Natural Gas agreement propels Arab Common market

In an unprecedented move which represents a qualitative step towards achieving Arab economic integration, Egypt, Syria, Jordan and Lebanon signed an executive agreement for transporting and distributing Egyptian natural gas to Syria, Jordan, and Lebanon.

The agreement provides for the establishment of two companies the first of which has the name of " AL Sharq Gas" with total investments of 800 million dollars.

This company will be in charge of establishing main network of pipelines for transporting Egyptian natural gas to the three countries.

The second company which has the name of the Arab Gas company with aggregate investments of $200 million will take charge of transporting ,distributing and selling gas to cities and industrial communities in the three countries.

Minister of Information Safwat AL Sherif said the project serves as an important step towards the establishment of the common market as called for by President Mubarak.

He said the establishment of such a market starts with creating this kind of integration in the fields of energy, and infrastructure which represent the base for Arab common market.

The agreement was signed for Egypt by Eng. Sameh Fahmi, the Minister of Petroleum, for Syria by Mohamed Maher Gamal, for Jordan by Wael Sabri and for Lebanon by the Lebanese ambassador in Cairo.

Prime Minister Dr. Atef Ebeid had held a three way session, before signature, with Syrian Foreign Minister Mustafa Miro, and Jordanian Prime Minister Ali Abu Ragheb, during which they reviewed domains of cooperation among the three countries at the economic and commercial level, in the framework of what was called for by the leaders of Egypt, Syria, Jordan and Lebanon, regarding fostering joint Arab cooperation.

Then, the three premiers held an expanded session of talks and then they were joined by members of the four countries delegations.

Lebanese Prime Minister Rafiq AL Hariri had apologized for not coming as he is currently visiting the Sultanate of Oman.

At the beginning of the session, Prime minister Dr. Atef Ebeid said the giant project for transporting Egyptian gas to Syria, Jordan and Lebanon depends on science in exploring feasible projects which are accomplished through participation in production, transport and optimal utilization of natural resources in the Arab world.

He underlined Egypt's commitment to the provisions of the agreement, adding Egypt would put all its potentials for carrying out this project.

He said the implementation of the project will last for 18 months adding implementation simultaneously start in the four countries.

The Syrian Prime Minister said the project would provide job opportunities for youth in the four countries and maintains integration of the four countries expertise.

The Jordanian Prime Minister said the project represents a qualitative step towards developing industries and services in the four countries through optimal utilization of water resources.

Eng. Sameh Fahmi, the Minister of Petroleum said exportation of the Egyptian gas will start immediately after carrying out the pipeline which will start from AL Arish, adding a higher committee would be appointed from the ministers of energy in the four countries in order to follow up the implementation.

He said the project embodies aspirations of the Arab nation for achieve sustainable and sustained development.

He said the area of agreement with his counterparts in Syria, Jordan and Lebanon is more than 90% adding the ratio of disagreement is no more than 10% and revolves around improvement mechanisms.

The signing ceremony was attended by Dr. Youssef Wali, the Deputy Premier and Minister of Agriculture, along with the Ministers of Information, Electricity, Planning, Public Business, Petroleum and Ahmed Abu Taleb, the Secretary General of the Cabinet.

Prime Minister Dr. Atef Ebeid said in statements to reporters that the agreement achieves many benefits to the Egyptian economy mainly the establishment of natural gas associated industries, indicating that a contract was signed in Cairo few days ago for the establishment of a factory for developing natural gas pipes through joint investments with Kuwait.

He said the building of gas pipelines provide job opportunities in contracting, building and designing companies.

He said the political dimension of the project is represented in the fact that it is a significant step towards achieving integration among Arab countries, and fulfills President Mubarak's call for the achievement of Arab economic block.