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Jim Franklin

Al Jazeera English - Middle East - S Korea to build UAE nuclear plants - 0 views

  • South Korea has won a contract to set up four nuclear reactors for the oil-rich United Arab Emirates (UAE).
  • The reactors - the first nuclear plants in the Gulf Arab region - are scheduled to start supplying electric power to the UAE grid in 2017.
  • The UAE's choice must have been based on strictly commercial terms because in terms of political clout in the region it's nil," Al Troner, the president of Houston-based Asia Pacific Energy Consulting, said.
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  • But the UAE has already pledged to import the fuel it needs for reactors - rather than attempting to enrich uranium, the fuel for nuclear power plants - to allay fears about uranium enrichment facilities being used to make weapons-grade material.
Ed Webb

U.N. Is Preparing for the Coronavirus to Strike the Most Vulnerable Among Refugees, Migrants, War Victims, and the Internally Displaced - 0 views

  • United Nations is preparing to issue a major funding appeal for more than $1.5 billion on Wednesday to prepare for outbreaks of the new coronavirus in areas suffering some of the worst humanitarian crises in the world, including Gaza, Myanmar, Syria, South Sudan, and Yemen, according to diplomatic and relief officials familiar with the plan
  • the request—which would be in addition to ongoing humanitarian operations—comes at a time when the world’s leading economies are reeling from the economic shock induced by one of the most virulent pandemics since the 1918 Spanish flu
  • “Some of the biggest donors are seeing global recession about to hit them,” said one senior relief official. “How generous are they going to be when they have a crisis looming in their own backyards?”
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  • U.N. relief officials and aid organizations are bracing for what they fear could be a cataclysmic second phase of the pandemic: spreading in the close-quarters encampments of the world’s more than 25 million refugees and another 40 million internally displaced people.
  • More than 3 billion people lack access to hand-washing facilities, depriving them of one of the most effective first lines of defense against the spread of the coronavirus, according to UNICEF
  • the effort to ramp up an international aid response is being hampered by the quest to ensure the safety of international staff. Those concerns have been amplified by the announcement last week that David Beasley, the executive director of the Rome-based World Food Program, had been infected with the coronavirus. Some international relief agencies have recalled senior field officers, fearing they could be infected.
  • Konyndyk, who worked on the response to the Ebola epidemic in West Africa for the U.S. Agency for International Development, said that U.N. and relief agencies are having to balance ensuring the health of their own staff with delivering care to needy communities.
  • “You would have a hard time designing a more dangerous setting for the spread of this disease than an informal IDP settlement,” he said. “You have a crowded population, very poor sanitation … very poor disease surveillance, very poor health services. This could be extraordinarily dangerous … and I don’t think that’s getting enough global attention yet.”
  • In conflict-riven countries from Afghanistan to South Sudan to Yemen, dismal health care infrastructures are already overburdened after years of fighting
  • After five years of war, with millions of people on the brink of famine, Yemen’s population is more vulnerable to a coronavirus outbreak than those of most other countries. The conflict has left most of the country’s population effectively immunocompromised,
  • “For many population groups, living in overcrowded conditions, social distancing is a challenge or impossible,” according to the Assessment Capacities Project report. Many countries that host refugee camps, such as Afghanistan and Bangladesh, are likely to be overwhelmed by the health needs of their own citizens. Nations with weak health systems “may struggle to screen, test, and contain the epidemic for the host population let alone the refugees,”
  • In Gaza, the U.N. Relief and Works Agency (UNRWA), which provides primary care for about 70 percent of the territory’s more than 1.8 million people, is bracing for the likely arrival of the coronavirus in one of the most densely populated place in the world. The U.N. agency—which the Trump administration defunded last year and has sought to dismantle—has some 22 medical clinics in Gaza, putting it on the front lines of the defense of the coronavirus.
  • “I’m told that there are 60 ICU beds in the hospitals,” Matthias Schmale, the director of Gaza’s UNRWA operations, told Foreign Policy. “If there is a full-scale outbreak the hospital sector won’t cope.”
  • The leaders of major relief organizations are pressing donors to grant them greater flexibility to redirect funding from existing programs that are likely to be paralyzed by the pandemic and use that money for programs—including clean water and sanitation projects—that could help stem the crisis.
  • “As bad as it is now in the well-organized and affluent north, with health systems, good sanitation, and big infrastructure, imagine how it will be when it will hit crowded camps with refugees and displaced people,” said Egeland, who spoke by telephone from quarantine in Norway.
  • sweeping U.S. and U.N. economic sanctions imposed on governments in Iran, North Korea, and Venezuela are hampering relief efforts.
  • Egeland acknowledged that most U.N. sanctions regimes, including those for Iran and North Korea, include exemptions for the import of humanitarian goods. But the sanctions have scared financial institutions from providing vital financial services to relief agencies. “Not a single bank had the guts to transfer money, because they were all afraid to be sued by the U.S. government,”
  • The World Health Organization announced earlier this year that more than $675 million will be required through April—including $61 million for its own activities—to mount an international campaign against the virus. Though WHO’s Director-General Tedros Adhanom Ghebreyesus said recently that more money would be needed. On Feb. 17, UNICEF issued an urgent request for $42.3 million to support the coronavirus response. It will be used to reduce transmission of the virus by promoting distance learning for kids who can’t attend school and public information aimed at shooting down misinformation.
  • Guterres, meanwhile, expressed concern that the pandemic could claw back decades of efforts to raise international health standards and to scale back the most extreme levels of poverty, and undercut U.N. sustainable development goals, which are designed to improve the standard of living around the world by the year 2030.
  • “COVID-19 is killing people, as well as attacking the real economy at its core—trade, supply chains, businesses, jobs,” Guterres said. “Workers around the world could lose as much as $3.4 trillion.”
  • “We need to focus on people—the most vulnerable, low-wage workers, small and medium enterprises,” Guterres said. “That means wage support, insurance, social protection, preventing bankruptcies and job loss. That also means designing fiscal and monetary responses to ensure that the burden does not fall on those who can least afford it. The recovery must not come on the backs of the poorest—and we cannot create a legion of new poor. We need to get resources directly into the hands of people.”
Ed Webb

Fourth Turkish drilling ship arrives from South Korea - Al-Monitor: The Pulse of the Middle East - 0 views

  • Why it matters: Turkey has been conducting energy exploration in the eastern Mediterranean Sea and western Black Sea. Ankara's activities in the eastern Mediterranean have been a source of major contention between Greece, Cyprus and Turkey over conflicting territorial claims.  The tensions reached a high point last October when Turkish forces turned back a Cypriot research vessel for allegedly entering Turkish territory. Yet, revival of the exploratory talks between Ankara and Athens last year offered a diplomatic offramp to the escalation. In March, Greek Prime Minister Kyriakos Mitsotakis met with Turkish President Recep Tayyip Erdogan in Istanbul, following third round of talks between the two parties on Feb. 22
Ed Webb

America's Dark History of Killing Its Own Troops With Cluster Munitions - The New York Times - 0 views

  • In December 2009, when President Barack Obama ordered attacks on two suspected terrorist camps in Yemen, at least one Tomahawk missile fired from a warship accompanying the U.S.S. Nimitz dumped BLU-97 bomblets onto the village of al-Ma’jalah. The Navy made an almost comical play for plausible deniability of America’s role. The ships steamed near shore so their cruise missiles would have sufficient fuel to fly beyond the target, turn back in the direction of the sea, release their payload onto al-Ma’jalah and then continue over the beach and fall into blue water, hiding evidence on the ocean floor.The attack reportedly killed 55 people, including 14 people suspected of being Qaeda members, 14 women and 21 children. The empty cruise missiles fell into the sea. But at least one dud was left behind at the strike scene. Before long, photos of Tomahawk missile parts appeared in news reports from Yemen, along with one clearly showing an unexploded BLU-97 — distinctive bright yellow and made in the United States. In keeping with United States policy of concealing American involvement in the Yemen conflict, the government of Yemen lied about the strike, claiming the village was attacked by Yemeni forces. Along with the accidental civilian casualties, the bungled attack had another unintended effect: Diplomatic cables exposed by WikiLeaks show that President Ali Abdullah Saleh of Yemen and Gen. David Petraeus decided to forgo future cruise missile attacks in favor of airstrikes — evidently a concession to BLU-97 unreliability and public mood.
  • Under the new policy, military commanders can now use existing cluster munitions until “sufficient quantities” of “enhanced and more reliable” replacements are developed and fielded. Though the Army has recently purchased cluster munitions that claim a dud rate of less than 1 percent, the service is buying them in such small quantities that they will come nowhere close to replacing existing stockpiles on a one-for-one basis.
  • The vast majority of cluster weapons the United States currently holds are the same as those that killed and injured dozens of troops in Desert Storm.
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  • Despite cluster munitions’ long history of fratricide, Pentagon leaders continue to assert that using these weapons can reduce casualties among Americans, partner nations and even civilians. When pressed repeatedly by The Times to explain such a scenario, and why other, newer, smaller and much more reliable munitions that have been added to its arsenal in recent years would be unable to carry out the same missions with less risk, Pentagon officials declined to elaborate.
  • A 2008 Defense Department memorandum showed that the Pentagon’s munitions stockpile in South Korea contained nearly 1.7 million cluster weapons, of which almost 1.2 million were Vietnam-era cluster artillery projectiles — the same weapons that killed many American service members in that war.
  • It’s possible that cluster weapons’ grim legacy, particularly that of the BLU-97, has been forgotten by the people now deciding how they will be deployed in the future. Those who remember are the explosive-ordnance disposal techs, who for more than 25 years have circulated Staff Sergeant Crick’s battlefield logbook as a testament of American military recklessness. It had almost no public exposure in all these years until a senior tech, who called the BLU-97 “the most dangerous weapon in our arsenal, and not just to the enemy,” shared a copy with The Times.
Ed Webb

I Lost My Son in a Hail of Bullets at an Israeli Checkpoint | The Nation - 0 views

  • An Israeli ambulance arrived within ten minutes and treated the soldier for her light injuries. They did not treat Ahmad. The soldiers also refused access to the Palestinian ambulance that tried to reach Ahmad. 
  • My husband received a call and rushed to the scene, but the soldiers refused him the decency of holding his dying son. Israel declared Ahmad a “terrorist,” the accident a car-ramming, and concluded that the shooting was self-defense and the denial of life-saving medical treatment and familial goodbyes were justified. But there was no real investigation. 
  • No one checked the car’s black box or, apparently, read the report in Consumer Affairs detailing Hyundai accidents in South Korea and beyond since 2009. No one took note of the fact that even in times of war, incapacitated combatants are entitled to medical care. No one bothered to consider that, as much as we all hate Israel’s occupation, we love our families more, and my Ahmad would never have done this, and certainly not on his baby sister’s wedding day. Still, Israel has held his body captive, refusing us the dignity of a proper burial.
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  • In the past two years, Israeli soldiers have killed over 200 Palestinians under Israel’s shoot-to-kill policy, many for the simple act of participating in the Great March of Return, after which the Israeli authorities have attempted to smear them as terrorists. Yet, the record shows that in the vast majority of those incidents, the slain Palestinian did not even have a weapon. The United Nations Human Rights Council has found that Israeli troops lethally shoot Palestinians on “mere suspicion” or as “a precautionary measure.” And in 2018, the Israeli High Court sanctioned its shoot-to-kill policy against protesters in the Great March of Return in Gaza. Ahmad was not an aberration and, as we Palestinians know too well, he was not the first nor will he be the last to be mercilessly stolen from us.
  • We have been steadily squeezed into smaller and smaller spaces as Israeli settlements boom around us, atop our hills where settlers can watch us from above like prison guards.
  • we have already lived in a de facto annexation reality for more than 50 years
  • Our existence has impeded Israel’s vision for uninterrupted sovereignty from the Jordan River to the Mediterranean. As natives, we are inconveniently in the way, and so Israel, its army, and its armed settlers take away our lives with excruciatingly painful ease
  • Republicans and some Democrats insist the US continue to unconditionally support Israel, no matter how many children they snatch away from us, how many homes they destroy, how many walls they build, how many hilltops they desecrate, and weddings they turn into funerals
  • pressure from six U.S. senators advocating on behalf of Ahmad’s paternal aunts, uncles, cousins, and extended family has been impotent in influencing Israel to simply release Ahmad’s body for burial
Ed Webb

Despite Slump, U.S. Role as Top Arms Supplier Grows - NYTimes.com - 0 views

  • The United States signed weapons agreements valued at $37.8 billion in 2008, or 68.4 percent of all business in the global arms bazaar, up significantly from American sales of $25.4 billion the year before. Italy was a distant second, with $3.7 billion in worldwide weapons sales in 2008, while Russia was third with $3.5 billion in arms sales last year — down considerably from the $10.8 billion in weapons deals signed by Moscow in 2007.
  • The United States was the leader not only in arms sales worldwide, but also in sales to nations in the developing world, signing $29.6 billion in weapons agreements with these nations, or 70.1 percent of all such deals.The study found that the larger arms deals concluded by the United States with developing nations last year included a $6.5 billion air defense system for the United Arab Emirates, a $2.1 billion jet fighter deal with Morocco and a $2 billion attack helicopter agreement with Taiwan. Other large weapons agreements were reached between the United States and India, Iraq, Saudi Arabia, Egypt, South Korea and Brazil.
  • The top buyers in the developing world in 2008 were the United Arab Emirates, which signed $9.7 billion in arms deals; Saudi Arabia, which signed $8.7 billion in weapons agreements; and Morocco, with $5.4 billion in arms purchases.
Ed Webb

Iran studies building nuclear fusion reactor - Yahoo! News - 0 views

  • an initial budget of $8 million to conduct "serious" research in the area of nuclear fusion.
  • The United States, the European Union, China, India, Russia, Japan and South Korea signed an accord in 2006 to build a $12.8 billion experimental fusion reactor at Cadarache, southern France, aimed at revolutionizing global energy use for future generations. The International Thermonuclear Experimental Reactor, or ITER, members have said no single country can afford the immense investment needed to move the science forward.
Ed Webb

Iran's economy: Sanctions begin to bite | The Economist - 0 views

  • ordinary Iranians are increasingly worried and indeed hurt by sanctions
  • Even taken together, the sanctions are unlikely to bring the world’s fifth-biggest crude-oil exporter to its knees. The loopholes remain big enough, and the attraction of Iran’s 75m-strong market strong enough, to keep goods and money flowing. Although South Korea joined Japan last month in slapping sanctions on a range of Iranian banks and firms, bringing it into line with other American allies, it remains keen to protect trade with Iran that topped $10 billion last year, so it quickly signed a deal to let Korean and Iranian traders settle accounts via special facilities in two Korean banks and in Korean currency. The Asian powerhouse, China, sees no need for such sleight of hand, and has rapidly expanded its share of Iran’s market, as has neighbouring Turkey.
  • Almost all the biggest international traders in refined petroleum products, for instance, have stopped dealing with Iran, forcing the country to rely on costlier small-scale overland shipments for much of the petrol that it still has to import because of underinvestment in refining.
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  • oil output is likely to fall by 15% and exports by as much as 25%
  • After crushing its reformist opponents, his conservative faction has broken out in increasingly rancorous internal wrangling. The biggest looming issue is Mr Ahmadinejad’s plan to slash consumer subsidies that cost his government $70 billion-100 billion a year, a quarter of GDP. Already lumbered with feeble economic growth and high unemployment, Iranians now face the prospect of sharp rises in prices of food, fuel and transport. The coming winter looks set to be harsh.
Ed Webb

Saudi Arabia and Hungary sign nuclear energy pact | Middle East Eye - 1 views

  • Oil giant Saudi Arabia, which is trying to diversify its energy sources, signed an agreement on Monday with Hungary to cooperate in the use of atomic energy.It is the latest pact of its kind signed by Riyadh, which earlier this year reached similar agreements with Russia and South Korea.
  • cooperation in reactor design, construction and operation, security, waste management and training
  • help the kingdom to establish atomic and renewable energy in a sustainable way to help preserve depleting hydrocarbon resources
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  • Saudi Arabia is entirely dependent on oil and gas for its electricity production, and according to SPA its energy demand is growing between six and eight percent annually
  • France and Saudi Arabia announced a feasibility study for building two nuclear reactors in the kingdom
Ed Webb

Will the U.S.-Saudi Arabia Relationship Ever Reach a Breaking Point? - 1 views

  • Again and again, the unlikely partners would fall out—usually over the Arab-Israeli conflict, much later over the 9/11 attacks. But the fundamental bargain struck by U.S. President Franklin D. Roosevelt and then-King Ibn Saud in the waning days of World War II that consummated the U.S.-Saudi relationship 75 years ago would never break
  • lawmakers in oil states such as Texas, Louisiana, North Dakota, and Alaska accuse Saudi Arabia of waging “economic warfare” and have drafted legislation to immediately pull out U.S. troops and furl up a decades-old U.S. security umbrella that has protected the vulnerable Saudi state
  • many in Washington are coming to question the very fundamentals that have underpinned a very special bilateral relationship for 75 years—essentially, U.S. security to ensure the free flow of Saudi oil and Saudi support for U.S. designs in the Middle East
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  • Today’s tensions stem, in many ways, from the original foundations of the odd-couple relationship: an oil-for security bargain that always sought, but never fully managed, to bridge the divide between a liberal democracy and a conservative religious monarchy
  • Some experts believe U.S.-Saudi ties will ultimately weather the storm, as they always have, because of the need for a large, wealthy, and anti-Iran anchor for U.S. interests in the Middle East
  • “But we don’t need the Saudis anymore—this comes in a very different geopolitical environment than previous crises.”
  • Saudi Arabia was one of the only countries in the world that continued to receive U.S. Lend-Lease aid after the end of the war.
  • essentially underwriting the security of an oil-rich desert sheikdom to keep oil supplies flowing—and to keep the Soviets out of the Middle East.
  • Roosevelt had met Ibn Saud hoping for Saudi support for a Jewish homeland in the Middle East, which the king vehemently opposed, and the U.S. president—in Saudi eyes—gave his word not to press the matter. But Truman, Roosevelt’s successor, eventually supported the creation of Israel, sowing years of distrust and cries of betrayal in Saudi Arabia
  • “In my conversations with the king, the crown prince, and the deputy crown prince, they favored the effort to halt Iran’s nuclear weapons program. But they wanted more: They wanted us to push on Iran’s actions in Iraq, Syria, and Yemen, and we didn’t do that.”
  • The Iranian revolution, as well as an assault that same year on the Grand Mosque in Mecca, terrified Saudi leadership, who saw how vulnerable their own position was. The revolution, by removing the shah and creating permanent enmity with the United States, left Saudi Arabia as America’s main linchpin in the Middle East, all the bad blood from the oil embargo notwithstanding
  • Fearful of being toppled by religious radicals, Saudi leaders embraced a much more conservative line and empowered hard-line religious leaders in their own country, the first steps toward a decadeslong program to export the austere Wahhabi brand of Islam particular to the kingdom. Soon, wealthy Saudis, including one Osama bin Laden, started funding the Muslim mujahideen who were fighting the Soviet invasion of Afghanistan that began the same year as the Iranian revolution. Two decades later, that Saudi lurch toward a harsher official line on religion would end up creating the biggest crisis yet in the special relationship.
  • “The relationship never really recovered from 9/11,”
  • the George W. Bush administration, despite vehement Saudi objections, decided to invade Iraq to topple Saddam Hussein. Saudis feared that would open the door to greater Iranian influence on their doorstep, as in fact happened.
  • In the end, the United States and Saudi Arabia patched up the dispute, and the oil embargo ended by the spring of 1974. But the scars it left were deep and long-lasting, permanently damaging Saudi Arabia’s image in American popular opinion, and leaving deep-rooted fears that the Saudis could and would use their oil weapon to damage U.S. interests—a fear that has persisted even though the nature of the Saudi oil threat has changed.
  • “King Abdullah was very respectful and liked Obama personally, but there were things they couldn’t understand,” said Westphal, who was present for three of Obama’s record four trips to Saudi Arabia. “‘Why are you supporting Maliki, who is essentially handing over his country to the Iranians? How can you not depose Assad?’”
  • Since 1979, Saudi leaders had seen Iran as the gravest threat to the region and their own security, and U.S. efforts to reach a nuclear deal while seemingly letting Iran continue its destabilizing behavior in the region unsettled the Saudis.
  • “There’s no question that the Arab Spring unsettled the U.S. relationship with the Saudis. For them, the U.S. response [to calls for reform in the Arab world] was way too sympathetic, and the relationship cooled,”
  • Saudi leaders famously rolled out the red carpet, and a glowing orb, for Trump’s first overseas trip as president. It seemed a surprising about-face after Trump’s attacks on Muslims, and repeated attacks on Saudi Arabia, on the campaign trail, when he accused the kingdom of carrying out 9/11, criticized it for sponging off American protection, and threatened an economic boycott. Saudi leaders were happy to overlook Trump’s comments, eager to forge ties with an untested and unorthodox president before other foreign leaders could. “Washington is like Rome in the Roman Empire, and we are like a satellite state—you pay homage to the emperor,” Shihabi said. “You could put a monkey in the White House, and we’d pay homage.”
  • The playbook that has reliably worked since 1945 to ground the bilateral ties in personal relationships with the president now seems to be backfiring. Mohammed bin Salman, reviled by many in Congress for his alleged role in the Khashoggi killing, as well as other continued human rights abuses inside Saudi Arabia and in Yemen, is seen as being exceptionally close to Kushner and Trump. Riding the coattails of a historically unpopular, already-impeached president isn’t the best way to improve Saudi Arabia’s image.
  • Despite decades of close economic ties and military and counterterrorism cooperation, Saudi Arabia never seemed to plant deep roots in the United States that would institutionalize the relationship beyond kings, generals, and presidents. This meant when tensions flared up between the two countries, Riyadh didn’t have many outside allies to come to its defense in Washington
  • Mohammed bin Salman’s foreign-policy excesses: the disastrous war in Yemen, the bizarre virtual kidnapping of Lebanon’s prime minister to pressure Iran and Hezbollah, and an embargo on Qatar, its small neighbor and a key U.S. military partner. At home, there was the regular drumbeat of reports on human rights violations, plus a $100 billion shakedown on wealthy political rivals to consolidate power under the guise of an anti-corruption campaign.
  • As long as they’ve been a country—they’re so young—they really don’t know what their place in the world would be like without the backing of the United States,”
  • Unlike in 1973, when Saudi Arabia used the oil weapon to jack up oil prices and hurt the United States, this time crashing oil prices did the trick. U.S. shale producers need oil prices above $40 a barrel to break even; the Russian-Saudi price war sent the price of oil to $25 and then into the single digits, ensuring a wave of bankruptcies and economic hardship from Texas to North Dakota.
  • “The Saudis have a deep problem with the Democrats, and that’s been clear for a long time. Now they have spoiled their relationship with Republicans,”
  • In the summer of 2019, when Iranian attacks on oil tankers near the Persian Gulf threatened the flow of oil, Trump’s response was to tell allies such as Japan and South Korea to protect their own ships, questioning why the United States should continue to carry out a mission it’s done for decades unless other countries coughed up cash. That fall, key Saudi oil facilities were attacked, allegedly by Iran, knocking out 5 percent of global oil production in a matter of minutes. The U.S. response, other than a Trump tweet, was to do nothing.
  • The bitter recriminations during this spring’s oil price war, coming on the heels of the Khashoggi murder, the continued war in Yemen, and other Saudi missteps, give many observers reason to believe that the relationship is due for a fundamental rethink.
  • as long as the United States continues to view Iran as a major threat, close relations with Saudi Arabia will have a strong appeal
Ed Webb

UAE Peace Deal Opens Doors for Secret Israeli-Iranian Pipeline and Big Oil Investments - 0 views

  • desert oil pipeline that Israel once operated as a secret joint venture with Iran could be a major beneficiary from the Trump-brokered peace deal with the United Arab Emirates. With the UAE formally scrapping the eight-decade Arab boycott of Israel—and other oil-rich Gulf neighbors likely to follow suit—the Jewish state is on the cusp of playing a much bigger role in the region’s energy trade, petroleum politics, and Big Oil investments
  • Stepping cautiously out of the shadows, the Israeli managers of Europe Asia Pipeline Co. (EAPC) say their 158-mile conduit from the Red Sea to the Mediterranean Sea provides both a cheaper alternative to Egypt’s Suez Canal and an option to connect to the Arab pipeline grid that transports oil and gas not just to the region, but to the seaports that supply the world
  • the pipeline, which connects Israel’s southern port of Eilat with a tanker terminal in Ashkelon on the Mediterranean coast, could nip off a significant share of the oil shipments now flowing through the nearby Suez Canal.
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  • Now that the Emiratis have broken the ice, opportunities for Arab-Israeli energy deals are broad and lucrative, ranging from investment in the Israeli pipeline itself, to adapting it for carrying natural gas or connecting it to pipelines across Saudi Arabia and the wider Middle East
  • Just over 60 years ago when it was built, the Eilat-Ashkelon pipeline was a massive national construction project aimed at guaranteeing Israel’s and Europe’s energy supplies in the wake of the 1956 Suez crisis
  • Most of the oil flowing through the pipeline came from Iran, which had close but discreet relations with Israel for decades under Shah Mohammad Reza Pahlavi. In 1968, the Israeli and Iranian governments registered what was then called the Eilat-Ashkelon Pipeline Co. as a 50-50 joint venture to manage the export of Iranian crude through Israeli territory and onward by tanker to Europe
  • A Swiss court ordered Israel in 2015 to pay Iran compensation of about $1.1 billion as a share of profits from the joint ownership of the pipeline since the two enemies broke off relations in 1979, but Israel has refused to pay up.
  • While the company’s main 42-inch pipeline was built to transport Iranian oil north to the Mediterranean, it now does most of its business in reverse. It can pump oil unloaded in Ashkelon from ships sent by producers such as Azerbaijan and Kazakhstan to tankers in the Gulf of Aqaba for transport to China, South Korea, or elsewhere in Asia
  • The pipeline’s advantage over the Suez is the ability of the terminals in Ashkelon and Eilat to accommodate the giant supertankers that dominate oil shipping today, but are too big to fit through the canal. Known in oilspeak as VLCCs, or very large crude carriers, the ships can transport as much as 2 million barrels of petroleum. The 150-year-old Suez Canal, on the other hand, is only deep and wide enough to handle so-called Suezmax vessels, with just half the capacity of a VLCC
  • The company’s business has always been one of Israel’s most closely guarded secrets. Even today, EAPC releases no financial statements. Levi says he can’t disclose the names of customers—though he says they include “some of the biggest companies in the world.” What little information that is publicly known only came to light as the result of legal battles following a 2014 rupture in the pipeline that caused the worst environmental disaster in Israeli history, spilling more than 1.3 million gallons of crude oil into the Ein Evrona desert nature preserve.
  • The boycott enforced by Saudi Arabia, the UAE, and their oil-producing neighbors meant that tankers acknowledging their docking in Israel would be barred from future loadings in the Persian Gulf, effectively destroying their business. The details are highly confidential—but generally the ways ships can obscure their activities include turning off their transponders, repainting, reflagging, reregistering, and faking their docking records.
  • EAPC’s business model improves dramatically with the erosion of the Arab boycott. “If the concerns [with secrecy] go down significantly, the price will drop significantly,”
  • Saudi Arabia has indicated it won’t establish formal links until the Palestinian conflict is resolved, although its business connections with Israel are plentiful and growing
  • Because of the canal’s limitations, much of the Gulf crude bound for Europe and North America gets pumped through Egypt’s Suez-Mediterranean Pipeline, in which Saudi Arabia and the UAE hold a stake. Egypt’s pipeline, however, operates in only one direction, making it less useful than its Israeli competitor, which can also handle, for example, Russian or Azerbaijani oil heading to Asia.
  • Even more possibilities arise from Israel’s discovery of a bounty of natural gas deposits off its Mediterranean coast that can supply far more than Israel’s own needs. Bringing in Gulf investors in addition to Israel’s current partners such as Chevron, and the possibility of connecting to the Middle East’s gas pipeline grid, would open yet another new horizon for Israel’s nascent energy industry.
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