Thread by @v_madalina

This agreement between #China & Iran is one of most important #geopolitical developments of the year & its outcomes will reverberate beyond the geopolitics of energy field

▪️ $280bn to be invested by China in #Iran's oil, gas & petrochemicals sectors 1/

petroleum-economist.com/articles/polit…

- China will get minimum guaranteed discount of 12% to any oil, gas & petchems products that it'll buy; plus another 6 to 8%
-China to speed up development of #Phase 11 of South Pars gas field -from which Total had withdrawn, in response to US sanctions
-Also, production from 2/

from Iran's West Karoun oil fields to be increased by addit' 500,000bl/d by end of 2020
-China's imports of Iranian oil to stay high, even to be increased=>a continuous undermining factor of US sanctions policy

-China can delay the payment of Iranian oil, gas and petchems 3/

by two (!!) years, and (very importantly ) no transaction payment will be made in US dollars

And #China can obtain even further discount for Iranian oil, gas & petchems products, given exchange rate differences👆-the discount can be up to 32% -HUGE #OOTT 4/

▪️ Another $120bn investment in upgrading Iran's transport and manufacturing infrastructure; i.e. : project to electrify the main 900km railway connecting Tehran to Mashhad; Tehran-Qom-Isfahan high-speed train line & very important, 👇
a gas pipeline, part of #BRI, connecting 5/

Urumqi from WE China to Tehran, and linking Kazakhstan, Kyrgyzstan, Uzbekistan & Turkmenistan along the way, and then via Turkey into Europe 😶😶 #ONGT

▪️ Finally, 5,000 Chinese security personnel on the ground in Iran to protect Chinese projects, and even more to protect 6/

transit of oil, gas and petchems supply from Iran to China, including through Strait of Hormuz

If this agreement would be implemented as such, magnitude of consequences similar to those triggered by Quincy Pact, the agreement between Roosevelt & King Al-Saud concluded in 1945 7/