21 - 27 December 2000
Issue No.513
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Al-Ahram Weekly On-line 21 - 27 December 2000 Issue No.513 |
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| Published in Cairo by AL-AHRAM established in 1875 | Current issue | Previous issue | Site map | ||
Bypassing Israeli waters
A memorandum for a $1 billion natural gas project among Egypt, Syria and Lebanon makes no room for the involvement of Israel A $1 billion natural gas project is to bring together Egypt, Syria, Lebanon in what promises to be a successful example of Arab cooperation. The ministers of petroleum of the three partners signed a memorandum of understanding early this week by which Egypt will export between six and nine million cubic metres of natural gas annually through a pipeline which will extend from Al-Arish on Egypt's northern coast, through Lebanon and Syria all the way to the borders of Turkey.
The project, which is scheduled to be completed in around four years, comprises two main phases. In the first, a marine pipeline will be laid between Al-Arish and Tripoli in northern Lebanon, avoiding Israeli waters. The second part of the project will witness the building of an over-land pipeline from Tripoli through Syrian territory to Turkey.
According to Sameh Fahmi, Egyptian minister of petroleum, the three signatory countries to the protocol are those that will benefit from the project. However, it has been noted that Jordan might join in the future. Similarly, the plan to extend the pipeline to Turkey's borders, makes its participation practically feasible. Fahmi said that the entry of any other country depends on the unanimous agreement of the founding parties.
Fahmi announced that a committee, headed by the energy resources ministers from each of the three signatory countries, will be formed to oversee the project. A number of subcommittees made up of representatives of the companies executing the project will be affiliated to this central committee.
Following his return from Lebanon, where the memorandum was signed, Fahmi said that two companies will be established to carry out the project. The first, Eastern Gas will be in charge of laying the marine pipeline, under a contract with an estimated value of $800 million.
The second company, the Arab Company for Gas, will be in charge of building the land pipelines, under a contract with an estimated value of $200 million.
This project falls within the framework of the petroleum sector's strategy to expand natural gas production using a third of this for export, a third for local consumption while building a reserve supply with the remaining third.
During the last four years, the Egyptian government has repeatedly expressed its interest in exporting natural gas. In 1996, during the Middle East and North Africa conference, the idea was floated for establishing a gas pipeline that would involve Egypt, Palestine, Israel as well as Syria, Lebanon and Turkey. However, this suggestion never materialised having consistently been met with opposition due to political issues in the context of the peace process.
The intention to export to Turkey has been reiterated many times. Early this year a protocol was signed with Turkey to supply it with eight billion cubic metres of natural gas annually. However, no action has been taken beyond that initial agreement.
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