Dr. Mostafa Madbouly, Prime Minister, met today; At the government headquarters in New Alamein, Engineer Karim Badawi, Minister of Petroleum and Mineral Resources, to follow up on a number of the ministry’s work files.
At the beginning of the meeting, Dr. Mostafa Madbouly stressed that the petroleum and natural gas sector is one of the basic pillars of supporting the national economy, as it represents a pivotal role in securing the state’s energy needs and enhancing comprehensive development efforts. He stressed the government’s continued provision of various forms of support to increase local production rates and attract more investments, as well as accelerating the pace of research and exploration work, which contributes to maximizing the benefit from Egypt’s natural wealth, within the framework of the state’s goals of achieving sustainable development.
During the meeting, the Minister of Petroleum and Mineral Resources reviewed the executive position of a number of strategic projects being implemented in the petroleum and natural gas sectors in partnership with major international companies, noting that these projects come within the framework of the state’s strategy to maximize the added value of natural resources, through the localization of new industries, reducing the import bill, and increasing exports, which contributes to supporting economic growth and enhancing the competitiveness of the Egyptian economy, as well as making the most of the components and capabilities possessed by the oil and gas sector.
In a related context, Engineer Karim Badawy referred to the announcement of the alliance of the Italian company Eni and the French Total Energies to take the final investment decision (FID) to develop the Cypriot “Kronos” gas field and connect it to the Egyptian infrastructure, as it represents a new strategic step that reflects the depth of cooperation between Egypt and Cyprus in the field of natural gas, and confirms the growing position of Egypt as a regional center for gas trade and circulation, and a main gateway for re-exporting Eastern Mediterranean gas to global markets.
The Minister of Petroleum explained that the “Kronos” project embodies an advanced model of regional integration in the energy sector, as the gas produced from the Cyprus field will be transported to Egypt to take advantage of the advanced infrastructure owned by the state, by processing the gas through existing facilities, then liquefying the gas at the natural gas liquefaction station in Damietta, in preparation for its re-export to European markets, in a way that achieves added value for all parties, and contributes to enhancing energy security at the regional and international levels.
Engineer Karim Badawy also stressed that Egypt’s choice to receive, process and liquefy Cypriot gas reflects its advanced capabilities and integrated infrastructure, and confirms its position as a reliable regional partner and the most ready to develop gas reserves in the region, which contributes to maximizing the benefit of national assets, increasing their operating rates, and achieving sustainable economic returns, as well as supporting efforts to enhance energy security and meet the needs of regional and global markets.
During the meeting, the Minister of Petroleum explained that Egypt’s production of crude oil had recorded its highest levels in two years, which reflects the success of the ministry’s strategy in stimulating investments and increasing local production. He explained that completing the payment of overdue dues to investment partners, in addition to regular payment of current dues, contributed to strengthening partners’ confidence, encouraging working companies to expand pumping new investments, and intensifying research, exploration, development and production activities, in a way that supports the state’s efforts to maximize the use of its natural resources, enhance energy security, meet the needs of the local market, and consolidate Egypt’s position. As a regional center for energy trading and trading.
The Minister of Petroleum and Mineral Resources also addressed the ministry’s efforts to secure the local market’s needs for natural gas during the peak consumption period witnessed in recent days, coinciding with the significant rise in temperatures, stressing the success of the natural gas system in meeting record loads and ensuring the stability of fuel supplies to various sectors, most notably the electricity sector.
In a related context, the Minister of Petroleum confirmed the Ministry’s continued readiness to secure the needs of the second half of the summer, in light of the operational plans and alternatives that have been developed to deal with various scenarios and variables, pointing to the continued implementation of programs to raise the efficiency of the natural gas system and enhance energy security, in a way that ensures that the needs of citizens and various economic sectors are met in a safe and sustainable manner.
During the meeting, Badawi also pointed out the results of the ministry’s efforts to expand research and exploration work, noting that a new natural gas discovery was achieved by drilling the “Wanda” deep exploratory well in the Western Desert region, at a depth of 15,000 feet, with a production rate of about 40 million cubic feet per day, which represents a new addition to the natural gas supply system, and confirms the continued success of efforts to intensify exploration and development work in promising concession areas, in a way that supports the state’s plans to increase local production and enhance energy security.
