SYRIA - The Gas Sector.

Allaw's ministry is pushing ahead with plans to boost production of natural gas with construction of three gas treatment plants. To be completed by 2010, these plants would increase gas output by 15 MCM/day to 37 MCM/day. Gas demand in Syria is rising amid a rapidly growing population, increased industrial requirements and the need to inject gas into oilfields to maintain or boost output.

Gas consumption now is averaging about 22 MCM/day - far below demand - and of this about 5 MCM/day are re-injected into the oilfields, with the rest going to the power and industrial sectors. Gas consumption is to projected to reach 40.7 MCM/day by 2012 and 50 MCM/day by 2010. The share of gas re-injection will rise as oilfields will continue to lose reservoir pressure (see OMT & Gas Market Trends No. 11). Much of the gas will be imported. Gas imports will reach 3.7 MCM/day by 2012 and 14 MCM/day by 2020 from Egypt, Iran, Iraq and Russia. Imports of gas from Egypt will begin before end-March 2008, coming via Jordan by pipeline (see Gas Market Trends No. 13).

The first gas turbine in Syria was installed in 1972, at the Suwaidiyah power plant, in order to utilise associated gas for electricity. The shift to gas for energy was very limited and slow until the mid-1980s. The number of gas turbines installed in the country has increased rapidly since 1985. The share of gas-generated electricity in Syria rose from 0.1% in 1982 to 3.3% in 1984, 3.8% in 1985, 6.4% in 1986, 7.5% in 1987, and 5.8% in 1988. During those years power requirements had increased considerably over those in 1972, so this share involved a large capacity.

This year, the share of natural gas in Syria's total energy consumption is expected to exceed 36%. Natural gas is also used in the production of fertilisers, and in the cement, ceramics and metals industries. The share of gas in power generation rose from 0.1% in 1982 to 3.3% in 1984, 3.8% in 1985, 6.4% in 1986 and 7.8% in 1987. It reached almost 18% in 1995 and over 20% in 1997, while the country's energy consumption base has increased considerably during the past 11 years.

The shift away from oil will entail the laying of 1,160 km of new gas pipelines. This will supply new power plants, as well as a growing fertiliser sector, an iron and steel complex and other industries as well as household users.

Under two contracts worth $370m and awarded in early December 2005 by the state-owned Syrian Gas Co. (SGC), Stroitransgaz of Russia is building a gas gathering system of three plants - in the South Middle Area Gas Project - to collect 6-7 MCM/d of raw gas from 17 wells in three fields, Abu Rabah, Qumqum and Shamal al-Fayd, and a treatment plant which will produce 6 MCM/d of gas, 62 t/d of LPG and 4,032 b/d of condensate. The contract for this was to be implemented in 22 months.

The second contract has covered construction of a 36-inch, 324-km 18 MCM/d gasline from the Jordanian-Syrian border to bring Egyptian gas to the Rayan gas compression station, about 15 km from Homs. This is now complete and includes a 14-km spur line to the Deir Ali power station south of Damascus. The second contract involves a part of the Arab Pipeline System to supply Europe and Turkey with Egyptian gas from Syria (see Gas Market Trends No. 12).