Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Egypt gears up to meet energy needs: Minister  Join our daily free Newsletter

MENAFN - The Peninsula - 13/02/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - The Peninsula) Egypt will need to import an additional 1bn worth of petroleum products and secure significant natural gas supplies as it scrambles to meet energy needs for the summer, Oil Minister Sherif Ismail has told Reuters



One government after another has struggled to cope with energy crunches, and Ismail said this coming season would be no exception. Failure to find a solution could frustrate Egyptians, who rioted in the past over long lines at gas pumps just before the army toppled Islamist president Mohamed Mursi



Political turmoil since a popular uprising ousted autocrat Hosni Mubarak in 2011 has paralysed decision making. Disarray in the energy sector will take time to fix, even after a new government replaces the army-backed interim administration. "Of course there are needs," said Ismail, adding that efforts to import badly needed natural gas may not succeed.



"The intention is to (make available) liquefied natural gas (LNG) and (to get) LNG facilities in operation before the summer ...It is our prime concern and intention to solve this problem if not for this year by 100 percent then at least for the years yet to come."



Egypt in October tendered for a floating terminal needed to import LNG. An official said at the time that the government wanted the terminal in place by April, before temperatures rise and consumption spikes.



The tender has not yet been awarded, and experts say that time has run out for a terminal to be delivered and installed before the summer. Ismail said the alternatives to importing LNG include shifting to using more expensive fuel oil and encouraging Egyptians to conserve energy during peak hours.



These steps may not suffice. Analysts say about 75 percent of electricity production in Egypt is dependent on gas, not fuel oil



Saudi Arabia, Kuwait and the UAE extended an economic lifeline to Egypt after the army ousted Mursi after mass protests against his rule.



Egypt has said it has received 4bn in fuel products from Gulf nations since Mursi's ouster. Ismail said Egypt would require more imports for the summer. "The first estimate...is that we will need to import petroleum products of around 250m per month during the four summer months," Ismail said in an interview



The growing population of 85 million has kept energy demand steadily rising so that it now outstrips the production of oil and gas from fields in the Western Desert, Nile Delta and offshore



Compounding the problems, the government fell into heavy debt to foreign energy firms which Egypt needs to help it exploit gas reserves that could enable the country to end power cuts and bolster export income



Instead, surging demand has caused Egypt to divert high levels of gas produced by foreign companies such as BG Group and promised to them for export.



Ismail said that "the gap between production and consumption" is caused mainly by the fact that Egypt has not developed its available reserves



SUBSIDY BURDE



Egypt's energy troubles weigh heavily on the economy. Talk of cutting fuel subsidies costing 15 billion a year has produced limited results. Successive governments have feared that raising energy prices could trigger unrest in a country where street protests have helped remove two presidents in three years.



Ismail, an engineer who held senior posts at several state-run energy firms before his appointment as minister last July, says the interim government will take the first steps in a reform programme that would see subsidies cut by 25 to 30 percent in five to six years.



A smart card system for fuel purchases by drivers launched during Mursi's year in office should be operational within three months, he said.




 


The Peninsula




  MENA News Headlines
 Jul 29 2015 - Egypt says 'new Suez Canal' ready for businessAFP
(MENAFN - AFP) Egypt said on Wednesday that the "new Suez Canal" was ready for navigation for all kinds of ships, as authorities geared up to launch the shipping route officially next month. Dubbed ...

 Jul 29 2015 - Israel welcomes 200 French Jewish immigrantsThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Two-hundred French Jewish immigrants have arrived in Israel, according to a Tuesday statement issued by The Jewish Agency for Israel.The newcomers € half of ...

 Jul 29 2015 - Germany criticizes Israel's new settlement plansThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Germany has criticized Israel for approving the construction of more than a thousand settlements in occupied West Bank, terming the move a threat to the ...

 Jul 29 2015 - President Erdogan calls Jordanian KingThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) Turkish President Recep Tayyip Erdogan informed Jordanian King Abdullah II and Italian Prime Minister Matteo Renzi about Turkey's ongoing "anti-terrorist ...

 Jul 29 2015 - Egypt- Fascism Incorporated: Our faultDaily News Egypt
(MENAFN - Daily News Egypt) When the blood of the other becomes a fathomable reality, fascism is born. I remember well standing among thousands in front of the UN, on 30 June 2013, as we screamed ...

 Jul 29 2015 - Egypt- Media gag ordered for case involving judge demanding sexual favoursDaily News Egypt
(MENAFN - Daily News Egypt) A media gag was ordered by the General Prosecution on Tuesday in the case of a judge who is charged with demanding sexual bribes from a woman in a lawsuit he was ...

 Jul 29 2015 - Bomb explodes in Al-ArishDaily News Egypt
(MENAFN - Daily News Egypt) A bomb explosion took place on Tuesday morning in the North Sinai town of Al-Arish with no casualties reported, a North Sinai resident told Daily News Egypt.The explosion, ...

 Jul 29 2015 - Egypt- 19 die in wood factory blazeDaily News Egypt
(MENAFN - Daily News Egypt) A fire in a wood factory in Qaliubiya governorate left 19 people dead and 22 injured on Tuesday.The fire occurred in an industrial district of Obour City, northeast Cairo. ...

 Jul 29 2015 - HRW accuses Saudi-led coalition of war crime in YemenDaily News Egypt
(MENAFN - Daily News Egypt) Human Rights Watch (HRW) reported Monday that its investigations into several air strikes by the Saudi-led coalition in Yemen on 24 July found no apparent threat at or ...

 Jul 29 2015 - Detention renewed for Esraa El-TaweelDaily News Egypt
(MENAFN - Daily News Egypt) The detention of amateur photojournalist Esraa El-Taweel, accused of spreading false news and belonging to the outlawed Muslim Brotherhood, was renewed on Monday, after ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help