Egypt seeks to develop its energy sector. Today, Sunday, February 12, Minister of Petroleum and Mineral Resources Tariq Al-Mulla – during his speech following the presidential opening of the EGYPS 2023 conference – unveiled a plan to drill more than 300 exploratory wells.
Al-Mulla explained that Cairo has already started communicating with global partners, and agreeing on a plan until 2025, which includes drilling and exploration works, with the aim of entering those wells into production at a rapid pace.
He said – during the current session of the EGYPS 2023 conference under the title “North Africa and the Mediterranean … Supporting global energy supplies and sustainable demand” – that the launch of the conference coincides with the suffering of the international community from the repercussions of a set of challenges whose effects extended to the entire world.
repercussions of the energy crisis
Egyptian Minister of Petroleum and Mineral Resources, Tarek El-Molla, said that the country’s energy sector has been working to take advantage of Cairo’s competitive potential, with the aim of confronting and adapting the energy crisis.
And he added – during his participation in the activities of the EGYPS 2023 conference – that the Eastern Mediterranean Gas Forum played a pivotal role in this regard. Reflecting the Egyptian role in increasing exports with regional cooperation.
The chart below – prepared by the specialized energy platform – monitors the volume of Egypt’s energy exports and the most prominent sector figures during a year:
He stressed that gas exports from Egypt and the eastern Mediterranean countries witnessed an increase to European markets by an estimated one and a half times, during the past year (2022), following the facilitation of liquefaction operations in Cairo.
He emphasized that Egyptian energy exports were not limited to gas only; Oil exports also increased, amounting to $18.2 billion, and the country’s oil trade balance strengthened for the third year in a row, reaching more than $3 billion.
local development efforts
Minister Tarek El-Molla stated, in his speech during the EGYPS 2023 conference, that the energy sector in Cairo was interested in the research and exploration field. Since its launch in 2021, the “Egypt Digital Exploration and Production Portal” platform has witnessed the launch of 4 international bids in this context.
Work is in full swing to launch 3 international bids, during the current year (2023), as well, in line with plans to drill new wells.
Al-Mulla monitored an aspect of the efforts of the Egyptian oil sector, during the past 8 and a half years, in strengthening and developing the infrastructure. The most prominent of which are: increasing the ports and berths for receiving butane gas tankers, adding 79 warehouses for storing crude and derivatives, renewing transport lines and establishing new lines; Increasing its total length to 1400 km.
This period also witnessed the implementation and operation of the main gas pipelines to support the country’s network, raising its total length to 1,000 km.
The Egyptian energy sector did not ignore interest in the field of oil refining, as 8 new projects were implemented, 3 of which were opened, during the past two years, as El-Molla explained during his participation in the EGYPS 2023 conference.
The sector recorded the highest annual rates – for the fourth consecutive year – of delivery Natural gas The number of cars converted to run on natural gas increased to 500,000, and the number of car gas stations increased to 900.
regional and climate efforts
During his speech at the EGYPS 2023 conference, Minister Tarek El-Molla pointed out that Egypt has succeeded in promoting the right of the African continent to achieve a gradual and fair energy transition, with regard to the issue of climate change.
He said that the Egyptian petroleum sector succeeded in paving the way for the participation of the oil and gas industry in the Climate Summit COP 27, which Egypt hosted last November.
He pointed out that the sector’s organization of the “Carbon Reduction” day for the first time in the history of climate summits and conferences was part of the Egyptian efforts to highlight the concerns of the African continent.
Al-Mulla announced – during the first days of the EGYPS 2023 conference – that starting from the next session of the conference, its activities will be transformed into the “Egypt International Energy Conference and Exhibition.”
He said that this step would broaden the scope of the topics raised during it, including addressing issues of energy transition, emission reduction and hydrogen.
Fossil fuel investments
Egyptian President Abdel Fattah El-Sisi addressed the international oil companies, stressing their impact on the demand for oil and gas in the past years. What affected the volume of investment in fossil fuels and the volume of supply.
Al-Sisi attributed the rise in energy prices to the lack of supply during the two crises of the Corona pandemic and the outbreak of the Russian-Ukrainian war, according to the local newspaper Dar Al-Hilal, quoting his statements during his inspection of the EGYPS 2023 exhibition and conference, today, Sunday.
He said, “We have to deal with the reality of demand and its growth over the coming years, and not be affected by impressions.”
The Egyptian President praised the Eastern Mediterranean Gas Forum and the Egyptian efforts to enhance cooperation with the research and exploration work of gas companies, noting that these efforts will alleviate the global crisis.
He explained that the Eastern Mediterranean Gas Forum will meet the needs of Europe during the coming times.
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