A firefighter sprays water on the fire that resulted from an explosion on the Arab Gas Pipeline between the towns of Ad Dumayr and Adra, northwest of the capital of Damascus. Reuters
A firefighter sprays water on the fire that resulted from an explosion on the Arab Gas Pipeline between the towns of Ad Dumayr and Adra, northwest of the capital of Damascus. Reuters
A firefighter sprays water on the fire that resulted from an explosion on the Arab Gas Pipeline between the towns of Ad Dumayr and Adra, northwest of the capital of Damascus. Reuters
A firefighter sprays water on the fire that resulted from an explosion on the Arab Gas Pipeline between the towns of Ad Dumayr and Adra, northwest of the capital of Damascus. Reuters

Explainer: what is the Arab Gas Pipeline and why it matters


Jennifer Gnana
  • English
  • Arabic

The Arab Gas Pipeline is a feat of engineering at the heart of a supply grid between the key energy-importing states of the Middle East. The infrastructure, however, has faced several structural, logistical and security challenges over the years. Ministers from Egypt, Lebanon, Syria and Jordan are meeting today to consider the supply of gas through the pipeline to energy-deficit Lebanon, which is undergoing a major economic crisis. We take a look at this critical linchpin of Middle East energy supply and how it helps the energy importers of the region.

The pipeline

The Arab Gas Pipeline originates in Egypt, a significant source of gas supply in the Middle East and North Africa region. The Arab world's most populous country has become a major gas exporting hub in recent years following the discovery of the giant Zohr gas field, which has sparked a race for more resources along the Eastern Mediterranean. The pipeline, which stretches across 1,200 kilometres, snakes through Egypt, Israel, Jordan, Syria, Lebanon and Turkey. The infrastructure, commissioned in 2003 and built at a cost of $1.2 billion, has faced several challenges in exporting gas.

Supply of gas

Although the pipeline was built to help transport gas, it has proven to be unreliable. Originating in Arish, the largest city on the Sinai peninsula in Egypt, and built to transport an estimated 640 million standard cubic feet per day of fuel, the infrastructure has come under repeated militant attacks, especially the parts that are located close to the Sinai peninsula and Syria. In addition, a shortage of gas in Egypt have also previously disrupted supplies through the pipeline. Today, the pipeline flow of gas is around 70 to 120 million cf/d and supplies only to Jordan.

.
.

Egypt-Jordan-Israel

The stretch of pipeline connecting Arish with Jordan's southern Red Sea-facing port city of Aqaba was completed in 2003. The infrastructure, which was built at a cost of $200 million, extends further through the capital Amman and towards El Rehab on the Syrian border. A section of the original source pipeline also extends for 100km under the sea, connecting Sinai with Ashkelon in Israel, meeting half of the country's supply. Israel and Jordan began using the section of the pipeline that passes through their territories last year. Tel Aviv also began exporting gas to Amman as part of a gas supply agreement.

Syria

A 319km section of the Arab Gas Pipeline connects Jordan's El Rehab point with the western city of Homs in Syria. This portion of the infrastructure was completed in 2008 by the Syrian Petroleum Company and a subsidiary of Gazprom. However, it has not proved to be a very reliant carrier of gas. Last year, an explosion on the Syrian section of the Arab Gas Pipeline – which the government said was due to a terrorist attack – caused a blackout across the country.

Lebanon-Turkey-Iraq

The infrastructure was further extended to reach the northern Lebanese city of Tripoli. Gas supplies to Lebanon started in October 2009 but have remained suspended following the escalating conflict in Syria. The Syrian section of the pipeline connects to the 460 megawatt Deir Ammar power station, which can run on gas but burns only liquids at the moment. A section of the pipeline was extended from Homs to near Kilis in Turkey in order to provide Europe with an alternative source of supply. The section was built by Czech developer Plynostav. Iraq is also exploring the possibility of importing Egyptian gas through Syria, as it looks for alternatives to buying the fuel from neighbouring Iran. The plan was revived earlier this year following a meeting of the Syrian and Iraqi energy ministers.

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

Available: Now

SCORES

Multiply Titans 81-2 in 12.1 overs
(Tony de Zorzi, 34)

bt Auckland Aces 80 all out in 16 overs
(Shawn von Borg 4-15, Alfred Mothoa 2-11, Tshepo Moreki 2-16).

Winners

Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)

Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)

Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)

Best Young Women’s Player
Vicky López (Barcelona / Spain)

Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)

Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)

Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
Sarina Wiegman (England)

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

'Gold'

Director:Anthony Hayes

Stars:Zaf Efron, Anthony Hayes

Rating:3/5

Liverpool's all-time goalscorers

Ian Rush 346
Roger Hunt 285
Mohamed Salah 250
Gordon Hodgson 241
Billy Liddell 228

FIGHT CARD

Bantamweight Hamza Bougamza (MAR) v Jalal Al Daaja (JOR)

Catchweight 67kg Mohamed El Mesbahi (MAR) v Fouad Mesdari (ALG)

Lighweight Abdullah Mohammed Ali (UAE) v Abdelhak Amhidra (MAR)

Catchweight 73kg Mostafa Ibrahim Radi (PAL) v Yazid Chouchane (ALG)

Middleweight Yousri Belgaroui (TUN) v Badreddine Diani (MAR)

Catchweight 78kg Rashed Dawood (UAE) v Adnan Bushashy (ALG)

Middleweight Sallaheddine Dekhissi (MAR) v Abdel Emam (EGY)

Catchweight 65kg Rachid Hazoume (MAR) v Yanis Ghemmouri (ALG)

Lighweight Mohammed Yahya (UAE) v Azouz Anwar (EGY)

Catchweight 79kg Omar Hussein (PAL) v Souhil Tahiri (ALG)

Middleweight Tarek Suleiman (SYR) v Laid Zerhouni (ALG)

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Courses%20at%20Istituto%20Marangoni%2C%20Dubai
%3Cp%3E%3Cstrong%3EUndergraduate%20courses%3C%2Fstrong%3E%3Cbr%3EInterior%20Design%3B%20Product%20Design%3B%20Visual%20Design%3B%20Fashion%20Design%20%26amp%3B%20Accessories%3B%20Fashion%20Styling%20%26amp%3B%20Creative%20Direction%3B%20Fashion%20Business%3B%20Foundation%20in%20Fashion%3B%20Foundation%20in%20Design%3Cbr%3E%3Cstrong%3EProfessional%20courses%3C%2Fstrong%3E%3Cbr%3EFashion%20e-Commerce%20%26amp%3B%20Digital%20Marketing%3B%20Fashion%20Entrepreneurship%3B%20Fashion%20Luxury%20Retail%20and%20Visual%20Merchandising%3Cbr%3E%3Cstrong%3EShort%20courses%3C%2Fstrong%3E%3Cbr%3EFashion%20design%3B%20Fashion%20Image%20%26amp%3B%20Styling%3B%20Fashion%20Trend%20Forecasting%3B%20Interior%20Design%3B%20Digital%20Art%20in%20Fashion%3Cbr%3EMore%20information%20is%20at%20%3Ca%20href%3D%22https%3A%2F%2Fwww.istitutomarangoni.com%2Fen%3Futm_source%3DLocal%26utm_medium%3Dorganic%26utm_campaign%3Dgmb%26utm_content%3Ddubai%22%20target%3D%22_self%22%3Ewww.istitutomarangoni.com%3C%2Fa%3E%3C%2Fp%3E%0A
Moonfall

Director: Rolan Emmerich

Stars: Patrick Wilson, Halle Berry

Rating: 3/5

RoboCop%3A%20Rogue%20City
%3Cp%3E%3Cstrong%3EDeveloper%3A%20%3C%2Fstrong%3ETeyon%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ENacon%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%205%2C%20Xbox%20Series%20X%2FS%20and%20PC%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: September 08, 2021, 2:32 PM