Energy & Utilities
From The Report: Egypt 2022
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Egypt has turned its oil and gas industry around in the years since 2015: heavy investment in this industry now places Egypt in an advantageous position to capitalise on the resurgence of global travel and economic activity. The opening of new transport routes for hydrocarbons will help the country become a global energy centre connecting Europe, MENA and Asia. In addition to redeveloping its oil and gas operations, Egypt is also expanding its renewable energy and nuclear segments as a means of diversifying the energy mix and decarbonising the economy. Indeed, in January 2021 the Ministry of Petroleum and Mineral Resources announced plans to explore nine new oil and gas sites, with an investment of $1.4bn to drill 23 new wells. This should lead to greater energy security and allow the government to meet the needs of a large population.

Articles from this Chapter

Overview

Favourable factors: Developments in the hydrocarbons sector have continued apace to capitalise on the resurgence in global demand
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Egypt’s energy sector proved largely resilient to the initial impact of the Covid-19 pandemic, when demand for fuel and feedstock dropped amid lockdowns and travel restrictions. Heavy investment in the industry, new oil and gas discoveries, and a strong refining industry now place Egypt in an advantageous position to capitalise on the resurgence of global travel and economic activity. In addition to redeveloping its oil and gas operations, Egypt is expanding its renewable energy and nuclear segments…

Analysis

Garnering interest: Exploration and production activity pick up as more players enter the scene after new rounds of bidding
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In the years since 2015, when gas production was low and Egypt had to rely on imports to meet its needs, the government has implemented policies to boost oil and gas output at home. The 2017 Law for Gas Market Activities Regulation helped the authorities attract greater international investment in the offshore segment, and this was further supported by the establishment of the Natural Gas Regulatory Authority. Recent bidding rounds have led to a diverse mix of national and international energy firms…

Analysis

Sustainable supplement: Energy plans to 2030 include the production of green hydrogen
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Alongside a rapidly expanding renewable energy segment, Egypt is looking to adopt hydrogen technology to further diversify the energy mix. The construction of green hydrogen facilities will support the government’s plan to establish Egypt as global energy leader in line with Egypt Vision 2030. The International Energy Agency believes that hydrogen will be an integral part of a net-zero emissions future, and many nations seem to agree: from 2019 to 2021 the number of national hydrogen strategies…

Analysis

Smaller footprint: A growing focus on sustainability in hydrocarbons-associated industries is supporting the transition to net-zero emissions
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As environmental, social and governance concerns become increasingly important in the corporate world, insurance companies are emerging as potentially key players in the shift away from fossil fuel-powered projects. The launch of the UN-convened Net-Zero Insurance Alliance (NZIA) in July 2021 reflects the global industry’s wider recognition of climate risks. Net Zero The NZIA was founded by eight of the world’s biggest insurers and reinsurers that are committed to transitioning their underwriting…