The Egyptian Cabinet announced that it had approved five agreements for gas and crude oil exploration projects involving several international and national companies. The expected investment for these projects is around $200 million.
Commitment agreements approved
The Cabinet approved a commitment agreement between the Egyptian Natural Gas Holding Company (EGAS) and IEOC Production BV to search for and exploit gas and crude oil in the North Port Fouad offshore area in the Mediterranean. Another commitment agreement was approved between EGAS and IEOC Production BV to search for and exploit gas and crude oil in the South Nour offshore area in the Mediterranean Sea.
The Cabinet also approved a commitment agreement between EGAS and ZN BV LTD for the exploration and exploitation of gas and crude oil in the North Al Khatatbah onshore area in the Nile Delta. Additionally, an amendment was approved to the commitment agreement between the Egyptian General Petroleum Corporation (EGPC), Tharwa Petroleum Company, and the General Petroleum Company (GPC) to search for, develop, and exploit oil in the Horus Development Area in the Western Desert.
The Cabinet approved a commitment agreement between EGPC and HPS International Egypt Limited to search for, develop, and exploit oil in the South Dabaa Development Zone (SD-3) in the Western Desert.
Read more: Egypt sets sail for renewable future with $9 billion FDI for 8 GW wind projects
Renewable energy sector shines
Egypt’s renewable energy sector shines brightly amidst an otherwise bleak economic outlook for the country. Despite grappling with high inflation, foreign currency shortages, and a hefty import bill, Cairo has successfully attracted significant foreign investments, both institutional and bilateral, into its burgeoning clean energy industry. As new projects progress towards implementation, Egypt’s solar and wind energy capacity is poised to surpass 5 gigawatts by 2025.
Offshore energy sector and domestic challenges
Egypt’s offshore energy sector is fast becoming an East Mediterranean gas hub, but its gas output has declined, and it faces challenges in meeting growing domestic power demand. Moreover, this expansion would alleviate domestic consumption and enable profitable LNG exports, enhancing Egypt’s financial outlook.
Egypt leads Africa in renewable energy adoption
Egypt leads Africa in renewable energy adoption, and this trend is set to continue with ongoing construction projects. According to the International Renewable Energy Agency (IRENA), Egypt, Morocco, and South Africa possess the largest share of renewable energy capacity on the continent. Additionally, Egypt’s wind capacity alone reached an impressive 1.64 gigawatts by the end of 2022, surpassing the entire Middle East region. The Gulf of Suez, with its wind speeds exceeding 10 meters per second, has been instrumental in powering turbines and facilitating this achievement. In total, Egypt’s renewable energy capacity stood at 6.3 gigawatts by the close of 2022, with hydropower contributing 2.83 gigawatts, as per IRENA’s report.
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