empty
 
 
17.05.2021 02:10 PM
Revival of the Egypt-Syria-Iraq gas pipeline

This image is no longer relevant

Based on the reports from Bloomberg, Iraq is said to be ready to invest $ 15 billion in new gas projects that are likely to reduce its dependence on Baghdad – this is gas imports. Baghdad has a plan to achieve self-sufficiency by 2024-2025, while several massive projects are being developed. Along with promoting domestic gas production, Baghdad is going to revive a forgotten gas pipeline project. On April 29, Ihsan Abdul Jabbar, Iraq's Minister of Oil, said that there is an agreement on the import of Syrian gas. A little later, it was clarified that all natural gas will be transported not from Syria, but in transit from Egypt through Syria. The volumes were not specified. The Egyptian representatives of the company were not present when the gas pipeline was discussed. Accordingly, the buyer and the transit country agreed without Egypt.

To overcome the many challenges that may arise from the revival of the Egypt-Syria-Iraq gas pipeline, it will take diplomatic talent to be able to oppose Baghdad to Tehran and at the same time, Washington. Iraq followed a cautious path: 3 days after the announcement, it sent its Energy Minister, Majid Mahdi Hantush, to Tehran with a statement that Iraq would like to continue purchasing Iranian electricity and gas and intends to pay off all its debts. In turn, Iran is going to use these debts, formed over many years by Iraq, as payment for the Sputnik-V vaccine.

In order for gas to flow from Egypt to Iraq, there are a lot of obstacles to be overcome. The first obstacle is that more than the usual political support is needed to restore an old failed project. Back in 2004, the government leaders of Egypt, Syria, Jordan and Lebanon gave their consent to the inclusion of Baghdad in the Arab Gas Pipeline Network (AGP) based on assumptions, and allowed Iraq to export its gas to Europe. However, the civil war, which began in 2011, does not allow for economic recovery.

By implementing the idea of importing gas from Egypt, Iraq will partially free itself from dependence on Iranian electricity, which it has not been able to achieve for several years.

However, the implementation of the revival of the Egypt-Syria-Iraq gas pipeline proved to be a difficult task in the political sense. Syria is under US sanctions, so anything related to this country, even with regard to transit, will most likely require the lifting of sanctions. The problem is that there is an uncertainty that the United States will agree to this.

This image is no longer relevant

Irina Yanina,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback