Challenges for Iraq’s energy sector

In consequence of daily blackouts and electricity shortage, Iraq has launched projects to improve its energy supply. With a total supply of 9,000MW peak period demands of 14,000MW cannot be met. The Ministry of Electricity has initiated a programme aiming to deliver up to 32,000MW of power by 2030. As the fastest growing project market in the region with projects worth USD 363bn, Iraq offers a wide range of investment opportunities. Recently a contract with a French company has been signed to construct a plant with a capacity of 728MW. To realise the project the French company plans to invest USD 539m. The Iraq Energy EXPO and Conference, which will be held in April 2012, will promote further projects and will provide an outlook of Iraq’s future potential in the energy sector.

Positive prospects for Jordan’s economy

Due to a new government and a new economic plan, Jordan’s economy is expected to see growth. H.E. Awn Khasawneh, the new Prime Minister, has set fiscal stability, tackling corruption and addressing the problem of social and economic inequality as major priorities. Measures such as cutting the budget deficit as well as public debt, stimulating investment and increasing employment opportunities for Jordanians should improve the state of Jordan’s economy. Challenges such as declining production and regional instability have to be faced, too. The economic sanctions imposed on Syria have also influenced the Jordanian economy, because Syria was an important trading partner and transit country to other markets. The new changes in economic policy nourish the hope that Jordan’s economy will expand. The IMF forecasts a positive outlook and predicts that the Jordanian economy will grow by 2.9% in 2012.

Kuwaiti company orders 35 aircrafts from Airbus

The Kuwaiti company ALAFCO has purchased an additional 35 aircrafts from the European aircraft manufacturer Airbus. Last year ALAFCO already ordered 50 aircrafts of the same model (A320 NEO) during the Dubai Air Show. Ahmad Alzabin, the CEO of ALAFCO, is very pleased with the Airbus model, due to its low fuel consumption, operational reliability as well as its cost effectiveness, and expects a strong demand for the model. Currently the A320 is Airbus’ most popular model and the company has already sold 8,300 aircrafts of this type, purchased by more than 350 customers worldwide. Its successor the A320 NEO is believed to be even more environmentally friendly.

Lebanon plans to develop its gas sector

Lebanon is expected to harbour large gas and oil reserves near its coast and could emerge as an important gas producer in the region. H.E. Gebran Bassil, the Lebanese Energy Minister, expects that the exploration for offshore gas reserves will begin in about three months. By staying on schedule, contracts with international oil companies whichhave already indicated their interest could be signed by the end of the year. Companies from Europe, the US, Russia and China are willing to pipe Lebanon’s oil. If issues about ownership can be resolved and the region’s stability is not threatened then its developing oil and gas sector will significantly fuel Lebanon’s economy.

Moroccan government tenders new wind projects

Morocco’s energy sector, which to this day has to import 95% of its energy needs through mainly fossil fuels, aims to further expand its strategy of developing renewable energies, including wind power. The Moroccan government seeks to cover 42% of the country’s energy needs through solar and wind power and plans to invest EUR 9bn until the year 2020. Therefore the government has announced a tender for five new wind farms expected to create additional 850MW with a value of about EUR 2.8bn. Morocco is keen to achieve an annual wind power capacity of 2GW by 2019. Three bids have already been received and financial close is expected to be achieved by July 2012. The project is planned to be commissioned by July 2014.