Egypt’s Minister of Petroleum and Mineral Resources, Tarek El Molla, mentioned that Egypt will reach self-sufficiency in oil merchandise by 2023, benefiting from its new improvement initiatives within the oil sector. Molla’s remarks had been made on the sidelines of the local weather summit in Riyadh.
He added that Egypt will improve its present refineries and construct seven new ones as a part of a $7 billion undertaking. The new amenities will be capable of produce 6.2 million tons of oil merchandise comparable to gasoline and diesel per yr.
“We are not a large oil producer, but we are doing well with refined products. Instead of importing refined products, we prefer importing crude oil and refining it locally,” he mentioned.
Egypt is in search of to develop into a significant hub for exporting gasoline to Europe, the place demand is rising as governments shift from extra polluting fossil fuels like coal and oil to cleaner vitality sources like gasoline.
Molla famous that with liquefied pure gasoline exports rising once more, Egypt plans to barter extra long-term gross sales offers with prospects and to develop into much less reliant on the spot market. He added that his nation at present sells about 60% of LNG by long-term contracts and 40% primarily based on quick supply.
The ministry indicated that ENI recognized oil and gasoline deposits following the drilling of the Jasmine W-1X and MWD-21 wells. The Jasmine W-1X is positioned 5 kilometers west of Jasmine discipline. Tests pointed to a manufacturing fee of two,000 barrels of sunshine oil per day and seven million cubic toes of related gasoline per day.
The ministry’s assertion revealed that the MWD-21 nicely is already producing at a steady fee of two,500 barrels of crude oil per day.
ENI made one other discovery within the South West Meleiha exploration concession by the SWM-4X nicely, positioned 35 km south from the Meleiha discipline, the ministry mentioned, with a manufacturing fee of about 1,500 barrels of oil equal per day.
The whole proved reserves related to these discoveries are 50 million barrels of oil, and the brand new discoveries add greater than 6,000 barrels of equal oil per day, the ministry mentioned.
Former Petroleum Minister Osama Kamal advised Al-Monitor by telephone that reaching self-sufficiency in oil merchandise depends upon a number of components, primarily decreasing petroleum consumption. Kamal famous that Egypt imports approximately 35% to 40% of its oil derivatives, and this proportion is more likely to improve until cleaner alternate options are used.
Kamal mentioned that the proposed alternate options embrace switching to different kinds of gas and different energy technology methods. Power crops devour 35-37 million tons of gas yearly, out of a complete 80 million tons in Egypt, he mentioned, and “Therefore, it is necessary to increase power generation using solar energy.”
Using extra gasoline within the transport sector and households, Kamal mentioned, will scale back strain on oil derivatives, scale back the burden on the state price range, assist the setting and scale back air pollution charges. Implementing this technique, whereas dashing the present refinery initiatives, will qualify Egypt to do with out imports, he mentioned.
On the opposite hand, Mohamed Saad Eldin, the pinnacle of the Gas Investors Association and the pinnacle of the Energy Committee on the Federation of Egyptian Industries, believes that Egypt at present has a surplus of pure gasoline manufacturing.
He defined that rising using gasoline in all sectors as a lot as attainable, and rising the manufacturing of oil derivatives by new refining initiatives, will assist obtain self-sufficiency in 2022-2023. This two-pronged approach may also profit the setting.
Even although using gasoline in all sectors has elevated, Eldin mentioned, some sectors will proceed to devour oil derivatives, so it’s essential to extend the manufacturing of gasoline, diesel, and butane gasoline regionally, and that is what the ministry is at present doing in its race to finish the implementation of recent refining initiatives.