Energy
From The Report: Egypt 2017
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Egypt is one of Africa’s main oil and gas producers, but it is also the continent’s largest consumer of energy. Both oil and gas are found throughout the country in multiple onshore and offshore regions, including the Mediterranean Sea, which is emerging as a major new gas basin. Nevertheless, sourcing enough supply to meet demand is the sector’s central challenge, even as these discoveries are expected to contribute significantly to meeting demand within the next few years. With discoveries in 2016 and the expectation of future upstream findings, Egypt is well on its way to addressing the supply side of its energy provision problem. Managing demand increases through subsidy cuts is a longer-term proposition, and Egypt is working to become a net energy exporter again.

This chapter contains an interview Tarek El Molla, Minister of Petroleum and Mineral Resources.

Articles from this Chapter

Overview

Supply-side boost: Recent resource discoveries aim to bridge national energy deficit
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Egypt is one of Africa’s main oil and gas producers, but it is also the continent’s largest consumer of energy. Both oil and gas are found throughout the country in multiple onshore and offshore regions, including the Mediterranean Sea, which is emerging as a major new gas basin. Nevertheless, sourcing enough supply to meet demand is the sector’s central challenge, even as these discoveries are expected to contribute significantly to meeting demand within the next few years. Supply &…

Interview

Finding solutions: Tarek El Molla, Minister of Petroleum and Mineral Resources, on balancing energy resources and private sector participation
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Interview: Tarek El Molla How can the private sector better align with and contribute to Egypt’s national energy strategy? TAREK EL MOLLA: The strategic vision for the sector seeks to maximise private sector participation in oil and gas activities in a more effective manner, particularly in the petroleum industry, which has promising opportunities for fruitful partnerships with qualified private sector companies that have the technical and financial capability. In terms of the refining and petrochemicals…

Analysis

Revising the plan: A programme to secure more sustainable energy sources is being reassessed
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Egypt’s ambition to generate 20% of electricity by renewable sources is facing some challenges. The country is rich in solar and wind resources, but Egypt is still navigating hurdles in search of the ideal legal regime to encourage investment whilst also protecting the state’s balance sheet from risky commitments. Although there was some success in attracting investment through several methods, the country is seeking a longer-term solution through the use of feed-in tariffs (FITs). This effort…

Analysis

Composition makeover: Sector undergoing reforms to regulations and the energy mix
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Egypt’s power sector is racing to cope with demand, which is growing at the relatively high rate of about 6% per year. The rate is attributed to a fast-growing population and a subsidy regime that suppresses the price of electricity below a cost-reflective level that would normally encourage conservation. The state has a long-term plan to phase out the subsidies, encourage efficient use and broaden the energy mix. Egypt currently relies on natural gas for approximately two-thirds of its power…

Analysis

Supplier investment: Private sector companies invited to import needed gas supply
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Egypt’s downstream energy markets are tightly regulated in terms of the prices consumers pay for the commodities and the scope of private sector participation. Still, the state has long promised a loosening of controls and increased opportunities for investment. A major step toward that type of deregulation is now under way, due to the creation of a new market for downstream supply of natural gas. Market Law The new draft law working its way through the state’s system of approvals will create…