Arab gas on its way to Europe ?  

While I usually view the Iraq occupation as an American grab for Iraq's enormous reserves of cheap-to-extract, high quality oil, one little watched aspect is the potential for Iraqi gas to meet European gas needs, via the Nabucco pipeline, as indigenous production falls - especially as the only real alternative is to become a captive market for Tsar Vladimir.

There is some background here at The Asia Times from last year. This recent presentation from BG asking "Are we facing peak gas" (pdf) shows (at poor resolution) the USGS expects there to be rather a lot of gas through Iraq, though lagging that found in Russia, Iran and the gulf states.

EU Energy Commissioner Andris Piebalgs and External Relations Commissioner Benita Ferrero- Waldner met representatives of the Mashreq countries (Egypt, Jordan, Lebanon and Syria), Iraq and Turkey on May 5 in Brussels to discuss the finalisation of the Trans-Arab gas pipeline, promote its role as a future supplier of the EUbacked Nabucco project and encourage the full participation of Iraq in regional energy activities, including as a partner in the Trans-Arab project.

The Trans-Arab pipeline, which currently runs from Egypt through Jordan to Syria, has a capacity of 10 billion cubic metres per year. The pipeline, which will be interconnected with Turkey and Iraq by 2009, will provide a new transport route for gas resources from the Mashreq region to the EU.

Brussels also hopes that, in the future, the pipeline will be connected with the Nabucco pipeline which will traverse Turkey en route to Europe. During the meetings, discussions focused on prospects for reinforcing the existing cooperation through the Euro- Arab Mashreq gas centre in Damascus, which benefits from technical assistance provided by the European Commission. ...

The European Commission has finalised a Memorandum of Understanding on Energy Partnership with Egypt and another is under discussion with Iraq. A Joint Declaration on energy cooperation between the Commission and Jordan was signed in October 2007 and is now being implemented. “The Arab Gas Pipeline is set to be finalised by the end of the year, opening important possibilities as a new transport route for gas to the EU, particularly for the Nabucco project,” Ferrero-Waldner said.

Piebalgs said the Mashreq countries and the European Union are facing similar energy challenges. “We should seek common solutions to common problems like high oil prices for consumers, climate change or security of supply. A common response is necessary with new pipelines like the Arab gas Pipeline, but also with energy efficiency measures, the spearheading renewable energy in both sides of the Mediterranean,” the EU energy commissioner said.

Piebalgs said that the EU has agreed gas deliveries of seven billion cubic metres annually with Egypt and Iraq. Iraq is to supply around five billion cubic metres of natural gas from 2011 when the Akkas gas field in the western part of the country is producing sufficient amounts. Egypt has also agreed to supply the EU with two billion cubic metres of gas when the Trans-Arab gas pipeline is completed in 2009.
The European Commission has strongly supported Nabucco, which is supposed to supply the bloc with gas from the Caspian Sea region by 2012- 2013 while bypassing Russia. After a meeting with Russian Energy Minister Viktor Khristenko, Piebalgs told reporters Russia is working with its own project, South Stream, and excluded the possibility of linking Russia with the Nabucco network. “We should not ask Russia to join a project which they have never shown interest to join,” he said.