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Egypt to unveil new energy strategy

16 March 2023

Egypt is preparing to set out its new energy strategy in the coming weeks, according to the country's Petroleum & Mineral Resources Minister Tarek el-Molla.

His ministry last presented its Integrated Sustainable Energy Strategy 2035 with the Electricity & Renewable Energy Ministry in 2016.

In February, El-Molla said that the state is planning to offer three international gas and oil tenders this year and has an “ambitious plan” to drill more than 300 exploration wells by 2025.

Egypt has increased natural gas exports to Europe in the wake of Russia’s invasion of Ukraine and as European nations look to North Africa to replace oil and gas imports.

While increasing oil and gas production is expected to form a key part of the new energy strategy, so is boosting renewable energy projects.

At the UN climate conference Cop27 in November, Egypt brought forward its goal of sourcing 42 per cent of its energy from renewable sources from 2035 to 2030.

Currently, renewable energy supplies about 20 per cent of Egypt’s needs.

Energy subsidy reform, energy efficiency, renewable energy and hydrogen will all be key pillars of the energy strategy, according to El-Molla.

Eni’s discovery of the large Zohr gas field in the Mediterranean waters in 2015 elevated Egypt’s status as a significant upstream market globally, and the country’s government intends to continue to attract more exploration and production players on the back of this success.

Egypt’s hydrocarbons reserves spiked in 2022 with 53 new oil and gas discoveries: 42 oil wells and 11 gas wells, according to the Petroleum & Mineral Resources Ministry. The discoveries were made in Egypt’s Western Desert region, the Suez Gulf, the Mediterranean Sea and the Nile Delta.

So far in 2023, US-based Chevron, which operates the Nargis offshore concession in the East Mediterranean, together with its partners Eni and Egypt’s Tharwa Petroleum, has announced a discovery of Miocene and Oligocene gas-bearing sandstones.

At the start of this year, Egypt also launched an international licensing round for exploration rights in the Nile Delta and the Mediterranean, comprising 12 onshore and offshore blocks.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10677778/main4005.jpg
Wil Crisp

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