Egyptian Minister of Petroleum Tarek El-Molla said that Egypt was affected by global fluctuations during the past year (2022), but it has adapted its capabilities and resources – especially in the natural gas sector – to expand exports to the European market, after achieving self-sufficiency locally.
He added that what happened to the markets recently and the challenges faced by the energy industry prove the need for the continuation of traditional energies – referring to fossil fuels – in the energy mix, especially with the difficulty of achieving an immediate energy transition.
The Egyptian Minister of Petroleum, Tarek El-Molla, adhered to emissions-reducing technologies and the necessity of integrating them into the oil and gas industries, stressing at the same time that the lack of investment was a major reason for the markets falling under the pressure of a lack of supplies, according to statements in the first electronic issue of the petroleum magazine issued by the ministry, which obtained a platform. Power on a copy.
global challenges
The Egyptian Minister of Petroleum, Eng. Tarek El-Molla, confirmed that the first quarter of last year (2022) was the starting date for the challenges facing the global energy industry, which cast a shadow on Egypt.
He added that the global energy supply faced a gap, for several reasons, including the lack of investment in recent years in exploring new oil and gas resources, and global pressures to accelerate the pace of energy transition and limit fossil fuels.
He explained that the Ukrainian war and the cessation of Russian flows reinforced that gap, as renewable energies were not sufficient to bridge it and meet demand, which prompted oil prices to rise, exceeding $120 a barrel at times, after which the market witnessed price fluctuations, which have now dropped to $85 per barrel.
Al-Mulla said that these fluctuations caused an increase in operational costs, and they also exacerbated supply chain crises.
On the Egyptian level, the Minister of Petroleum indicated that there was a parallel move to reduce the impact of the crisis, especially since Cairo depends mainly on fossil fuels, explaining that his country, although it is an exporter of natural gas, imports part of crude oil and derivatives and bears the financial burdens for that.
local procedures
Tariq Al-Mulla said that the ministry launched an expanded exploratory drilling program in the Mediterranean, to access latent reserves and increase gas resources.
And he added that global and local challenges had to be faced by increasing the pace of oil and gas exploration, to increase reserves and production, and to provide a local product that would contribute to reducing imports.
The Egyptian minister added that Egypt resorted to rationalization of consumption and techniques to raise the efficiency of use, with the aim of enhancing the utilization of resources.
He revealed that Egypt continues to complete projects related to refineries, most notably the expansions of the “Midor” refinery and the Anopec complex in Assiut, to ensure the availability of oil products needs locally, gradually reduce their imports, and reach self-sufficiency in gasoline and diesel.
And he stressed that the refining system – which has been developing since 2016 – is gaining increasing importance in light of the problems of supply chains and the large rises in the prices of oil products globally.
The Egyptian Minister of Petroleum praised the convening of the 6th edition of the Egypt International Petroleum Conference (EGYPS), noting that it was an Egyptian platform that included the most important investors in the oil and gas industry globally.
He explained that EGYPS has strengthened Egypt’s image to the world as a regional center for energy circulation and trade, with advantages that enhance investments and opportunities for cooperation as an international and regional partner.
Egyptian Minister of Petroleum Tarek El-Molla said that EGYPS is set to turn into the “Egypt International Energy Conference” in search of more opportunities for cooperation in the fields of: low-carbon hydrogen, green ammonia, carbon capture, storage and use technologies, and reducing emissions from the oil and gas industry.
Gas wealth
Egyptian Minister of Petroleum Tarek El-Molla said that to face the global challenges of the energy industry as well, Egypt seeks to benefit from the gas export infrastructure, which is an important competitive advantage that Egypt possesses in the region, noting that challenges generate opportunities.
He continued, “In light of an increasing regional and international demand for natural gas supplies, Egypt – which has already become a regional center for gas circulation and trade – was one of the ready solutions to contribute to meeting part of this demand.”
The chart below – prepared by the specialized energy platform – reveals the most prominent countries that imported Egyptian liquefied gas, during the first 9 months of last year (2022), according to OAPEC data:
He pointed out that this step comes as an investment in Cairo’s large energies at the liquefaction and gas export stations in Idku and Damietta on the Mediterranean, which helped it receive gas from the eastern Mediterranean fields to re-export it through it to foreign markets, especially the European market.
He pointed out that since Egypt achieved self-sufficiency in natural gas, it exports its surplus production, and is moving to secure new quantities from the eastern Mediterranean, for re-export in light of the availability of surplus capacities in the liquefaction and gas export stations.
Energy shift
The Egyptian Minister of Petroleum agreed with the school aiming at the fact that the transition to relying on clean energy will not happen immediately, pointing out that this step requires great efforts and huge investments.
“Besides, this transformation requires a space of time to implement and operate clean energy projects, especially since the recent global challenges have proven that the world still needs traditional energies,” he said.
He explained that the repercussions of global challenges helped show the importance of natural gas as the best fossil fuel, as it has environmentally friendly properties and is a fuel for the transitional phase towards a full energy transition.
Al-Mulla linked this vision to what was highlighted during the Climate Summit COP 27 – which Egypt hosted last November – when the ministry and local and international oil and gas companies participated for the first time in the history of climate summits.
In line with this trend, the Egyptian Minister of Petroleum indicated that a day was devoted to reducing carbon emissions with the participation of oil and gas industry entities, with the aim of applying solutions to climate change and presenting effective initiatives to continue producing traditional fuels, especially natural gas.
Al-Mulla said that this is done through the use of modern technologies to preserve the environment during the production process, by capturing and storing carbon and benefiting from it instead of polluting the environment.
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