By Timour Azhari
DAMASCUS, July 18 (Reuters)
The U.S. is working on an energy-positive project approach this time around and will collaborate with Syria, thanks to the lifting of sanctions by Donald Trump. Energy plays a very crucial role. We need it to operate in life in general. Power, electricity, cars and many more. Energy is about rebuilding lives after years of conflict and instability in many parts of the world, not just about turning on lights and filling up cars. The businesses that take over when sanctions are removed and opportunities arise frequently influence not only the economy but also the stability of entire communities in the future.
Energy plans are underway for Syria after the tightest sanctions regimes are lifted
U.S.-based firms Baker Hughes BKR.O, Hunt Energy and Argent LNG will develop a master plan for Syria’s oil, gas and power sector, Argent LNG CEO Jonathan Bass said on Friday, in a partnership aimed at rebuilding energy infrastructure shattered by 14 years of civil war. The move marks a swift turnaround as U.S. companies enter a country previously under one of the world’s tightest sanctions regimes that Trump lifted at the end of June.
The companies plan to help explore and extract oil and gas and produce power to help get the economy running as the government seeks to put Syria back on the map. The plan comes after a dash by other companies, many from Gulf Arab states, to sign deals to bolster Syria’s power generation and ports infrastructure. Details of the plan have not been previously reported.
An energy master plan is being developed despite two companies withholding their responses
Bass told Reuters via phone,
“We are initiating the development of a comprehensive masterplan for energy and power generation in Syria, based on a preliminary assessment of opportunities for near-term improvements in generation capacity and service delivery.”
He also added,
“Our efforts aim to support the revitalization of the energy sector in coordination with relevant stakeholders. This includes potential activities across the value chain—from exploration and production to electricity generation, including combined-cycle power plants.”
Argent LNG, which is developing a liquefied natural gas export facility in Louisiana, in January signed a non-binding agreement to supply Bangladesh up to 5 million metric tonnes of the fuel annually, the first major U.S. LNG supply deal since Trump began his second term. Reuters received no immediate response to emailed questions to global energy services provider Baker Hughes, and Hunt Energy declined to comment.
An economy in disarray: The significance of a feasible energy strategy
The plan is to begin with areas west of the Euphrates River, under the control of the Syrian government. This new strategy is like an answered prayer for Syria. For a very long time, they have faced outages and blackouts, and you can imagine how that has affected not only individuals but businesses too, especially those that NEED electricity or power to fully function. Therefore, having reliable and consistent energy just makes life better and easier.
After 14 years of war, Syria’s electricity sector is severely damaged, generating only 1.6 gigawatts of electricity, down from 9.5 gigawatts before 2011. Billions of dollars of investment are needed to fix the sector, so the cash-strapped state is looking at private investment or donors to foot the bill. In May, Syria signed a memorandum of understanding with Qatar’s UCC Holding to develop $7 billion worth of power generation projects, including four combined-cycle gas turbine power plants and a 1,000-MW solar power plant in southern Syria. We are hoping to see a great change ahead with the energy supply.