Page 5 - MEOG Week 18 2021

MEOG COMMENTARY MEOG

Egyptian gas through Syria Basra boost
As if maintaining and potentially increasing On the topic of domestic gas developments,
Iranian gas flows was not geopolitically fraught Abdul Jabbar said that Baghdad would invest
enough for Baghdad, Abdul Jabbar last week around $3bn in the Basra Gas Co. joint venture
announced that talks had begun with Damascus (JV) over the next five years. He anticipates that
about importing Egyptian gas via Syria. this will give rise to a gas production capacity
He hosted Syrian Oil Minister Bassam Tomeh increase of 40% to 1.4bcf (40 mcm) per day.
at the MoO and said: “Iraq is keen to strengthen This follows the agreement with France’s
its relations with neighbouring countries, the Total for, among other things, a facility to pro-
countries of the Arab region, and the countries duce natural gas from the southern oilfields of
of the world in all fields, especially the oil, gas West Qurna-2, Majnoon, Ratawi, Tuba and
and energy sectors, in a way that serves common Luhais.
interests, develops the national economy and Meanwhile, the oil minister said in Octo-
develops its oil industry.” ber that BGC was considering a plan to speed
Abdul Jabbar spoke of discussing “issues of up construction of two NGL facilities under its
common interest”, noting that “there are points broad South Gas Utilisation Project (SGUP) on
of convergence and future visions about the which a final investment decision (FID) was
extent to which the abundance of Egyptian gas taken by super-major Royal Dutch Shell in Jan-
can be utilised and transported across the Syrian uary 2019.
territories.” BGC is comprised of state-owned Basrah
Meanwhile, Tomeh said that “the discussions Oil Co. (BOC), Shell and Japan’s Mitsubishi,
included discussing a set of ideas and visions for and it will execute the $17.5bn development to
future projects”, stressing “the depth of relations treat, process and distribute associated gas from
and joint co-operation between the two coun- the giant Rumaila, West Qurna-1 and Zubair
tries in the field of oil and energy”. oilfields. Current plans envisage the facilities
Exports would presumably be sent eastwards coming on stream in 2027, but Jabbar said that
from the Syrian segment of the Arab Gas Pipe- the plans under consideration would bring this
line which connects Egypt with Jordan, Syria forward by four years.
and Lebanon, along the route of the damaged While Iraq is likely to remain one of the big-
existing conduits connecting Baniyas and either gest gas flarers, there are signs that under Abdul
Haditha in central Iraq or the old line which Jabbar’s leadership, the oil and gas sector may
links to the Kirkuk-Ceyhan in the north. have turned a corner and utilise far greater vol-
In either case, major overhaul work would umes that are flared, leading to environmental
need to be carried out or a new pipeline and financial windfalls.
constructed. The benefits could be startling. In Q3 last
This is not the first time Iraq has tried to pipe year, Joe Anis, GE Gas Power’s CEO for MENA
in Egyptian gas. A memorandum of understand- & South Asia, said that by capturing 30-40% of
ing (MoU) was signed between Iraq, Jordan and the gas that is currently flared “we can deliver
Egypt in November 2015 to connect the AGP to over 3.5 GW of power”.
a new line between Ma’an in southern Jordan to Given the connection between gas availability
Rumaila in Iraq. and the easing of reliance on Iran and improved
Given that agreements were signed recently electricity generation, development of the gas
on a crude oil pipeline connecting Basra in Iraq sector is also likely to have the added benefit of
and Aqaba in Jordan, it would appear to make appeasing the restive population, particularly in
more sense to design this as a bi-directional facil- the south where temperatures are at their highest
ity with gas returning to Iraq. and air conditioning most required. In any case,
With Amman also oversubscribed in terms of the development of gas whether associated with
solar power developments and gas deals in place oil production or not, is likely to bring significant
with producers offshore Israel, such a pipeline benefits for Iraq and its economy, which is heav-
could kill two birds with one stone. ily reliant on the export of oil.™

Week 18 05•May•2021 www. NEWSBASE .com P5