Reuters: US companies to develop energy plan for Syria

Jonathan Bass, CEO of Argent LNG, announced on July 18 that Hunt Energy, Baker Hughes, and Argent LNG will develop a master plan for the development of Syria’s oil, gas, and energy sectors as part of a partnership aimed at restoring the energy infrastructure devastated by 14 years of civil war.

According to Reuters, this move marks a rapid shift as American companies enter a market previously subject to one of the world’s strictest sanctions regimes, lifted by former US President Donald Trump.

The companies plan to engage in exploration and production of oil and gas, as well as electricity generation to support the economy, as the Syrian government seeks to reintegrate the country into the global arena. This plan follows efforts by other firms, many from Gulf countries, to sign agreements to strengthen Syria’s energy and port infrastructure.

“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,” Bass told the agency by phone.

“This includes potential activities across the value chain—from exploration and production to electricity generation, including combined-cycle power plants,” he added, declining to provide further details.

After 14 years of war, Syria’s electricity sector has been severely damaged and currently produces only 1.6 gigawatts of power compared to 9.5 GW before 2011. Restoring the sector requires billions of dollars in investment, and the cash-strapped state is seeking private investors or donors to cover costs.

In May, Syria signed a memorandum of understanding with Qatari company UCC Holding to develop power projects worth $7 billion, including four combined cycle power plants and a 1,000 MW solar power plant in southern Syria.

In a LinkedIn post on July 17, Syrian Finance Minister Yisr Barnieh announced that three American companies are forming a coalition to invest in Syria and develop the country’s energy sector.

By Vugar Khalilov