The Completion of the Pan Arab Interconnection and Energy Trade Study
The consortium CESI/Ramboll recently completed the remaining four tasks (Tasks 4 through 7) of "The Pan Arab Interconnection and Energy Trade between the Arab Countries" study which is financed by a grant from the Arab Fund. The study aimed at determining the best electrical and natural gas trade scenario for the Arab countries to minimize the total cost of electricity generation for the period 2012-2030.
The contract for the study was signed in February 2012, and the scope of the work included seven tasks. In Task 3 of the study, the consortium recommended the construction of six new electrical interconnection projects, two new natural gas pipelines, and one LNG facility. These nine new projects represented the preferred scenario for upgrading the electrical and natural gas trade facilities between the Arab countries.
In Tasks 4 through 7 of the study, the consortium estimated the costs and benefits, along with the financial returns, for the new electrical interconnection and natural gas projects identified in Task 3 of the study, and developed schedules for implementing these projects.
The consortium also identified the potential bottlenecks in the internal electrical networks of the various Arab countries, as a result of the increased expected power and energy exchanges identified in the preferred scenario, and developed an integrated financial model that could be used by the various Arab countries to price the cross border trade of electricity and natural gas.
The consortium presented the findings of Tasks 4 through 7 during a meeting held in Doha, Qatar, during the period November 4th-5th, 2013. The presentation was attended by the members of the study team, members of the study steering committee, and the focal points from the various participating countries, along with concerned technical staff from the Arab Fund.
A final meeting to present the complete study results will be held in the Arab Fund Headquarters building in Kuwait, during the period January 14th -15th, 2014. In addition to the study team members, steering committee members, and focal points, the meeting will also be attended by high ranking officials from the electricity and energy companies in the Arab world.