National: In energy trade, why can’t we all just get along?

Spending US$7 billion on 10 cross-border energy projects that save $127bn seems like a good deal. This proposition is even better when it also boosts economic growth in the Middle East and North Africa, eases unrest and reduces environmental damage. But will there be the political will to advance these projects?

The Arab Fund for Economic and Social Development identified its top 10 projects from many possible interconnections and revealed them at the 10th Arab Energy Conference in Abu Dhabi last month. These include seven electricity links costing a total of $3bn: from Libya to Egypt; between Yemen, Saudi Arabia, Egypt and Jordan; and from Kuwait to Iraq. Three gas import projects costing $2.8bn cover gas pipelines from Iraq to Kuwait and Libya to Egypt, and a liquefied natural gas import terminal in Bahrain.

Large resource holders such as Iraq and Libya would be able to receive better prices, while their neighbours would save on costly oil or imported LNG. Power plants would be used more efficiently and countries would not have to invest in excessive spare capacity. More carbon dioxide emissions than Saudi Arabia’s annual total would be saved by 2030.
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