Energy security is common cause for consumers and producers alike. Policymakers from the EU, Africa and the Middle East rallied around the same cause in Sharm El-Sheikh last week. Sherine Nasr listened in Will dialogue among northern and southern countries of the Mediterranean help stabilise the international energy market despite all odds? Energy experts and senior officials who convened in Sharm El-Sheikh last week to discuss the matter seemed convinced that joint cooperation is vital to strike a balance between energy demand and supply, and ensure that developing countries have sustainable access to energy. Against a backdrop of geopolitical trauma in many parts of the region and as skyrocketing oil prices are about to hit the seldom thought of $100 per barrel ceiling, the EU-Africa-Middle East Energy Conference, lately hosted by Egypt, gained greater weight. Hosted by the European Commission and Egypt, the conference brought together key energy players from the EU, Africa and the Middle East to debate the common challenges and policies in the field of energy security. "The European Commission is determined to expand the EU's energy relations with its partners building on the bilateral and regional initiative," said Benita Ferrero-Waldner, External Relations and European Neighbourhood Polity commissioner. She said the main objective behind the event is to enhance energy security in the region through identifying a limited number of targeted trans-regional actions between EU and its Mediterranean partners. Ferrero-Waldner was referring to the EU-Egypt joint Action Plan (AP) agreed by the EU foreign ministers, the European Commission and Egypt in March 2007. One of the objectives of this action plan is to develop, among other things, cooperation in the energy sector. According to the AP, Egyptian-EU energy networks are to be developed, including transportation of natural gas to the EU via the Arab gas pipeline, enhancing energy efficiency and introducing greater use of renewable energy while cooperating in the oil and gas industry. In the meantime, Egypt's role in the multilateral and regional dialogue between the EU and the region is fundamental. "As a bridge between energy partners in the EU, Africa and the Middle East, Egypt can play a key role in this context," commented Sameh Fahmi, minister of petroleum and mineral resources. Egypt is completely aware of the current situation on the international arena and is committed to support the international community in this regard, he added. The issue of securing sustainable energy supplies at an affordable price has lately been underlined as the prime concern of the majority of countries as oil consumers or producers alike. For developing countries, secure and sustainable access to energy is a key priority. Forecasts given by the International Energy Agency indicate that the world's energy needs will increase by more than 50 per cent by 2030 compared to the current levels. "This increase in demand raises serious concerns about long-term sustainability. For the Middle East and North Africa countries, energy needs are expected to increase annually by 2.9 per cent due to increasing demands for electricity and the production of fresh water by desalination," according to the World Energy Outlook, 2006. Figures given by the IEA about Africa indicate a rather grim picture of the black continent despite the abundance in minerals, new and renewable energy resources. "There is the sad reality that around a billion person -- most of whom live in Africa -- do not have any access to energy services. According to the World Bank, 8.27 billion euros per year until 2030 will be required to provide all of Sub-Sahara Africa with electricity," said the report. A look at the international scene at large would reveal how complicated things are becoming in the energy market. According to Fahmi, other factors than the growing energy demand and spiking prices triggered by geopolitical tensions have been dominating the market. "The limited refining and storage capacities worldwide, inaccuracy of future supply and demand data, the under investment in oil and gas projects and the over-priced offshore and onshore rig rates can not be overlooked as major challenges in the sector," said Fahmi. This is why energy security has risen to the top of the political agenda of the G-8 and has extended to catch the attention of the developing countries, emerging economies and energy exporters. Traditionally, energy security was limited to security of supplies and the right of consumers to receive adequate supplies at affordable prices. "The concept has lately expanded to include the producing countries' right to ensure the availability of long-term consumers who are willing to pay market prices that justify the necessary investments needed to produce adequate on-stream capacity," noted Fahmi. Thanks to these challenges, a global consensus to address these issues collectively has been growing among nations. "We are fully aware of the combined energy potential of the three regions gathered here. We represent a global market of more than 1.5 billion consumers," commented Ferrero-Waldner who added that the EU firmly believes in the common interest to use this market for the economic development and well-being of all the countries in the three regions. For this end, the EU has lately signed a number of energy partnership agreements. On the bilateral level, an energy work programme was signed with Jordan and Morocco. A similar agreement has been finalised with Algeria and a possible energy programme is now being discussed with Libya. "We are ready to sign an energy partnership with Egypt," said Ferrero-Waldner. Held a few days after President Hosni Mubarak declared Egypt's initiative to venture into the era of introducing nuclear power for peaceful purposes, the conference provided a good opportunity to stress the EU's stance of the Egyptian initiative. "The European Commission can support the EU in developing the culture of safety that is so important for nuclear energy. We can consider offering support in some key areas including legislation, training and technical expertise," said Ferrero-Waldner who stressed the fact that the question of infrastructure for civil nuclear power are for member states not the European Commission. Meanwhile, the EU is promoting the access of Middle East and West Africa natural gas to the EU market via pipelines such as the Arab Gas Pipeline originating in Egypt, a planned connection to Iraq and the important trans-Saharan pipeline from Nigeria to the EU via Algeria. Moreover, a regional natural gas centre established in Damascus, which aims to enhance gas market integration and promote export to the EU, can now be expanded to cover also integration of electricity markets. Being one of the major liquefied natural gas exporters to Europe, Egypt highlighted some priority areas where it would seek more EU cooperation. "We are looking forward for more support by the EU to accelerate our ongoing efforts to restructure the petroleum sector. We also need more European investment into the fields of exploration, development of new refineries, distribution networks and export-oriented projects," said Fahmi. "Meanwhile, Egypt will continue to play a positive role in producers-consumers dialogue for the best interest of all parties."
