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DMEA NEWS IN BRIEF DMEA

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SECURITY & POLICY

Iran, Russia reportedly

set to go ahead with gas
swap arrangement

Iran and Russia look set to implement a gas swap
arrangement under which the former will take
15mn cubic metres (mcm) per day of gas from
the latter, according to Iranian media reports.
A volume of 9 mcm of Russian gas per day
would flow into northern Iran via pipelines run-
ning via Azerbaijan, while southern parts of Iran
would take 6 mcm of gas from Russia per day
delivered in the form of LNG, according to Fars
News Agency, one of the outlets that reported
the information provided by Iranian Oil Minis-
try officials. Gazprom would be a partner in the
liquefaction process required for the use of the
LNG.
Iran would use the gas supplies from Russia to
strengthen its domestic supply network, which
suffers from gaps, particularly in the northwest conditioners off, to further reduce electricity administration in Tripoli.
of the country, officials reportedly briefed. To consumption in Egypt, freeing up even more Economic conditions deteriorated as a result
complete the swap, Iran would export increased natural gas volumes for export. of the political divisions and struggles, but Lib-
amounts of gas to Turkey and Iraq through pipe- In the meanwhile, a spike in natural gas yans hope the country’s oil revenues, which
lines to the west, they were cited as also saying. prices on global markets since Russia’s invasion returned to normal levels following the reopen-
Iran already has gas swap agreements with of Ukraine has significantly boosted Egypt’s rev- ing of a number of closed oilfields, would help
Turkmenistan and Azerbaijan. enues from natural gas exports helping to allevi- revive the ailing economy.
Iran and Russia have stepped up their trade ate the strong pressure on international reserves bna/IntelliNews, September 21 2022
and investment cooperation across several fields from capital flight.
since Moscow was hit by heavy Western sanc- bna/IntelliNews, September 20 2022 Algeria’s Sonatrach
tions in the wake of its late February invasion of
Ukraine. Prior to the sanctioning of Russia, Iran Libya’s central bank reportedly not able to
was the most heavily sanctioned country in the
world. It is now the second most sanctioned. transfers $10bn in provide agreed gas
bne/IntelliNews, September 22 2022
Egypt’s natural gas export cash to Benghazi quantities to Italy
The Central Bank of Libya (CBL) has provided The Algerian oil group Sonatrach has been
revenues set to jump to Benghazi authorities with LYD50mn ($10mn) in struggling to supply 9bn cubic metres of addi-
tional natural gas to Italy, threatening the earlier
cash to help the eastern city meet urgent neces-
$8.5-$10bn in FY 2022/2023 sities, according to a report by Libya Update on agreement of the two countries, Algerian news
Tuesday (September 20).
portal Algerie Part reported on Sunday, Septem-
Egypt’s natural gas export revenues are expected The cash liquidity is transferred mainly to ber 18.
to jump to between $8.5-10bn in fiscal year (FY) Al-Wahda Bank, as well as other lenders in the Sonatrach will be reportedly providing
2022-2023, up from $6.5bn in the past fiscal year city. It arrived at Benina Airport in Benghazi Italy with up to 4 bcm of gas only, Algerie Part
that ended last June, Minister of Petroleum Tarek from the capital Tripoli on Wednesday. reported citing a Sonatrach internal audit.
El Molla reportedly told Al Arabiya TV news. The move comes within the central bank plan In July, Algeria and Italy signed an agreement
The minister based his statements on both to provide liquidity in all branches of commer- that includes Algeria providing its European
higher export volumes and rising global prices cial banks. The bank’s liquidity team has been partner with 9 bcm of gas from November 2022
for natural gas. The Egyptian government has working to transfer liquidity shipments to the until December 2023, in addition to the previ-
implemented a number of energy efficiency rest of the bank branches in the eastern region. ously agreed quantities.
measures since early August, rationalising Libya has been torn by armed and political To be able to fulfil its commitment, Algeria
domestic electricity consumption at public conflicts for more than a decade, following a will need to mobilise all the existing transport
buildings to free up natural gas typically used in popular uprising that ousted ex-dictator Mum- capacities of the TransMed gas pipeline and
electricity generation for export. mar Gaddafi in 2011. His removal led to a split gradually increase production, but Sonatrach
Now the petroleum ministry is counting between rival governments: one in the east, will not be able to do that, as it uses part of its
on lower temperature levels in autumn start- backed by military commander Khalifa Haftar, network capacity to produce much-needed
ing in October, when consumers turn their air and another in the west, the UN-supported LNG, which has witnessed surging prices.

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