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Petroleum Industry Developments in Egypt 
A comprehensive overview of Egypt's petroleum industry with
focus on recent developments in the local oil, natural gas,
and petrochemicals sectors.
(December 2005)
Members: LE250, Non-members: LE350, Int'l Price: $350
(Report Cover in PDF)
(Summary in PDF)
(Sample Pages in PDF)
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Summary
The energy sector as a whole has enormous potential for
Egypt and the government is encouraging foreign investment.
Natural gas is becoming an ever more important revenue generator
as it becomes the world's fastest growing primary energy source.
Egypt's proven natural gas reserves are estimated to be 67
tcf, double the levels they were in 1999. Recent discoveries
have propelled Egypt to the attention of global gas industries.
The sector is expected to show marked growth in the next few
years as decreasing technology costs allow for ease of exploration
and extraction and oil supplies are further depleted.
The government is trying to diversify the gas consumption
in Egypt in order to maximize discovery potential, reduce
reliance on oil supplies and minimize petroleum subsidies.
In 2003 Egypt joined the international export market of piped
gas with the inauguration of the Arab pipeline to Jordan which
will extend to Syria and Turkey. By 2007 natural gas exports
are forecast to account for 30% of all production. The major
expansion in the gas export sector is due to the development
of tankers which transport the gas in liquefied form (LNG),
decreasing transportation and project infrastructure costs,
thereby opening up developing markets. Egypt has recently
become the world's seventh largest exporter of liquefied natural
gas.
Petrochemicals are chemicals derived from fossil fuels, primarily
natural gas, with a wide range of commercial uses. The government
has recently launched a $10 billion long-term strategy, which
over the next 20 years will focus on maximizing the potential
of recent gas discoveries as a drive to minimize import dependence
and reduce the trade deficit.
Oil continues to be the world's most traded commodity. It
has retained its position of the last few decades to be the
world's primary energy source in terms of consumption. Egypt
is hoping for new discoveries to end the decline in output
and is in the process of opening up more fields for explorations.
New companies are entering the market, encouraged by the recent
progress to diminish the bureaucracy involved in the awards
of concessions and a noticeably improved business environment.
The Egyptian government has recently introduced a package
of economic reforms that make the energy sector more attractive
to both domestic and international firms. Over the past two
years the holding agencies have exhibited a more constructive
attitude in exercising regulatory powers and have opened up
more channels for debate under the instructions of the government.
Overall, the Egyptian government is moving away from the previous
market-oriented policies towards a more investment-oriented
economic policy.
Industry highlights
- There were 16 oil discoveries reported in 2004
- Apache Corporation is the largest U.S. investor in Egypt.
- Egypt has nine refineries of total output levels around 726,250 bpd.
- Proven natural gas reserves are estimated to be 67tcf as of May 2005 and probable reserves are believed to be 120tcf or more.
- Egypt is the 21st largest gas producer in the world and the sixth largest in the MENA region.
- Egypt now ranks eighth worldwide for the number of CNG-enabled vehicles.
- There are currently 95 retail outlets and 48 conversion centers for CNG throughout the country.
- Egypt has recently become the thirteenth nation to export gas in the LNG business and is the seventh largest LNG exporter.
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