. Later, he will submit it to the Cabinet and if the ministers agree, he will forward it to parliament for a final decision.
That process could take more than a month.
In an added complication, the Sunni vice president, Tariq Al-Hashemi, has called for a national referendum Ñ which would be all but impossible to arrange before the Dec. 31 expiration of the UN mandate that allows US troops to operate legally.
Without an agreement or a new U.N. mandate, US military operations would have to stop as of Jan. 1.
The new draft states that US troops must be out of Iraqi cities by June 30 and leave the country entirely by Dec. 31, 2011. The previous draft authorized the Iraqi government to ask US troops to stay beyond that for training and other assistance.
But the current draft states simply that “United States forces shall withdraw from all Iraqi territory no later than Dec. 31, 2011.“
The draft also recognizes the right of each country to remove US troops before that deadline.
President-elect Barack Obama pledged during the campaign to bring all combat troops home within 16 months of his inauguration Jan. 20. An Iraqi official said Obama had been briefed on the current draft and raised no objection.
The official spoke on condition of anonymity because the information is sensitive.
The draft agreement Ñ 24 pages in the English version Ñ also states that “Iraqi land, sea and air shall not be used as a launching or transit point for attacks against other countries.“
Iraq insisted on the addition after last month’s U.S. raid into neighboring Syria and in a bid to ease fears in Iran, which strongly opposes the deal.
As a further assurance, the deal is now officially an agreement “on the withdrawal of United States forces from Iraq“ and the “organization of their activities during their temporary presence.“
The deal had been envisioned as establishing a long-term security relationship when it was first discussed between Maliki and President Bush last year.