The Egypt Energy Show was brimming with news, announcements, and ambitious targets: The three-day event is set to gather 35k energy industry professionals and hold over 80 conferences on energy transition and sustainable production by the time it wraps later today. But despite only running over three days, the conference has been packed with announcements from the public and private sector.

GAS PRODUCTION + EXPORTS

No LNG exports this summer: Egypt is likely to suspend exports of liquefied natural gas during the coming summer on the back of increased domestic demand as rising temperatures strain supplies, Oil Minister Tarek El Molla said in an interview with CNN Business Arabic. “It’s not unusual for us to suspend LNG exports, but we are trying to shorten the period of stopping exports as best as we can,” El Molla added.

Egypt only exported around 3-4 shipments of natural gas every month this winter, as the government works to find a balance between bringing in much-needed FX, while still meeting the needs of the local market, El Molla told Asharq Business in a separate interview. While the latter has been the priority, there is “a minimum number of exports that we are obligated to,” he said.

Natural gas production has fallen to 5.5 bn cubic feet (bcf/d) per day on the back of the natural decline of gas fields, the minister said. Natural gas production had stood at an average of 6.2 bcf/d in the previous year — and 6.7 bcf/d the fiscal year before that.

But, the tide may soon be turning for our natural gas production: “There are plans for a number of new projects expected to enter the production stage during the next fiscal year, which will contribute to increasing natural gas production,” El Molla told CNN Business Arabic.

And it’s gonna take a lot more FDI: The Oil Ministry aims to attract somewhere around USD 7.5 bn in foreign direct investments from foreign partners in the Egyptian oil sector during the next fiscal year, compared to the USD 6 bn in investments expected in the current fiscal year, El Molla said.

More gas exploration tenders: The ministry has extended the deadline for a current oil exploration tender from 25 February to 1 April and plans to launch a new gas exploration tender during the second half of 2024.

FINANCING + DEBTS + PRIVATIZATION-

El Molla says Egypt needs more support for its energy transition: African countries – Egypt included – need greater support from the global industry with regard to the energy transition and reducing emissions, El Molla said.

El Molla’s statement echoed the words of President Abdel Fattah El Sisi from a day earlier, when the president called for low-cost financing to drive Egypt’s green transition. “The developed countries in Europe, in America, and in other countries … when they make pledges, they can implement these pledges because of their organizational and economic ability … in African countries, such as Egypt, when you make these pledges, they’re difficult because they require financing, low-cost financing,” El Sisi said during an address on the first day of the conference.

IMF agreement will help settle gov’t debts owed to foreign companies: Egypt’s anticipated agreement with the International Monetary Fund will help settle debts that it currently owes to foreign oil firms, Bloomberg cited El Molla as saying in an interview. “This is something that we are addressing and that has a priority and will definitely be solved after signing with the IMF,” El Molla said.

It’s Midor’s turn for a stake sale: The oil minister confirmed unconfirmed reports from last year that the Middle East Oil Refining Company — known as Midor — will be the “next company from the petroleum sector within the [government’s] privatization program.”

IN OIL NEWS-

More oil investments from Dragon Oil: Emirates National Oil Company subsidiary Dragon Oil plans to invest some USD 500 mn in Egypt this year to drill new wells and maintain oil production levels — at 61k barrels per day (bpd) — the company’s managing director and CEO, Ali Al Jarwan, told Asharq Business. Dragon Oil wants to raise its production from the North Safa oil field in the Gulf of Suez to 8k bpd next year up from 6k bpd, he added.

Apache wants more blocks: Apache, the country’s largest oil producer, aims to securenew oil and gas concessions areas in 2024, vice president and general manager of the company’s Egypt operations, David Chi, told Asharq Business. Egypt is committed to paying its dues to the company over a 30-year period, he added.

Remember: Apache plans to invest USD 1.4 bn on exploration and production in Egypt thisyear as part of a wider plan to spend USD 3.5 bn here by 2027. CEO John Christmann in May said that the company wants to obtain new concessions in the Western Desert to drill more oil wells.

Energean is going nowhere, confirming on Tuesday its intention to continue investing in Egypt’s oil sector despite the company’s accumulated receivables, the company’s CEO Mathios Rigas told Asharq Business.

Your top infrastructure stories for the week:

  • El Nasr Civil Works and Uganda’s Dott Services are forming a JV, which will workwith the Ugandan Water and Environment Ministry to set up EUR 46-mn worth of water supply networks. (Statement, pdf)
  • IFC wants to fund Hayah Karima projects: The International Finance Corporation(IFC) has voiced its interest in funding private sector companies working to develop countryside villages under the Hayah Karima initiative.
  • We’re getting more gas from Israel: The Israeli Energy Ministry has greenlit an agreement that will see Israel increase its gas exports to Egypt by 4 bn cubic meters a year from Chevron’s offshore Tamar field starting July 2025.
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