[Premium] How to Make Egypt an Energy Hub: Minister
Egypt’s oil minister Tareq El Molla (pictured below) told the IP Week conference February 22 of the country's aspiration to become a regional energy hub for the eastern Mediterranean, and how it would achieve that role.
In August, the government approved a new gas law opening its natural gas sector to private investors. This includes the establishment of a new regulatory body to supervise the liberalisation of the Egyptian natural gas sector.
The minister emphasized Egypt’s ideal location, with the Suez canal connecting Asia and east Africa to Europe, facilitating the transportation of oil, products and LNG. In addition, Egypt is Africa’s biggest energy market, with extensive energy infrastructure and downstream industry. Through these Egypt has a real potential to become the region’s energy hub, he said.
The government is basing its strategy on three key pillars:
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Domestic level: Through the gas market liberalisation and the appointment of an independent regulator;
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Technical and commercial: A well established energy system with marine platforms, storage facilities, extensive transmission system and infrastructure, two gas liquefaction plants and strong possibilities for more hydrocarbon discoveries; and
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Alignment with EU energy policy: Egypt’s key ambition is to supply Europe with energy
Israeli and Cypriot gas finds, together with the giant Zohr field off Egypt and potential reservoirs off Lebanon, could create a gas hub right on Europe’s doorstep.
The recently announced major $15 bn gas deal between the Egyptian private company Dolphinus and Israel’s Delek and Noble Energy is a major step towards realizing Egypt’s hub aspiration.
Egypt is also in discussions with Cyprus, an EU member state, to build a subsea gas pipeline to bring gas from the Aphrodite gas field to Egypt for liquefaction and export. The minister sees this as part of a larger effort to position the eastern Mediterranean as a gas-exporting region to Europe.
The minister also said that an MOU has been signed between Egypt, Jordan and Iraq to bring oil and gas to Egypt, further supporting the country’s hub plans. Concluding, the minister confirmed that Egypt is ready to implement any further reforms that may be required to achieve the country’s energy hub vision.