- Israel’s launch of first pipeline gas deliveries from the Leviathan field to Egypt, while politically momentous, has less economic justification.
- The move will strengthen Egypt’s LNG plans, but competition among East Med gas export ambitions will persist with no project expected to emerge a clear winner at this time.
- The viability of any regional gas export project remains in question due to concerns about project economics, geopolitical tensions, and shifting market, climate and demand contexts.
Recent Posts
Turkish power sector looks for COVID-19 restructure
Jon Gorvett
Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
Climate change and migration – the next big challenge for MENA?
The level of disruption caused by the coronavirus pandemic has revealed how ill-prepared governments and international institutions are for anything beyond their routine activities. When normality is once again restored, the world must learn the lessons from today’s events in order to prepare for, and mitigate, the worst effects of an even bigger challenge: climate change and global warming. For the MENA region, one of the most pressing questions will be how to handle flows of people displaced by climate change.
How will MENA handle mass urbanisation?
Perhaps more than anywhere else in the world, rapid urbanisation in the MENA region will create significant investment opportunities for a variety of domestic and foreign firms. North Africa will see high-volume, low-tech developments, while capital-intensive projects such as rail and smart cities will be concentrated in higher-income nations in the Gulf. Elsewhere, a widening urban infrastructure deficit will stoke social instability.