Potential of Energy Integration in Mashreq and Neighboring Countries
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Report No. 54455-MNA Public Disclosure Authorized Potential of Energy Integration in Mashreq and Neighboring Countries June 2010 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Copyright Energy Sector Management Assistance Program (ESMAP) reports are published to communicate the results of ESMAP's work to the development community with the least possible delay. Some sources cited in this paper may be informal documents that are not readily available. The finding, interpretations, and conclusion expressed in this report are entirely those of the author( s) and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its board of executive directors for the countries they'represent, or to ESMAP, The World Bank and ESMAP do not guarantee the accuracy ofthe data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, other information sown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement of acceptance of such boundaries. Acknowledgement This report was written by a team consisting of Husam Beides (Sr. Energy Specialist, team leader); Hossein Razavi, Doug Bowman, and Khalid Boukantar. The team is grateful for the guidance provided by Jonathan Walters, Sector Manager, and comments provided by peer reviewers Jonathan d'Entremont Coony, Franz Gerner and Sameer Shukla. The report was prepared under the context of the World Bank Arab World Initiative and was supported in part by ESMAP. The Financial and technical support by the Energy Sector Management Assistance Program (ESMAP) is gratefully acknowledged. ESMAP-a global knowledge and technical assistance partnership administered by the World Bank and sponsored by official bilateral donors-assists low and middle income countries, its "clients," to provide modem energy services for poverty reduction and environmentally sustainable economic development. ESMAP is governed and funded by Consultative Group (CG) comprised of official bilateral donors and multilateral institutions, representing Australia, Austria, Canada, Denmark, Finland, France, Germany, Iceland, the Netherlands, Norway, Sweden, the United Kingdom, and the World Bank Group ABBRBVIATIONS AND ACRONYMS AERF Arab Electricity Regulators' Forum AC Alternating current AFPC Al Furat Petroleum Oil Company AGP Arab Gas Pipeline AUPIDE Arab Union of Producers, Transporters and Distributors of Electricity bbl Barrel bem Billion cubic meters bcma Billion cubic meters per annum BOO Build-own-operate BOT. Build-own-transfer BOTAS Oil and Gas Pipeline Corporation (Turkey) BOOT Build-own-operate-transfer BTE Azeri-Turkish Baku-Tbilisi-Erzerum BTU British thermal unit CCGT Combined cycle gas turbine CEGCO Central Electricity Generating Company CFB Circulating fluidized bed CNG Compressed natural gas DC Direct current EAMGCC Euro-Arab Masbreq Gas Co-operation Centre ECA Energy conversion agreement ECSEE Energy Community of South East Europe EDC Electricity Distribution Company EdL Electricite du Libon EE Energy efficiency EEHC Egyptian Electricity Holding Company EGAS Egyptian Natural Gas Holding Company EGPC Egyptian General Petroleum Corporation EIA Energy Information Administration (US); environmental impact assessment EIB European Development Bank EULST Egypt-Iraq-Jordan-Lebanon-Syria-Turkey ELTAM Egypt-Libya-Turkey-Algeria-Morocco EMRA Electricity Market Regulatory Authority EPC Engineering, procurement and construction (contract) ERC Electricity Regulatory Commission EU European Union EUAS Electricity Generation Company of Turkey GCC Gulf Cooperation Council GE General Electric GSA Gas sales agreement GPC General Petroleum Corporation (WBG) GWh Gigawatt hour HFO Heavy fuel oil HVDC High-voltage direct current IDB Islamic Development Bank lEA International Energy Agency IGAT Iranian Gas Trunkline lNOGATE Interstate Oil and Gas Transport to Europe IOC International Oil Company IPP Independent power producer JEPCO Jordan Electric Power Company kV Kilovolt kWh Kilowatt hour LNG Liquefied natural gas LPG Liquid petroleum gas LTAM Libya-Tunisia-Algeria-Morocco mbl Million barrels mcm Million cubic meters MEDELEC Euro-Mediterranean Electricity Cooperation (European) MED-EMIP Euro-Mediterranean Energy Market Integration Project MED-REG ,Mediterranean Working Group on Electricity and Natural Gas MEMR Ministry of Energy and Mineral Resources (Jordan) MEW Ministry of Energy and Water MMBTU I million British thermal units mmscm Million standard cubic meters MTOE Million tons of oil equivalent MVA Megavoltampere MW Megawatt NEPCO National Electric Power Company (Jordan) NERC National Energy Research Center NGL Natural gas liquids NIGC National Iranian Gas Company NIOC National Iranian Oil Company O&M Operations and maintenance PA Palestinian Authority p.a. Per annum PEA Palestinian Energy and natural Resources Authority PERC Palestinian Energy Regulatory Commission PETL Palestinian Energy Transmission Company PNA Palestinian National Authority PEEDEE Public Establishment for Distribution and Exploitation of Electric Energy PEEGT Public Establishment for Electricity Generation and Transmission (Syria) RCREEE Regional Centre for Renewable Energy and Energy Efficiency RE Renewable energy SCADAIEMS Supervisory Control and Data Acquisition! Energy Management System SGC Syrian Gas Company SGDC Syrian Gas Distribution Company SIGIR Special Inspector General for Iraq Reconstruction TA Technical assistance tcm Trillion cubic meters TGI Turkey-Greece-Italy TEIAS Turkish Electricity Transmission Company TEN Trans-European Network TETAS Turkish Electricity Trading and Contracting Company TPS Thermal power station TSO Transmission system operation TWh Terawatt hour (= I billion kWh) UAE United Arab Emirates UCTE Union for the Co-ordination of Transmission of Electricity WBG West Bank & Gaza YTL Turkish Lira and New Turkish Liras TABLE OF CONTENTS Page EXECUTIVE SUMMARY ........................................................................................................................ 1 Chapter 1. Introduction and background ............................................................................ 29 Chapter 2. Egypt Prospects For Energy Integration .......................................................... 32 2.1. Overview ................................................................................................................... 32 2.2. Power Sector Structures ............................................................................................. 32 2.3. Electricity Demand and Supply .................................................................................. 35 2.4. Gas Sector Structure .................................................................................................. 41 2.5. Gas Sector Demand and Supply ....................: ........................................................... .43 Chapter 3. Iraq Prospects For Energy Integration ............................................................. 46 3.1. Overview ................................................................................................................... 46 3.2. Power Sector Structure .............................................................................................. 46 3.3. Electricity Demand and Supply .................................................................................. 48 3.4. Gas Sector Structure .................................................................................................. 56 3.5. Gas Demand and Supply ............................................................................................ 56 Chapter 4. Jordan ProspeCts For Energy Integration ........................................................ 60 4.1. Overview ................................................................................................................... 60 4.2. Power Sector Structure .............................................................................................. 60 4.3. Electricity Demand and Supply .................................................................................. 62 4.4. Gas Sector Structure .................................................................................................. 68 4.5. Gas Demand and Supply ............................................................................................ 69 Chapter 5. Syria Prospects For Energy Integration ........................................................... 72 5.1. Overview ................................................................................................................... 72 5.2. Power Sector Structures ............................................................................................. 72 5.3. Electricity Demand and Supply .................................................................................. 73 5.4. Gas Sector Structure .................................................................................................. 82 5.5. Gas Demand and Supply ............................................................................................ 83 Chapter 6. Lebanon Prospect For Energy Integration ....................................................... 86 6.1. Overview ................................................................................................................... 86 6.2. Power Sector Structure .............................................................................................