Petroleum Minister displays achievements in youth conference

CAIRO – 25 July 2017: The state has been working on turning Egypt into a regional centre for energy trade and circulation making benefit of its distinguished geographical location, Minister of Petroleum Tarek El Mola said in National Youth Conference on Monday in Alexandria.

That is why the ministry has been focusing on infrastructure development such as in Sumed line extending from Ain Sokhna till Alexandria, warehouses, maritime ports, and refineries to be finished by 2030.

Mola announced that 33 percent of households with natural gas had the service introduced throughout the last three years, and that the shortage in butane gas cylinders has been terminated.

The minister declared that throughout the same period the ministry reduced its debts to foreign oil and gas companies has been reduced from $6.3 billion to $2.3 billion, and signed 76 agreements with petroleum companies.

The most well known among these is one signed with Eni which has led to the discovery of the largest natural gas field in the Mediterranean in 2015.

The Petroleum Ministry, represented by South Valley Egyptian Petroleum Holding Company (Ganope), signed with American corporation for drilling technologies Schlumberger and British company TGS to provide the government with geo-science data for exploring and producing oil and gas, with $750 million contracts to start collecting the geo-science data in Egyptian waters on Thursday.

The minister revealed that there have been negotiations with Iraq and Jordan to import raw natural gas from Iraq through Jordan. He added that the experimental operation of Sumed harbor in Ain Sokhna to receive all types of ships.

Mola said that after the partial removal of energy subsidies, the state still covers 35 percent of fuel cost, clarifying that energy prices would not be at the same level of global prices.

The minister said that demand on octane 95 quadrupled by increasing consumer prices of fuel on July 29 as it became close in price (LE 6.6/liter) to octane 92 (LE 5/liter) in addition to its efficiency and high quality suitable for new cars. The price of octane 95 is the market price as it is no longer subsidized.