Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15
Bottle Of the Pipeline Projects RACES
Across the OiI-Sooked Middle East

lines will CONNECT with Kuwait
and with the oilhelds OF Iran.
The north-south trunk line,
with terminal facilities in the
neighborhood of Iskanderun, is to
consist Of two parallel lines, sim
liar to the system now carrying
oil from Kirkuk to Banyas and
Tripoli. The lines total capacity
will be around / million barrels a
day-more than normally flows
through both Tapline and lines
Of the Iraq Petroleum Co.
The ltolo- GeFmon Project
Legislation just passed by the
Iranian Parliament throws all of
Trans potentially oil-bearing
lands. outside Of the 1OO,0O0-mile
are now under concession to the
international consortium, wide
open to foreign interests.
Italian and German concerns
are in the forefront of the ex-
pected rush of newcomers to the
Iranian oil feast. AS early as
last April the governments
E. N. /. (Ente Nazionale Idrocar-
burD signed an agreement with
the Teheran government covering
an area Of about 5000 square
miles.
AS soon as they have struck
oil in sufficient quantity the
Italians have promised to build
with German technical assistance
ana probably also financing
pipeline running from North
Central Iran to a point on the
Turkish Mediterranean coast also
IN the area Of Iskenderum. The
proposed 900-mile-long pipeline
will have to cross high noun
tain range. the lowest pass OF
which is 1900 feet above sea level.
Which German firms are inter-
ested in oil rights for themselves
IS not known yet. but the fact
that preparatory contacts have
been established was freely mem
toned in both the German and
the Iranian press.
The Israeli Pipeline
ISrael's pipeline project is a
strictly national venture designed
to carry crude from the Middle or
Far East to the Haifa refinery.
bypassing the Suez Canal. So far
a l35-mile stretch from Elath to
Beersheba has been completed.
However, this is a line of small
capacity (8-inch pipe). which was
laid in haste during the Suez
crisis and started flowing on April
25. 1857. The Israelis would like to
replace it with 10 or even a
32-inch line running all the way
from Elath to Haifa, at an esti-
mated cost of at least $50 million.
The French government has
been reported ready to subscribe
half the cost in equipment. rather
than in cash--in return for a so
per cent share Of the throughput
of crude. Israel may find the going
rough, though, trying to get suf-
ficient supplies of crude to keep
her pipeline operating at capacity.
Boycotted by the entire Moslem
world she now is faced, moreover.
with a withdrawal from Haifa of
the British companies that had
been operating the refinery there.
Nosser's Project
Egypt's plan to build a 32-inch
pipeline, with an initial capacity
Of 100000 barrels. on the west
side of the Suez Canal is an
overt challenge to the new Middle
East pipeline network devised by
the International oil companies.
This scheme was originally de-
vised by the Greek tanker king
A. S. Onassis after, he had begun
building ships too big to pass
through the Suez Canal when
fully loaded.
The idea was for one Of his
COR somebody else's) supertankers
to discharge fun load Of Per-
sian Gulf crude at the southern
end Of the Suez pipeline and to
have another pick it up again at
the northern end. Or else, to have
the same tanker do both things
by unloading about half its cargo
into the pipeline at Suez. then go
through the Canal in half-ballast,
and finally pick up a full load
again at Port Said.
On JunN % it was reported
that the Cairo government and
OnaSsis had reached agreement
In principle" about forming a
Joint stock company to undertake
the $37 million project. However.
barely two weeks later, a spokes-
man Of the Egyptian Ministry Of
Finance announced that his gov
eminent had rejected the Onassis
deal. The official added that
Egypt had decided to finance the
project herself by throwing it
open to international bidding.
Least likely to succeed of all
current Middle Eastern pipeline
schemes is the one that was
Matched out at the fourth session
Of the Arab Leagues Economic
Council. at Cairo. in the last week
of May, 1857. It calls for the
formation of an all-Arab COM
pany for the purpose of building
a vast network Of pipelines link
ing the oilfields Of the area with
Arab ports on the Mediterranean,
the Red Sea and the Persian Gulf.
The plan, reported to have been
sponsored by Saudi Arabia. is all
most certain to go on the rocks
for lack Of capital, know-how and
cooperation from the oil-prodpe-