EC, Egypt Sign Energy Agreement
December 5, 2008 // Published as a news service by IHS
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The European Commission (EC) and the Arab Republic of Egypt signed a memorandum of understanding to enhance energy cooperation between Egypt and the European Union (EU).
The memorandum identifies five priorities for cooperation:
- Development of a comprehensive Egyptian energy strategy, including institutional capacity building and energy market reform.
- Establishment of a work program for a gradual convergence of Egypt's energy markets with those of the EU.
- Development of energy networks aimed at improving energy security in the EU and Egypt.
- Enhancement of technological, scientific and industrial cooperation.
The memorandum was signed on Dec. 2 in Brussels by Benita Ferrero-Waldner, EC commissioner for external relations and neighborhood policy; Andris Piebalgs, EC energy commissioner; and Ahmed Aboul Gheit, Egypt's minister of foreign affairs.
Egypt is a significant oil producer and an emerging supplier of gas in the Mediterranean region. In this context, commissioners Ferrero-Waldner and Piebalgs promoted the finalization of the Arab Gas Pipeline during the Energy Ministerial that took place on May 5, 2008 in Brussels. The pipeline, which is being supported through the Euro-Arab Gas Market Centre, could transport Egyptian - and possibly Iraqi - natural gas resources to European countries.
Egypt also plays an important role in exports of liquefied natural gas and global oil transport via the Suez Canal, and is currently engaged in the development of regional gas and electricity networks.
In addition, Egypt has considerable potential for the development of renewable energy sources, particularly wind and solar, and is actively participating in EU-Mediterranean energy cooperation.
Piebalgs said, "The European Union is developing an integrated energy policy for coping with energy sustainability and climate change. The memorandum that the European Commission has signed today is one element of fulfilling Europe's intentions to strengthen relations in external energy, just as it is expressed in the Strategic Energy Review."
Piebalgs went on to say that climate change, the price volatility in oil and gas, and the general availability of conventional energy calls for more international cooperation.
He added that, in recent years, the EU has significantly strengthened its energy relations with Egypt, as well as broadly in the region. He mentioned the fact that the EU works with Egypt in the field of natural gas, regional electricity interconnections and market integration.
Piebalgs also pointed out that earlier this year a Regional Centre for Excellence in Renewable Energy and Energy Efficiency was inaugurated in Cairo.
Ferrero-Waldner said, "Egypt is a strategic energy partner for the EU. The memorandum that we are signing today will upgrade our cooperation in the sector recognising Egypt's role as the sixth largest natural gas supplier to the EU and a key transit country between the Middle East, Africa and the EU."
"We share the same energy concerns and opportunities - diversification and security of energy supplies, transport and markets, market reforms, development and modernisation of energy infrastructure, improving energy efficiency, and renewable energy sources. It is therefore natural that we should reinforce our cooperation to better address these challenges."
Further information
For more information, see:
Source: European Commission.