sharing the energy of knowledge

Egypt

Table of Contents
  1. 1. Introduction
  2. 2. Key statistics
  3. 3. Gas demand
    1. 3.1. Total Primary Energy Consumption by Fuel
    2. 3.2. Gas Demand by Sector
  4. 4. Gas supply
    1. 4.1. Gas reserves
    2. 4.2. Exploration & Production
    3. 4.3. Imports & Exports
  5. 5. Gas infrastructure
    1. 5.1. Gas grid
    2. 5.2. LNG
    3. 5.3. Storage
  6. 6. Gas market regulation
    1. 6.1. Upstream
    2. 6.2. Network
    3. 6.3. Downstream

1. Introduction

Egypt is a transcontinental country, most of it being situated in North Africa with the Sinai Peninsula forming a land bridge to South-West Asia. Egypt is bordered to the north by the Mediterranean Sea; to the east by the Red Sea; to the south by Sudan; to the west by Libya and to the northeast by the Gaza Strip and Israel. Egypt has a total surface of 1,002,450 square kilometers (387,048 sq mi) and is inhabited by approximately 82 million people (2011 census) making it one of the most densely populated countries in Africa and the sixteenth most densely populated country in the world. It has a yearly GDP (PPP) of about USD 519 billion (2011 estimate), which is $6,540 per capita, and its total nominal GDP is USD 235.72 billion ($2,970 per capita). [1]

edit top


2. Key statistics

Basic gas facts - Egypt
Basic Gas Facts 2006 2007 2008 2009 2010e
Gas reserves (bcm) .. .. .. 2185 2159
Gas production (mcm) 54588 56215 60212 63040 61653
Gas consumption (mcm) 37958 39615 42514 43877 45644
Gas imports (mcm) .. .. .. .. ..
-imports pipeline (mcm) .. .. .. .. ..
-imports LNG (mcm) .. .. .. .. ..
import dependency (%)*          
Gas exports (mcm) 16630 16600 17698 19163 15871
Natural gas supply per capita (toe) .. .. .. .. ..
Technically recoverable shale gas resources (bcm) .. .. .. .. ..
Coal Bed Methane reserves (bcm)** .. .. .. .. ..
c = confidential; - = nill; ..= not available
* Imports dependency of natural gas = (imports - exports) / consumption
**Proven & Probable (2P); U.S. Environmental Protection Agency, Coalbed Methane Outreach Program
Sources: Natural Gas Information © OECD/IEA, 2011

[1]

Basic energy facts - Egypt
Basic Energy Facts 2006 2007 2008 2009 2010e
Total Primary Energy Consumption (mtoe) 65.79 69.95 74.11 76.45 81.05
CO2 Emissions, energy-related (Mt) 152.7 159.55 183.06 189.53 ..
CO2 intensity, energy-related (tCO2/toe) .. .. .. .. ..
Energy consumption per capita (toe/cap) 0.87 0.91 1.03 .. ..
CO2 per capita, energy-related (tCO2/cap) 2.06 2.11 2.37 2.40 ..
c = confidential; - = nill; ..= not available
Sources: BP Statistical Review of World Energy 2011 & EIA International Energy Statistics

[2], [3]

edit top


3. Gas demand

edit top


3.1. Total Primary Energy Consumption by Fuel

In 2010, Egypt’s Total Primary Energy Consumption amounted to 81 mtoe, an approximate 6% increase over 2009 when the total was 76.5 mtoe. Oil accounted for 36.3 mtoe, while coal and gas accounted for 0.7 mtoe and 40.6 mtoe respectively. Hydro and Renewables accounted for 3.2 mtoe and 0.3 mtoe respectively.

*other: nuclear, hydro, geothermal, solar, biofuels & waste, electricity and heat

[1]

*other: nuclear, hydro, geothermal, solar, biofuels & waste, electricity and heat

[1]

edit top


3.2. Gas Demand by Sector

In 2009, 24,519 mcm of natural gas was used for generating power. In this regard, natural gas accounts for over 70% of the total mix used for electricity generation. With the development of compressed natural gas (CNG) infrastructure and vehicles, the share of natural gas in the transportation sector is expected to grow.

edit top


4. Gas supply

edit top


4.1. Gas reserves

Egypt holds 2,159 bcm of conventional natural gas reserves. According to Cedigaz, Egypt’s natural gas reserves represent approximately 1.14% of the world’s total reserves. The reserves-to-production (R/P) ratio* for Egypt was 36 years at the end of 2010, which is significantly higher than, for example, the EU’s average R/P ratio of 14 years.[1]  

*Reserves-to-production (R/P) ratio – If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time that those remaining reserves would last if production were to continue at that rate.  

edit top


4.2. Exploration & Production

In 2010, Egypt produced 61,653 mcm of natural gas, which is 1,387 mcm less than in the previous year, but almost 13% more than in 2006 when it produced 54,588 mcm of natural gas. [1] Due to major recent discoveries, natural gas is likely to be the primary growth engine of Egypt’s energy sector for the foreseeable future. Production of natural gas quadrupled between 1998 and 2009, and so most industry analysts place Egypt’s natural gas production on an upward trend in the short- and medium-term despite the existing limitations to the sector’s growth. Over 80% of Egypt’s natural gas reserves and 70% of production is in the Mediterranean and Nile Delta but exploration and production continue in all major hydrocarbon rich areas including the Western Desert. [2]

edit top


4.3. Imports & Exports

Due to its high indigenous production, there is no need for Egypt to import gas. Egypt began exporting natural gas in the mid-2000s with the completion of the Arab Gas Pipeline (AGP) in 2004 (running to Lebanon, Jordan, and Syria) and the startup of the first three LNG trains at Damietta in 2005. The Arish-Ashkelon pipeline addition, branching away from the AGP in the Sinai Peninsula and connecting to Ashkelon in Israel, started up in 2008. In 2010, Egypt exported around 15,000 mcm of natural gas, representing about 25% of its domestic gas production. In that same year, total exports decreased with about 17% as compared to 2009. For LNG there was even a 30.2% decrease in 2010 over 2009 according to the GIIGNL, while pipeline exports increased slightly. The decrease of LNG exports is mainly due to growth in the country’s domestic gas needs. Exports to OECD countries amounted to 10,439 mcm of which 8,339 mcm through LNG. [1], [2]

Exports by country - Egypt
By country of destination (in mcm) 2006 2007 2008 2009 2010 %Total Exports 2010
Belgium ..   84 88 172 1.12%
Canada ..     84    
Chile ..       374 2.44%
France .. 1067 938 1427 665 4.33%
Greece ..     253 46 0.30%
Israel ..   320 1510 2100 13.68%
Japan .. 2278 1777   763 4.97%
Korea .. 1451 2927 312 959 6.25%
Mexico .. 1108 1177 454 83 0.54%
Spain .. 4196 4632 4508 2825 18.41%
Turkey ..       270 1.76%
United Kingdom .. 162   528 115 0.75%
United States .. 3245 1553 4543 2067 13.47%
Argentina ..   100 160    
Brazil ..       90 0.59%
Jordan .. 2744 3149 3579 3165 20.62%
Kuwait ..       450 2.93%
Lebanon ..     50 255 1.66%
Syria ..   140 910 690 4.5%
China ..   250 82    
Chinese Taipei .. 981   73 172 1.12%
India .. 91 240 330 86 0.56%
Total* 16630 17323 17287 18891 15347 100%
%Total Production 30.46% 30.82% 28.71% 29.97% 24.89%  
c = confidential; - = nill; ..= not available, e = estimated
*These totals differ from the totals in the table 'Basic Gas Facts' as is the case in the original source
Source: Natural Gas Information © OECD/IEA, 2011

[1]

Exports by transport type - Egypt
By transport type (in mcm) 2006 2007 2008 2009 2010e %Total 2010
Pipeline exports .. 3064 3289 6049 6210 40.46%
LNG exports 14328 14579 13678 12842 9137 59.54%
Total 14328 17643 16967 18891 15347  
%Total Production 26.25% 31.38% 28.18% 29.97% 24.89%  
c = confidential; - = nill; ..= not available
Source: Natural Gas Information © OECD/IEA, 2011

[1]  

edit top


5. Gas infrastructure

edit top


5.1. Gas grid

Egypt currently has a pipeline network for exports to Eastern Mediterranean countries in addition to LNG exports. However, increasing domestic demand for natural gas has led the government to stall natural gas export expansion plans. The government has been actively working to attract foreign investments in the sector to increase exploration, production and downstream activities. With the ongoing expansion of the Arab Gas Pipeline, and LNG facilities, Egypt will continue to be an important supplier of natural gas to Europe and Mediterranean region. The government is also encouraging households, business and the industrial sector to consider natural gas as a substitute for petroleum and coal. In January 2008, the World Bank approved loans for the Natural Gas Connections Project, which serves to switch consumption of liquefied petroleum gas (LPG) to natural gas through investment in new connection and to further expand natural gas use in densely populated, low income areas. [1]  

edit top


5.2. LNG

At the end of 2011 there were two operational LNG terminals in Egypt with a total number of 3 liquefaction trains, a cumulated nominal liquefaction capacity of 12.2 Mt per year (or 16.6 bcm/year) and a storage capacity of 580,000 cubic meters.

LNG - Egypt
Site Storage   Liquefaction   Owner Operator Buyer Start-up Source Status
  #Tanks Cap.* #Trains Cap.**            
Damietta 2 300 1 6.8 SEGAS SEGAS SERVICES Gas Natural Fenosa, EGAS, (BP, BG & Petronas) 2005 .. E
Idku 2 280 2 9.8 Egyptian LNG (EGPC, EGAS, BG, GDF SUEZ, Petronas) Egyptian LNG (EGPC, EGAS, BG, GDF SUEZ, Petronas) GDF SUEZ 2005 .. E
c = confidential; - = nill; ..= not available
E = existing; U = under construction; P = proposed
* capacity in m3 x1,000 in LNG
**nominal capacity in bcm/year of gas
Source: GIIGNL 2010 & Natural Gas Information © OECD/IEA, 2011

edit top


5.3. Storage

No complete and/or consistent data is yet available on this statistic. Please help us and the gas community in completing these statistics and suggest a reference!

edit top


6. Gas market regulation

edit top


6.1. Upstream

The Egyptian General Petroleum Corporation (EGPC) is the state entity charged with managing upstream activities including infrastructure, licensing and production (for both oil and gas). The promotion of the gas sector along with the development of strategy is managed by the Egyptian Natural Gas Holding Company (EGAS). Both EGPC and EGAS work with private companies in joint venture partnerships. The Egyptian government has a policy to allocate one third of proven natural gas reserves for the domestic market, one third for future generations, and one third for exports. Given increasing domestic demand, combined with pressures in recent years against LNG and gas export contracts (particularly with Israel*), the oil minister declared in mid-2008 that no new gas export contracts would be made. These policies delayed plans to expand the export infrastructure and have also deterred some investment in the more expensive offshore areas. To promote exploration in the more expensive deepwater offshore, the Egyptian government revised pricing policies by agreeing to pay more for natural gas produces in these areas, assuring continued international interest in developing these potential resources.[1]

*In the first half year of 2012 it has been in the news that Egypt terminated a long term natural gas deal with Israel, and later tried to resell the gas to Israel at a new price. This even led to a remark of the Israeli government that it overshadowed the peace agreement between the two countries. [2]  

edit top


6.2. Network

No complete and/or consistent data is yet available on this statistic. Please help us and the gas community in completing these statistics and suggest a reference!

edit top


6.3. Downstream

No complete and/or consistent data is yet available on this statistic. Please help us and the gas community in completing these statistics and suggest a reference!

edit top




Comments

About EDI
Executive Education
Energy Knowledge
Events
Contact