By Daniel Fineren / Reuters
DUBAI: The Arab Fund for Economic and Social Development has commissioned a feasibility study for creating a single energy market from Morocco to Oman, the Italy-based consultancy who will conduct it said on Monday.
CESI Middle East has been contracted by the Kuwait-based development fund to come up with a plan for integrating by 2030 the loosely connected electricity and natural gas networks of 20 Arab countries across the Middle East and North Africa (MENA).
“The study will identify key infrastructures to be developed or enhanced to maximize the use of the nation’s gas resources,” Matteo Codazzi, CEO of CESI, said.
“Once deployed, those infrastructures will significantly foster the economic development of the region and benefit each of the 20 participating countries.”
Compared to the highly inter-linked networks of Europe, interconnections between the less developed national networks of the MENA region are few and far between, with little energy trade between those with large amounts of gas or electricity to spare with those that are short of energy.
The Arab Fund for Economic and Social Development was set up by the League of Arab States in the late 1960s to help drive economic and social development across the region.