Page 13 - DMEA Week 02 2021

DMEA POLICY DMEA

Egypt offers $950mn in loans

to convert cars

EGYPT EGYPT’S central bank has launched an converting existing vehicles that are over 20 years
EGP15bn ($950mn) initiative to support motor- old. The target is to convert or replace 250,000
Egypt has a surplus of ists that want to convert their vehicles to run on cars in the next three years. President Abdel-Fat-
gas supply and wants natural gas. tah El-Sisi also said last year that all new cars
to put the fuel to use in Egypt now has a surplus of natural gas supply, would be required to operate on natural gas
its economy. thanks to the launch of the Eni-operated Zohr before they were given a licence.
field in 2017 and other gas projects in recent The central bank unveiled the support pack-
years. The government is therefore working to age on January 3, on the eve of Egypt’s first Go
give gas a greater role in the Egyptian economy. It Green Exhibition. The government used the
wants to see more gas-fuelled cars on the road, in event, which ran until January 6, to inform
order to reduce pollution levels in Egypt’s largest car companies and the general public about its
cities, reduce transport costs and bring down the gas conversion strategy and how financing can
country’s fuel import bill. be obtained. It also sought to demonstrate the
The central bank’s initiative will see loans environmental and cost benefits of gas-fuelled
with a 3% interest rate provided through banks cars.
to individuals seeking to convert their gaso- In addition, the government presented the
line-fuelled cars to use natural gas as well. The steps it is taking to ensure the necessary infra-
financing is available for between seven and 10 structure is in place to support gas-fuelled trans-
years. port. Egypt already has 200 natural gas filling
Egypt wants eventually to see as many as stations in operation, and wants to open 325
1.3mn gas-fuelled cars on the road, primarily by more in 2021. ™

Iraq and Jordan discuss renewing

supply agreement

IRAQ THE governments of Iraq and Jordan are hold- that, according to the Cabinet’s decision, the
ing discussions regarding the renewal of their transportation cost was calculated at $11 from
Flows were steady agreement on crude oil supplies between the Baiji to Jordan, and this is among the items of
between September two countries. bilateral agreements between the two countries,
2019 and April 2020, A bilateral deal was signed in February 2019. and the supreme interest is valued by the country
when the pandemic It states that 10,000 barrels per day (bpd) of and the government.”
caused disruptions. crude from Iraq should be imported to cover Flows were steady from September 2019
around 7% of Jordan’s current demand. After until April 2020, giving a cumulative total of
lengthy delays, the first batch of Iraqi crude was 2.44mn barrels before cargoes began being
trucked from Baiji to Jordan via Kirkuk in Sep- unloaded into Jordanian trucks at the border
tember that year. in an effort to halt the spread of coronavirus
At the time, it was reported that Jordan would (COVID-19).
purchase the oil at a $16 per barrel discount to Shipments were severely affected by the
Brent in order to cover the transport and devia- pandemic and the resultant drop in oil price,
tion in specifications with Iraqi goods exported with several pauses in supplies and no crude
through the port of Aqaba, receiving preferential at all being sent to Jordan in August. Cargoes
rates in return. resumed in September following a July agree-
However, last week, in an interview with the ment between Amman and Baghdad on the
Iraq News Agency (INA), Alaa al-Yasiri, gen- resumption of oil exports, with Iraq completing
eral manager of Iraq’s state oil marketer SOMO, all of the required logistical preparations. Jor-
said: “The Oil Marketing Company does not danian Energy Minister Hala Zawati said that
have differential prices, but rather fixed prices crude flows had stopped after prices fell below
according to the market … Jordan stipulated $20 per barrel. ™

Week 02 14•January•2021 www. NEWSBASE .com P13