European Investment Bank lending EUR 100 million to Egypt - Jordan gas pipeline across
The European Investment Bank (EIB) is lending EUR 100 million to the Egyptian Natural Gas Holding Company (EGAS) towards construction of a 393 km south-north gas pipeline across Jordan (Aqaba to Rehab) to bring Egyptian natural gas to major power plants, industries and consumers throughout Jordan. The pipeline is also known as Arab gas pipeline or Jordanian gas transmission pipeline.
The agreement was signed Monday in Cairo in the presence of Eng. Sameh Fahmy, Minister of Petroleum of Egypt by Eng. Mohamed I. Tawila, Chairman of EGAS and Mr Philippe de Fontaine Vive, Vice-President of the EIB with special responsibility for FEMIP, on the occasion of his official visit to Egypt to chair the 4th FEMIP Ministerial Meeting taking place in Alexandria on 7 June 2004.
As a “South-South” regional project, the gas pipeline is a priority project under FEMIP and a prime example of its catalyst role in investment in the MPCs.
Against the current high level of oil prices, it will provide economic benefits to Jordan, Egypt, and potentially to other countries in the region.
In Jordan, the project will help reduce power generation costs by replacing oil with gas at existing power stations. Additionally, the supply of gas to new combined cycle plants will raise the overall efficiency of the power system, increase supply of electricity to meet demand growth and diversify the energy system. Jordanian industry will also benefit from a lower cost of electricity and will be able over time to adopt internationally competitive gas based technologies. At the same time this conversion has very beneficial effects on the environment as it will significantly reduce polluting emissions.
Egypt will benefit from the upstream activity and gas sales revenues, which to some extent will be shared with European and other international companies participating in the exploration and production sector. Moreover, the project is an important regional development in the Euro-Med area. It establishes international trade in gas between Egypt and Jordan, and opens up the potential to include Syria and Lebanon when the pipeline is extended in the future. Subsequent phases of the project would enable onward connections to Turkey and the European gas system. (menareport.com)
© 2004 Mena Report (www.menareport.com)