The Euro-Arab Mashreq Gas Co-operation Centre (EAMGCC) has held a workshop in Damascus to discuss its initial proposals for the development of a regional gas market.
Government officials from Syria, Egypt, Jordan and Lebanon attended the event, as well as senior representatives of the European Union, the European Bank and the World Bank.
The project will be funded by a €6 million grant from the EU and €1 million from the governments of Egypt, Jordan, Lebanon and Syria. The workshop featured presentations on two components of the EAMGCC’s work: recommendations on the future strategic direction of the region’s gas market; and a review of existing gas laws, regulations and institutions in the Arab-Mashreq countries.
“In the first year of the project, the authorities have been carrying out diagnostic surveys of these countries, as well as Iraq, Turkey, Romania and Bulgaria,” said Jim Deacons, EAMGCC’s technical/financial expert. “Turkey and Iraq are observer countries of the project, but will be involved in the whole linking process. We are looking at Iraq as a potential supplier and giving it a route through Syria to Turkey.
The EAMGCC was established at the beginning of 2006 to implement the Euro-Arab Mashreq gas market project. It aims to promote a gas market within the Arab-Mashreq region and link it with the EU.
“The project has been built around construction of the Arab gas pipeline which will run through Egypt, Jordan, Syria, and up towards the Turkish border, effectively linking a gas network with Europe,” said Deacons. “It is designed to assist the four beneficiary countries [Syria, Egypt, Jordan and Lebanon], and to move towards the EU market model in terms of encouraging investment in the poor countries and the region as a whole.
“The EU is looking at the whole region – not just the Arab Mashreq area, but MENA as well – and are formulating an energy policy for this area, so our gas project will potentially align with a wider energy review. We are looking at the EU model in terms of transparency. Our centre is looking at how we can help the countries move towards that, but it’s a long way off.”
The project is due for completion in 2008 but, says Deacons, there will be plenty of hurdles to jump. “The problem with Egypt and Syria is they are very social minded. cause they are state run, there is a level of subsidisation within both countries. Their transparency is a difficult issue we will have to deal with in the longer term.”
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