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Al-Ahram Weekly 6 - 12 May 1999 Issue No. 428 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 6 - 12 May 1999 Issue No. 428
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Profile Features Special Focus Travel Living Sports People Time Out Chronicles Cartoons Letters Gas for Turkey
by Niveen WahishA DELEGATION representing Botas, Turkey's national oil company, was in Cairo this week to negotiate details of the project to export Egyptian natural gas (LNG) to Turkey either by pipeline or in liquefied form in special tankers.
Turkish Ambassador to Cairo Aykut Cetirge told Aziza Sami that the ground has been prepared for closing a deal with Egypt once the new Turkish government is in place. The plan to export gas to Turkey, when it materialises, will place Egypt on the map of regional natural gas exporters.
A memo of understanding on the project was first signed during the Middle East North Africa (MENA) Conference held in Cairo in 1996. The details currently being negotiated by Botas and the Egyptian General Petroleum Corporation (EGPC) involve the price of gas, which the Turkish side considers to be "high", according to Cetirge. He added that despite this, Egypt is still a close contender for the project, "because it is [geographically] close to Turkey."
The proposal was given a high-level push last March with the announcement by Turkish President Suleiman Demirel that Turkey was "keen" to finalise a gas project with Egypt. A joint committee of the Egyptian Gas Company (GASCO) and Botas has been formed to conduct feasibility studies upon which will be based the decision whether to export the gas via an offshore pipeline in the Mediterranean Sea, or a land pipeline or by LNG tankers.
Turkey, which is the largest natural gas market in the Middle East, imports almost half of its energy needs from other countries. Its current annual gas consumption rate is 15 billion cubic metres, projected to rise to 55 billion cubic metres in the year 2010.
It is also finalising a deal to buy Turkomen gas. Another potential deal is already in the works with Iran, and gas shipments from Russia may increase. Additional contenders vying to export more natural gas to Turkey include Algeria and Nigeria, according to the ambassador.
