Energy – Daily News Egypt https://wwww.dailynewssegypt.com Egypt’s Only Daily Independent Newspaper In English Wed, 29 Jan 2020 15:09:40 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Egypt, Exxon Mobil sign two Mediterranean exploration agreements https://wwww.dailynewssegypt.com/2020/01/29/egypt-exxon-mobil-sign-two-mediterranean-exploration-agreements/ Wed, 29 Jan 2020 14:21:59 +0000 https://wwww.dailynewssegypt.com/?p=720490 Company to start exploration in two blocks with $332m in investments

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Egypt’s Minister of Petroleum Tarek El-Molla has signed two oil and gas exploration agreements in the Mediterranean with Exxon Mobil, the ministry announced on Tuesday.

The press statement indicates that the new agreements set a minimum investment of $332m.

Accordingly, Exxon Mobil will start exploration in the North East Amriya block, with a minimum investment of $220m, and the North Marakia block, with a minimum investment of $112m.

El-Molla stressed that the return of Exxon Mobil, one of the largest international companies operating in the oil and gas industry, to work in exploration in Egypt after their long absence, shows the successes achieved by the oil sector during the past period.

Egypt achieved several gas discoveries in the last period, the most prominent of which was the mammoth Zohr gas field, bringing the total production capacity to about 6.5bn feet of gas per day.

The country aims to turn into a regional gas hub, through exploiting the country’s LNG plants in Idku and Damietta, through importing gas from Israel and Cyprus and re-exporting them to other markets.

El-Molla explained that the Exxon Mobil agreements bring the total number of deals with investors to 82 since 2014, with a total minimum investment of about $16bn for the drilling of 340 wells.

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EEHC pays EGP 27.3bn to EGAS for 6 months’ worth of fuel https://wwww.dailynewssegypt.com/2020/01/28/eehc-pays-egp-27-3bn-to-egas-for-6-months-worth-of-fuel/ Tue, 28 Jan 2020 06:20:39 +0000 https://wwww.dailynewssegypt.com/?p=720366 EGAS dues exceeded EGP 165bn end of 2019

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The Egyptian Electricity Holding Company (EEHC) has paid EGP 27.3bn in dues to the Egyptian Natural Gas Holding Company (EGAS) in exchange for fuel withdrawals for production plants from July 2019 to January 2020.

Sources at the EEHC told Daily News Egypt that the total late receivables with the Ministry of Petroleum until last December exceeded EGP 165bn.

The Ministry of Finance bears part of the debt owed on the electricity sector for the benefit of some creditors, such as the National Investment Bank, and the Ministry of Petroleum and Mineral Resources.

The Finance Ministry is also obligated to bear the burden of the total electricity bill due on the state budget apparatus, which is approved on a quarterly basis by the Central Accountability Organisation, followed by a cash payment by the Ministry of Finance, while the unpaid portion of the electricity bill is debited to the Ministry of Finance in favour of The Ministry of Electricity.

Egypt produces about 6.8bn scf/day, and about 300m feet per day are used inside the fields for the extraction equipment, with the rest of the production being directed to the local market, and power plants account for 61% of the total amount of gas directed to the local market.

The sources pointed out that the total arrears of the EEHC with government and private agencies until the end of November of last year amounted to EGP 57bn, including EGP 32.7bn in arrears on government agencies, and EGP 10.8bn on water companies.

Arrears also include EGP 7bn on the business sector, and the total arrears in the public sector are about EGP 3.3bn, while arrears amounting to EGP 3.5bn are with other parties.

The EEHC had entered into an agreement with a number of business sector companies to schedule the due arrears, and the agreement included the payment of a portion of the amounts due and scheduling the remainder over several years with a commitment to pay the monthly consumption bill.

The sources emphasised that the EEHC raises the efficiency of operation and reduces fuel consumption rates, which saves a lot of money to the state, explaining that using 191 grams of fuel oil per kilowatt hour saves EGP 288m annually.

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Empower negotiates with Saudi firm over $28m waste-to-energy plant https://wwww.dailynewssegypt.com/2020/01/27/empower-negotiates-with-saudi-firm-over-28m-waste-to-energy-plant/ Mon, 27 Jan 2020 13:16:25 +0000 https://wwww.dailynewssegypt.com/?p=720255 Tariff set at 12 cents per kW/h, 70% of costs to be financed by Saudi banks

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Empower, a biogas and waste management company, negotiates with a Saudi company to implement a waste-to-energy facility (WtE) with a capacity of 4MW and $28m investments.

Chairperson of Empower Hatem El-Gamal told Daily News Egypt that the negotiations are currently in an advanced stage. “Both the plant and the produced electricity will be implemented for a company located in southern Saudi Arabia, and the agreement is expected to be concluded within weeks,” he said without revealing the Saudi company’s name.

El-Gamal added that Saudi banks will finance 70% of the project’s cost, and the remainder will be shared equally between Empower and the Saudi company.

He explained that the proposed tariff for the produced electricity is set at 12 cents per kilowatt/hour (kW/h), which is a good value compared to the price of electricity in Saudi Arabia.

He stressed that his company has three main criteria when implementing an IPP project, which are: the ability to sell electricity directly to customers, reasonable tariff, and the location of the project, as it should be within a livestock farm to secure the plant’s needs of waste.

Empower decided to reorient its EGP 2.4bn investment plan in Egypt due to the low price of kilowatt-hours sold from these projects.

El-Gamal stressed that the company backed out of the contract with North Delta Company for Electricity Production, which required the establishment of five stations to produce electricity from sewage with a capacity of 5MW and investments of EGP 470m because the tariff adopted by the government was about 103 cents per kW/h.

He added that the company’s plan is to implement the project within seven years, including the construction of 18 stations that produce electricity from sewage. However, they now redirected investments to construct stations to generate electricity from solid waste in municipalities, with a tariff of EGP 1.4 per kW/h.

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Egypt’s gas consumption to surge 375m scf/day in FY 2020/21 https://wwww.dailynewssegypt.com/2020/01/25/egypts-gas-consumption-to-surge-375m-scf-day-in-fy-2020-21/ Sat, 25 Jan 2020 19:27:51 +0000 https://wwww.dailynewssegypt.com/?p=720172 Power plants account for 78% of additional gas consumption: source

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The Ministry of Petroleum and Mineral Resources estimated the increase in domestic natural gas consumption in the next fiscal year (FY) 2020/21 at about 375m cubic feet of gas per day (scf/day).

A source in the petroleum sector told Daily News Egypt that the average domestic market consumption of natural gas in FY 2020/2021 was estimated at 6.979bn scf/day, compared to 6.61bn scf/day in FY 2019/20.

He explained that power plants account for 78% of the increase in gas consumption.

Power stations normally receive 60% of total local gas consumption, while industry accounts for 30%, cars, and household 10%. The surplus of domestic production is directed to export through the liquefaction factories.

The source added that the rate of natural gas consumption in the local market is growing annually, according to the urban and industrial development plan, and with the increase in the number of cars that run on natural gas.

The source stressed that the market’s growing gas needs would be met through local production, as Egypt’s surplus of production exceeded 1bn scf that is mainly exported to Jordan.

The Ministry of Petroleum’s plan to transform Egypt into a regional energy hub aims to expand the export of gas for the benefit of Egypt or others to achieve a return from the exploitation of the national network and liquefaction stations. It would also advance the Egyptian industry and expand the petrochemical industries that create value added products.

The petroleum sector witnessed several big discoveries in the last period that were linked to production successively, bringing the total production to about 2.7bn scf/day currently, compared to 7bn scf/day last March.

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Egypt’s Electricity Minister to visit DR Congo over Inga Dam project https://wwww.dailynewssegypt.com/2020/01/25/egypts-electricity-minister-to-visit-dr-congo-over-inga-dam-project/ Sat, 25 Jan 2020 17:37:21 +0000 https://wwww.dailynewssegypt.com/?p=720140 Egyptian companies announce their readiness to take part in project, including Orascom, El-Sewedy

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A high-ranking Egyptian delegation, headed by Minister of Electricity Mohamed Shaker, will visit the Democratic Republic of Congo on Sunday to discuss several joint projects in the field of renewable energy.

Daily News Egypt leaned that the delegation will discuss cooperation in the fields of production, transmission, and distribution of electricity with DR Congo, in addition to the possibility of Egypt participating in the implementation of the Inga Dam project. These topics were previously discussed during the Congolese Prime Minister and Minister of Energy’s visit to Egypt in 2016.

The Egyptian delegation includes Hassan Allam, El-Sewedy, TAQA Arabia, Orascom Construction, and Arab Contractors.

On the other hand, the Arab Organization for Industrialization (AOI) agreed earlier to implement a solar station in DR Congo, with plans to start construction this year.

It is worth noting that, through the Egyptian Initiative for the Development of the Nile Basin Countries, a protocol of cooperation was signed between Egypt and DR Congo that includes the Egyptian government establishing a 4MW solar plant there.

The Egyptian delegation would be an opportunity to enhance the country’s cooperation with African countries in the interest of all parties and benefit from the huge hydroelectric potentials in the continent.

Shaker stressed the support of the Egyptian government to DR Congo in the energy field, and that all the capabilities of the Egyptian electricity sector would be available for DR Congo.

He added that Egypt always seeks to cooperate with Arab and African countries, exchange experiences and participate in preparing feasibility studies, provide technical support, and involve the private sector in investment projects.

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Electricity Ministry seeks more foreign contributions in energy projects https://wwww.dailynewssegypt.com/2020/01/25/electricity-ministry-seeks-more-foreign-contributions-in-energy-projects/ Sat, 25 Jan 2020 07:00:59 +0000 https://wwww.dailynewssegypt.com/?p=720076 Interconnection projects with Sudan, Saudi Arabia, Cyprus, and Greece to be concluded this year

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The Ministry of Electricity is formulating new incentives to attract foreign and domestic private sector investments into local energy projects, as well as hashing out new regulations to facilitate the establishment of renewable energy stations and direct sale of electricity to households or factories under the independent power producer (IPP) system.

Minister of Electricity and Renewable Energy Mohamed Shaker said in an interview with Daily News Egypt that the coming period would witness greater participation from the private sector in energy production and distribution projects.

The ministry would issue complementary measures and laws to encourage the participation of the private sector in energy projects, similar to the feed-in tariff programme.

This year will see the operation of the electrical interconnection projects with Sudan, Saudi Arabia, Cyprus, and Greece, Shaker revealed, adding that the Egypt-Sudan interconnection project has been completed, and operation will start soon. Meanwhile, the interconnection with Saudi Arabia will kickstart in the second half of the year, with the electrical linkage with Cyprus and Greece will follow suite.

Interconnection projects strengthen security and political stability between countries as they create an atmosphere of cooperation and dialogue, and provide new job opportunities in construction and operation phases.

Egypt turned to electrical interconnection projects because it plays an important role in enhancing energy security and expansion in renewable energy in the medium and long terms.

A study is currently underway to upgrade the electrical interconnection capabilities with Levantine and North African countries, saying “Egypt will be an energy hub between Africa and Europe.”

Achieving energy integration across Arab countries requires removing obstacles and challenges that prevent the incorporation of the electricity markets. This means establishing a joint electricity market while separating the electricity transfer operators from the other operators in accordance with the policies of each country to ensure fair competition and transparency.

Shaker added that the Electricity Ministry adopted several measures, initiatives, and reform policies to secure and sustain energy supply, improve energy efficiency, attract the private sector to invest in traditional and renewable energy, build smart networks, and enhance transparency and governance.

The Electricity Ministry plans to switch into smart networks which will represent a quantum leap in the future of electricity transmission and distribution. It depends heavily on the exploitation of renewable energy resources, achieving the optimal use of electricity, and reducing the cost of its production. It also aims to turn consumers into partners in the management of the electrical system and gives them many options for purchasing electricity from different providers.

The ministry has a plan to establish 47 control centres in the distribution networks that cover the country until 2025. There is also a pilot project to install 250,000 smart metres within the scope of six distribution companies.

The ministry is currently studying the selling tariff of electricity to electric cars, as well as establishing charging units in coordination with the ministries of military production, industry, and public sector enterprises.

Shaker stressed that the Dabaa nuclear plant project will play a fundamental role in diversifying the energy resources in Egypt and enhancing its regional and international position, and places Egypt on an advanced technological breakthrough.

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Grid parity remains main issue facing MENA renewable energy projects: MESIA https://wwww.dailynewssegypt.com/2020/01/22/grid-parity-remains-main-issue-facing-mena-renewable-energy-projects-mesia/ Wed, 22 Jan 2020 19:57:57 +0000 https://wwww.dailynewssegypt.com/?p=719897 Most of Egypt’s PV solar projects curbed by intermittency, further development will depend on storage capacity increases

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The Middle East Solar Industry Association (MESIA) issued their Solar Outlook Report 2020, as the Middle East and North Africa (MENA) countries move towards achieving their respective renewable energy targets, steadily commissioning large projects and launching additional phases of their renewable energy and solar programmes especially Morocco, Egypt, and the UAE.

Solar Outlook Report 2020 highlighted the fact that the main components of Benban Park have been completed with 1.4GW commissioned and a first contract for 200MW in Kom Ombo allocated, while in UAE Noor Energy Solar Park, entered commercial operation in mid-2019 with 1.17GW, also a 900MW PV IPP project in the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai was awarded at a world record low bid of $0.0169 per kWh.

The report indicates that the total corporate funding in the global solar sector saw an 11% increase year-on-year at $109.4bn in the first half of 2019. More than $2.6trn has been invested in renewable energy over the past decade.

Global solar power capacity increased by more than 25 times in this decade, from 25 GW at the beginning of 2010 to 617.9 GW anticipated by the end of 2019. Overall investment in the MENA energy sector could reach $1trn between 2019 and 2023, with the power sector accounting for the largest share of the spending at 36%.

MENA challenges, opportunities

According to MESIA, investment in commercial-scale solar development in the MENA region faces several challenges but also opportunities.

The report cites grid parity as one of the main issues facing renewable energy projects in the region, followed by policy and legislation – most markets require government support to encourage the

adoption of solar energy. In addition to setting high renewable energy targets, stable tariff regimes, clear permitting rules, net metring, wheeling and grid connection conditions are required.

Another challenge is the shortage of required skills to meet the demand. Thus, the report indicates industry can play a major role in supporting the development of training and fostering local talent which will play a key role to increase the solar industry throughout the region.

Finally getting the needed finance remains a hurdle according to the report, however, MESIA believes that as the region’s renewable energy market matures, lenders use progressive financing mechanisms, such as soft short-term loans which can encourage developers to refinance after a set time, to lower lending costs.

New trends, technologies in 2019/21

One of the top trends cited in the report is the reduction in solar prices, citing Dubai’s 900 MW solar tender hit another low-price record with $0.0169 per kWh.

Consequently, the continuous drop in costs for solar panels is one of the factors that have contributed to reducing capital expenditure (CAPEX) of utility-scale projects. It is important to note that the reference prices for solar electricity usually refer to utility-scale ground-mounted solar; however, the decrease of panel prices has also contributed to make rooftop solar a more viable option for businesses.

Another notable trend is energy storage, MESIA indicates that several MENA countries are looking to energy storage. The niche market of storage solutions evolved, and its competitiveness increased. “So far, molten salt is used both as a heat transfer fluid (HTF) as well as a thermal energy storage medium. Similarly, lithium batteries’ efficiency properties are still the best compared to many substitutes entering the market. Ongoing R&D is looking at reducing levelized cost of electricity (LCOE) through the use of a thermal storage medium that is capable of a wider temperature range than molten salts – the current state of the art storage fluid used in tower CSP. Hydrogen as a storage solution is also an up and coming technology. It should be noted that first compressed air energy storage projects are also being launched,” the report stated.

Furthermore, MENA started to adopt high output modules, called bi-facial, are offering high efficacy modules in the market, according to the report. These bifacial modules use both its front and rear side of the solar panel, to increase generation. The report indicates that such methods can increase power generation gains by more than 25%, bifacial technology is expected to increase in the region and has already been implemented in Egypt’s solar park in Benban.

Another cell technology mentioned in the report is the half-cut cell, which offers lower resistance losses and improved shading performance. This technology also has the potential to improve reliability as the operating current of each cell is reduced by 50% and mechanical failures risks decrease due to the smaller size of each cell. Also, a new type of cells called perovskite solar cells can absorb light more efficiently than silicon cells, allowing them to be extremely thin, yet, their current challenges include toxicity, stability and lifespan issues due to sensitivity to air and moisture.

Moving from the cell technologies, the report highlights new ways of utilising solar power, such as the floating solar, where floating PV arrays are mounted on platforms in the water instead of rooftops or land-based areas, to allow the conservation of land for other purposes than power generation.

According to the report, floating solar brings several advantages, allowing self-buoyant bodies for PV panels to be directly affixed at tilted angles, reducing CAPEX due to limited site preparation and construction work hydro plants, water reservoirs or lakes and a few on the sea, reducing OPEX as a result of minimal cleaning.

Furthermore, floating solar can reduce water evaporation as solar panels cover the surface of water curtailing algae growth, improving water quality. However, environmental concerns, such as possible habitat loss resulting from blocked light, and risks, in particular for materials in highly salted water, remain and need to be further studied.

Another new technology is Building Integrated PV (BIPV), which could be implemented with the use of organic PV or concrete PV cladding. However, BIPV applications are still developing in the MENA region with very few installations.

Organic Thin-film PV is also a new frontier, were thin-film cells are formed by depositing extremely thin layers of PV semiconductor materials onto a support material such as glass,

stainless steel or plastic. This technology leads to higher flexibility, ultra-low weight, and an ultra-thin solar solution. OPV projects are expected to be launched in the MENA region mid- to end-2020, latest by 2021.

Moreover, robotic cleaning, which aims to resolve a critical issue in the solar power industry, as solar plants are suffering from 0.4-1.1% of power output losses on panels due to soiling. The longer the dust is left on solar panels, the greater these numbers increase. However, the way cleaning robots are attached to panels affects some variables that have a bearing on the lifetime of a

Project, and the effectiveness of the cleaning process. To date, panels are still showing damage over time with some types of robots and many systems are beginning to fail after operating in harsh desert conditions.

Finally, Distributed solar is on the rise, and it is believed to play a growing role in the

future in the optimisation of the new energy mix. In Egypt, all administrative

buildings in the New Administrative Capital are expected to be equipped with a solar rooftop.

Energy storage solutions

The report indicates that intermittency has been one of the main issues for the wider adoption of solar energy. Increased competitive storage solutions are, however, quickly changing the landscape. MESIA believes that storage solutions supplying a demand for 24 hours seems to be within reach. CSP projects are anticipated to reach 16 hours of energy storage in the upcoming projects in the UAE, and Morocco.

PV storage is important in MENA countries to increase competitiveness subsidised fossil fuel because although such countries benefit from the high level of solar irradiation, giving solar energy an advantage to produce power during the day, intermittent solar energy is at a disadvantage.

CSP is still marginal, and considered to be expensive; however, in 2018, the MENA region’s CSP capacity had doubled compared to the previous year reaching 725 MW of installed capacity, according to the report. It is expected that CSP projects will become even more competitive in the future.

However, dealing with dust, humidity, and other atmospheric substances that affect the system’s efficiency remains the main concern in MENA. UAE and Morocco are the top countries in CSP projects in the MENA region. The Noor Midelt Hybrid Solar Plant (800 MW) in Morocco, is expected to start commercial operation in 2022, while in the UAE, the Mohammad Bin Rashid Solar Park Phase IV (950 MW) will feature the tallest solar tower (260 meters) using parabolic CSP and PV.

Egypt’s renewable policies in line with ambitious targets

The report indicates that as Egypt’s electricity demand reaching up to 27.6 GW in 2019 and a forecast, by Frost and Sullivan, of 67 GW in 2030, the country needs substantial additional power capacity.

Egypt has set renewable energy targets of 20% of the electricity mix by 2022 and 42% by 2035. Including, 52 GW of both large-scale and distributed on-grid renewable energy by 2035.

MESIA report cites that Egypt adopted a favourable policy through Investment Law No 72/2017, which provided incentives such as tax reductions to boost renewable energy. Also, in 2013 Egypt Electricity Regulatory Authority (ERA) introduced net metring to promote distributed solar power,

and encourages the C&I sector to feed the electricity into the national grid. The maximum capacity allowed recently increased from 5 MW up to 20 MW.

However, the report explains that such projects, mostly PV, are still limited due to intermittency and power stability issues, and their further development will depend on the increase of storage capacities.

Moreover, the Renewable Energy Feed-in Tariff (REFIT) programme, which ran between October 2014 to 2016, targeted large-scale renewable energy projects for a total of 4,300 MW of solar and wind by 2017. It had a decisive impact and resulted in some 20MW to 50 MW projects. Besides, the programme proposed tariffs for residential distributed PV (usually below 10 kW) up to systems between 200 kW to 500 kW.

Also, round two of REFIT launched in September 2016 and aimed at implementing 2 GW of renewable energy. It resulted in a substantial increase in the number of projects achieving financial close in comparison with Round 1.

The report explained that although the ambitious target was not achieved, the programme has completed between 1.4 GW and 1.8 GW of additional renewable generation capacity at a competitive tariff of $0.084 per kWh. This was a significant step-down from the tariff of the

Round 1 Programme ($0.1434 per kWh). Benban Solar Park is implemented with this scheme.

Despite tariffs fixed up to 40% lower than round one, the long-expected currency guarantees, and the inclusion of international arbitration terms played a major role to secure financing from multilateral financial agencies and banks, and allowed the success of the second round of Egypt’s REFIT programme.

Also, an independent power producer (IPP) model introduced, lead to the wind and solar projects from 100 MW to 600MW.

Egypt current, future projects

The report highlights the Benban Solar Park, under the FIT model, has an estimated investment up to $4bn, and is currently under construction with a planned total capacity of 1.8 GW. Benban will include 41 solar power plants located in the Aswan governorate. Once fully operational, the solar park will cut carbon emissions by two million tons per year.

In May 2019, 19 projects of the Benban Solar Park were reportedly connected to the grid.

Six months later, in November, Mohamed El-Khayat, NREA chairman, said that a total of 32

plants with a capacity of 1,465 MW were completed and started commercial operation.

Currently, the construction of four additional new solar power plants with a capacity of 200 MW is engaged on the Benban solar park site.

In October 2019, EETC signed a solar PPA with a developer for the Kom Ombo PV Solar Project with 200 MW at a price of $0.0275 per kW, which is expected to be completed in Q1 2021.

Furthermore, EETC and the International Finance Corporation (IFC) signed in April 2019 an agreement to fund projects selected under the auction system, namely, the West Nile Solar Plant with a capacity of 600 MW.

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B-Electric to construct solar power plant in Zafarana https://wwww.dailynewssegypt.com/2020/01/22/b-electric-to-construct-solar-power-plant-in-zafarana/ Wed, 22 Jan 2020 05:30:25 +0000 https://wwww.dailynewssegypt.com/?p=719839 The three companies technically qualified in the tender included Nary, B-Electric, and Vikram, but were excluded due to technical reasons. The NREA examined the offers submitted in cooperation with Antec consultant to implement the project’s station.

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B-Electric Company has won a tender to construct a solar power plant in Zafarana with a capacity of 50 MW after a competition with Nary.

Sources told Daily News Egypt that the New and Renewable Energy Authority is in the final stages of awarding the plant to B-Electric to build a transformer stations for the project.

The three companies technically qualified in the tender included Nary, B-Electric, and Vikram, but were excluded due to technical reasons. The NREA examined the offers submitted in cooperation with Antec consultant to implement the project’s station.

The sources said that this project is expected to contribute to the production of about 90m kW/h annually, contributing to saving about 18,000 tonnes of oil annually, and reducing the emission of about 50,000 tonnes of carbon dioxide.

The Ministry of Electricity aims to produce 20% of energy from new and renewable sources by 2022, and seeks to open the way for the private sector and Arab and international companies to invest in projects.

The sources said that the numerous requests submitted to the NREA to invest in projects confirm the ability of the renewable energy sector to attract foreign direct investment with positive returns on the economy and to enhance the role of national institutions in creating an investment climate while reducing its risks as well as positive interaction with financing institutions and development partners.

The projects currently implemented include the Zafarana Wind Energy Complex with a capacity of 545 MW, the Gabal Al-Zait Wind Energy Complex with a capacity of 580 MW, a solar thermal station in Koraymat with a capacity of 140 MW, a solar cell project in Kom Ombo with a capacity of 26 MW, as well as feed-in tariff projects in Banban, Aswan with a capacity of 1465 MW.

Orascom-Toyota alliance has completed the launch of a 250 MW wind power plant. Renewable energy projects are being completed with capacities of up to 500 MW.

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9 oil, gas search agreements signed at $452m investment in Mediterranean, Western Desert https://wwww.dailynewssegypt.com/2020/01/21/9-oil-gas-search-agreements-signed-at-452m-investment-in-mediterranean-western-desert/ Tue, 21 Jan 2020 14:40:22 +0000 https://wwww.dailynewssegypt.com/?p=719748 The first agreement in the East Horus region, Western Desert, is with the Egyptian General Petroleum Corporation (EGPC) and Shell, comes at a minimum investment of approximately $24.5m, and a signature grant of $23m to drill five wells.

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Minister of Petroleum and Mineral Resources Tarek El-Molla said that the oil sector continues to sign more new oil and gas agreements as one of the main pillars of attracting foreign investment to intensify research and exploration, in addition to development and production of oil and gas.

This came during the signing by the Minister of Petroleum of nine agreements to search for oil and natural gas in the Mediterranean and Western Desert regions, at a minimum investment of about $452.3m, along with signing grants worth $84m, which includes drilling 38 wells.

El-Molla said the ministry’s strategy aimed to launch new global auctions during the coming period and conclude more oil agreements, pointing out that with the signing of these nine agreements, the number of deals  concluded by the Ministry with investors and partners since July 2014 now reach 79, as well as four other new agreements that were approved by the House of Representatives, to be later signed.

The first agreement in the East Horus region, Western Desert, is with the Egyptian General Petroleum Corporation (EGPC) and Shell, comes at a minimum investment of approximately $24.5m, and a signature grant of $23m to drill five wells.

The second agreement in the area of Abu Senan, Western Desert, with the EGPC and Shell, at a minimum investment of approximately $8.7m and a signature grant of $1m to drill three wells.

As for the third agreement, it is in the Western Fayoum region in the Western Desert with the EGPC and Shell, at a minimum investment of about $24.7m and a signature grant of $27m for drilling six wells.

The fourth agreement in Badr -2 and Badr-17 in Western Desert with the EGPC and Shell, at a minimum investment of about $60m and a $10m signature grant to drill nine wells.

The fifth agreement is an amendment in the Western Knaiss region, Western Desert with the EGPC and Apache at a minimum investment of about $5.5m and a signature grant of $4m to drill two wells, while the sixth agreement is an amendment in the West Kalabsha region of the Western Desert with the EGPC and Apache at minimum investment of about $20.8m and a signature grant of $6m to drill eight wells.

The seventh agreement for the Al-Fanar concession area in the Mediterranean, with EGAS, Shell, and Petronas, at a minimum investment of approximately $129m and a signature grant of $3m to drill two wells.

The eighth agreement in the North Sidi Gaber marine concession area in the Mediterranean with EGAS, Shell, and Petronas, at ma inimum investment of about $180m and a signature grant of $10m to drill three wells.

The ninth agreement for adjusting the price of gas in the Mediterranean concession zone, will be in the Mediterranean, with EGAS, Shell, and BP.

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Ramboll alliance close to winning consultantship for West Nile solar site https://wwww.dailynewssegypt.com/2020/01/20/ramboll-alliance-close-to-winning-consultantship-for-west-nile-solar-site/ Mon, 20 Jan 2020 05:20:54 +0000 https://wwww.dailynewssegypt.com/?p=719667 Sources told Daily News Egypt that the companies eligible to implement the project chose the alliance after competing with two companies. The project will be awarded after the approval of the Egyptian Electricity Transmission Company (EETC).

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Ramboll-Firnas Shuman alliance has applied for the consultantship for site studies and construction of a solar power plant in the West Nile with a capacity of 200 MW.

Sources told Daily News Egypt that the companies eligible to implement the project chose the alliance after competing with two companies. The project will be awarded after the approval of the Egyptian Electricity Transmission Company (EETC).

The sources pointed out that the 13 companies eligible to implement the project agreed to chip in for the consultant costs to conduct studies on the project site, provided that each company gets the studies after they are completed.

The sources pointed out that the total cost of contracting with the consultant would be distributed equally to all companies. Representatives of EDF, Alcazar Energy, Lekela Power B.V., and Orascom assumed the tasks of offering the tender and selecting the consultant.

The EETC had contracted with the Indian company Synergy to undertake consulting works for the project of constructing and implementing the plant, and it is different from the tender that the investors had put forward to conduct land site’s studies.

The consultant undertakes the preparation of technical requirements, and reviews technical and financial offers submitted in cooperation with officials of the EETC, as well as the evaluation to prepare the shortlist, and award the winning companies.

The list of qualified and competing companies on the West Nile station includes Orascom, Infinity, ACWA Power, Alcazar Energy, Lekela Power, Tebia, Masdar, and First Solar among others.

As defined in the Integrated and Sustainable Energy Strategy until 2035, the government has set renewable energy targets at 20% of the electric power grid by 2022 and 42% by 2035.

The total installed capacity of the renewable energy sources is 5,500 MW, which includes 2,800 MW of hydroelectric power, about 2,700 MW of wind and solar energy, including 1,465 MW from solar energy projects in Benban, and 250 MW from a recent wind farm.

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Optimism among energy investors amid demands to accelerate tenders, projects https://wwww.dailynewssegypt.com/2020/01/15/optimism-among-energy-investors-amid-demands-to-accelerate-tenders-projects/ Wed, 15 Jan 2020 16:59:07 +0000 https://wwww.dailynewssegypt.com/?p=719351 ACWA Power to start establishing "Luxor" and "Kom Ombo" stations with 2.45GW capacity

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ACWA Power is implementing a 2,250MW power station in Luxor, and also signed contracts to implement a solar power plant in Kom Ombo with a capacity of 200MW, besides competing for several tenders to implement projects with varying capacities, Country Director of ACWA Power Hassan Amin said.

The company seeks long-term investment in Egypt to benefit from recent legislations and regulations governing investment in the energy sector. “The electricity sector goes through various stages, the first of which was the energy deficit, overcoming it, and then achieve production surplus,” Amin added.

“To avoid falling into the trap of deficits in the next decade, we need a plan to increase production by 20% compared to the needs and determine the real needs of electrical capabilities. I believe that by 2024, we will need to increase the capacities of the electrical network,” he continued.

“The Benban project was not easy to implement, and we should be proud of the ability to achieve this starting in 2015 after getting out of difficult conditions and attracting a large number of foreign investors,” he added.

He pointed out that the company operates in 12 countries with an investment volume exceeding $35bn and production exceeding 28GW.

Taymour Abu Al-Khair, chief investment officer sector at Infinity Solar, said that his company is optimistic about the future of investment in energy, but the pace of resolving tenders and the implementation of projects must be accelerated, as well as passing a law for the independent electricity producer, which stipulates that the private sector may sell electricity directly to consumers.

He explained that Infinity Solar has developed a strategy to implement renewable energy projects in Egypt with a capacity of 1GW within the next five years, and is developing long-term plans to implement projects in cooperation with international financing institutions.

He expects that the demand for contracting with private companies to buy electricity produced from renewable energy plants to increase, especially with the state’s tendency to raise subsidies permanently on electricity, according to what the government announced earlier.

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A positive outlook for renewable energy investments in Egypt https://wwww.dailynewssegypt.com/2020/01/15/a-positive-outlook-for-renewable-energy-investments-in-egypt/ Wed, 15 Jan 2020 16:54:32 +0000 https://wwww.dailynewssegypt.com/?p=719349 Energy needed for 1.5m-feddan reclamation project estimated at 2GW: Al-Sobky

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Egypt has come a long way in electricity generation from renewable resources. The outlook for the renewable energy is “very positive” with more new investments in the sector are expected, says former head of the New and Renewable Energy Authority (NREA) Mohamed Salah Al-Sobky.

The laws and legislations that have been adopted recently in the country encouraged the private sector to invest largely in the sector. It is also developing gradually, and is witnessing real competition that is in the interest of the state and the consumers, as major international companies enter the local market to provide high-quality services at low prices, he adds in statements to Daily News Egypt.

However, further efforts are needed to develop this sector, such as studies of sunlight intensity, bird migration, and wind speed, and there must be strong networks that can absorb the produced electricity.

Al-Sobky estimated the energy needed for the 1.5m-feddan reclamation project at 2GW.

“If the industrial sector gets 3% of its energy from renewable resources, this will increase the demand for renewable energy, and will prompt companies to produce more electricity and sell it directly to users without waiting for the government to conclude purchasing contracts of the produced energy,” he said.

Moreover, Hafez Salmawy, former head of the Egyptian Electric Utility & Consumer Protection Regulatory Agency, said the feed-in tariff projects in Benban Solar Park had accounted for about 15% of investment flows to Egyptian the last four years. The project showed the attractiveness of investment in the energy sector, and that demand exists when rules and regulations do, he told DNE.

He noted that the business community in Egypt had responded quickly to the market developments and established partnerships and alliances with international companies to compete on implementing renewable energy projects.

“Renewable energy can beat the petroleum sector in Egypt, and be the first destination for Arab and international investors,” Salmawy added.

To attract more investment in the renewable energy sector, the Egyptian government needs to put a clear plan every 3-4 years defining investment opportunities in the sector. Investors should also be involved in preparing those plans, so that they can be ready to implement them. In addition, the organisational and legal frameworks of the market should be updated regularly to keep pace with global developments.

Ageing infrastructure, energy shortage, dependence on a single energy resource meant Egypt had to make a move somewhere. So far, the government succeeded in its switch to renewables. Egypt currently has great energy production capabilities from various energy resources, so appropriate planning is necessary for the coming period to build on this progress.

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Finishing procedures, resolving renewable energy projects with a capacity of 1350 MW this year https://wwww.dailynewssegypt.com/2020/01/15/finishing-procedures-resolving-renewable-energy-projects-with-a-capacity-of-1350-mw-this-year/ Wed, 15 Jan 2020 16:51:36 +0000 https://wwww.dailynewssegypt.com/?p=719347 The authority seeks to attract foreign direct investment and facilitate procedures: Khayat

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In 2020, the Ministry of Electricity plans to resolve tenders of renewable energy projects with a capacity of 1350 MW, comprising solar energy projects with a capacity of 600 MW in the West Nile via auctions, in addition to two tenders for the construction of two solar and wind stations in the West Nile with a capacity of 450 MW.

Consultations are being held on finalising the procedures for establishing a Vistas company wind energy plant with a capacity of 200 MW. The tender that was launched a long time ago and funded by foreign banking institutions, as well as resolving the tender for the construction of a solar power plant in Zaafarana with a capacity of 50 megawatts, which is competed on by a number of companies.

Mohamed Al-Khayyat, head of the New and Renewable Energy Authority, said that Egypt made significant investments in the field of renewable energy and is constantly increasing, helping the Egyptian economy recover over time.

He explained that the authority is always looking to attract Arab and international companies to invest in Egypt by establishing plants to produce electricity from renewable sources as a way of diversifying sources of energy production. The government’s overall plan is to have 20% of the national electricity grid  powered by renewable energy by 2022.

He explained that the authority has long-term plans for large areas suitable for renewable energy stations in Egypt. The country already allocated land areas of 7,600 square km to establish projects to produce renewable energy.

He stressed that these areas are distributed between 1200 square km along the Red Sea coast, about 4200 square km in the West Nile region, and about 2200 square km in the East Nile region distributed over three governorates: Beni Suef, Minya, and Assiut.

According to the controls set by the Ministry of Electricity, there is a number of mechanisms through which projects are submitted to investors, and they include competitive bidding, bidding auctions, feed-in tariffs, net measurement, and independent producer.

According to government procedure for projects such as renewable energy production, there are two entities that must be consulted with before implementing a project. One entity is the Egyptian Electricity Transmission Company (EETC), specialised in purchasing the electricity produced from the stations under an agreed-upon tariff. The other entity is the New and Renewable Energy Authority, specialised in granting lands under its umbrella using usufruct.

Sabah Mashaly, head of EETC, said that various energy station projects are in different stages of studies and procedures, and the EETC is committed to purchasing their productive capabilities after entering into contracts.

She emphasised that the feed-in tariff projects opened investors’ appetite to implement renewable energy plants in Egypt. The EETC received many requests from Egyptian, Arab, and foreign companies to launch projects, confirming the attractiveness of the sector to direct investment.

She said that the EETC has concluded many memoranda of cooperation and agreements to purchase energy with Arab and international companies, and has an integrated vision to take advantage of investors’ electrical capabilities, whether for domestic use or export.

Mohamed Abdel Rahman, CEO of the Electricity Utility and Consumer Protection Regulatory Agency, said that electricity and renewable energy sector in Egypt had a great development, achieved an unprecedented boom, and the Egyptian model in the energy file received great international attention.

He stressed that the Zambia and some COMESA countries began to copy and apply the Egyptian model and even translated the Egyptian Electricity Law into French with plans to implement it.

He explained that the solar energy complex in Benban, Aswan, reflects Egypt’s success in providing a mixture of energies of various forms, which enhances the ability of the energy sector to attract foreign direct investment, through the largest specialised Egyptian companies in this field.

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Egypt will stop collecting cleaning fees on electricity bills starting July https://wwww.dailynewssegypt.com/2020/01/13/egypt-will-stop-collecting-cleaning-fees-on-electricity-bills-starting-july/ Mon, 13 Jan 2020 18:45:08 +0000 https://wwww.dailynewssegypt.com/?p=719097 Egypt Sovereign Fund is still selecting a consultant for the evaluation of Siemens power plants

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The Ministry of Electricity has decided to stop collecting cleaning fees on electric bills starting July.

Mohamed Shaker, Minister of Electricity, said that distribution companies would continue to collect cleaning fees until June consumption bill. They shall be removed from the bill in July, he added.

Shaker said during his speech in parliament Monday that he made several requests for the cabinet to stop collecting cleaning fees on the electricity consumption bills, especially as it is not within the scope of the ministry’s work, and causing problems in collection and supply for the relevant authorities.

He emphasised that the total cleaning fees in the last fiscal year amounted to EGP 1.1bn, including EGP 566m supplied to the provinces and localities, and the rest were not collected with electricity bills, and thus became indebted to the electricity companies.

With regard to the problems of high electric bills, Shaker stressed that prices are announced and consumption is calculated based on the established tariff, and within the framework of the ministry’s keenness to respond to consumers and to avoid any mistakes. The unified readings programme will be generalised this year, which is now being provided to some 4 million subscribers.

Shaker told Daily News Egypt that the subsidy allocated to homes in the current fiscal year reached EGP 36bn.

He noted that the executive regulations for installing coded metres is next month, and upon approval, distribution companies would receive requests for installation.

He said that Egypt’s sovereign wealth fund is still selecting a consultant to evaluate the Beni Suef, Burullus, and the New Administrative Capital power plants.

Egypt’s sovereign fund plans to obtain a 30% stake in the three power plants, currently owned by German company Siemens. As of now, six international investors have expressed interest in managing and operating the three power stations, along with the direct investment fund Actis providing a letter of intent to acquire one of the Siemens stations put up for sale by the government.

The chosen consultant will undertake the review of documents and contracts in order to assess the cost of the stations. All this comes in preparation for foreign companies to invest and buy shares in these stations.

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Benban solar investors to decide on complex’s service management contract in January https://wwww.dailynewssegypt.com/2020/01/08/benban-solar-investors-to-decide-on-complexs-service-management-contract-in-january/ Wed, 08 Jan 2020 20:46:25 +0000 https://wwww.dailynewssegypt.com/?p=718684 According to a source from Benban solar park, Hassan Allam has the right to participate in the service management tender again, if its contract was not renewed. The company’s first contract was awarded in the period of construction and installation of the project which differs the future stages.

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Hassan Allam’s contract to manage utilities and services for solar energy projects in Benban, Aswan, will expire this month, and the solar park investors should decide either to renew the contract, or to launch a tender for a new service provider.

The construction firm won the contract to manage utilities and services of Benban projects in 2017 after competition with several local and international companies in the project’s tender. The firm was chosen by the solar power companies developing plants in Benban under the feed-in tariff programme.

According to a source from Benban solar park, Hassan Allam has the right to participate in the service management tender again, if its contract was not renewed. The company’s first contract was awarded in the period of construction and installation of the project which differs the future stages.

Hassan Allam established and set regulatory rules of all the utilities of Benban complex, including water, sanitation, fencing, housing, infrastructure, traffic, and community services.

The source noted that the new service management contract will focus on traffic, occupational safety, community services, waste management, and fencing.

The Benban Solar Energy Developer Association representing companies working on projects in the Benban is responsible for handling the service management. The service management costs are divided amongst all the complex’s investors based on the capacity of each station.

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Cabinet abolishes unmetered connections, replaces it with temporary metering system https://wwww.dailynewssegypt.com/2020/01/08/cabinet-abolishes-unmetered-connections-replaces-it-with-temporary-metering-system/ Wed, 08 Jan 2020 14:07:52 +0000 https://wwww.dailynewssegypt.com/?p=718643 Distribution companies start receiving orders this month

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The cabinet abolished the unmetered electricity connection system last week and replaced it with temporary metering.

It comes in line with the Prime Minister’s decision no. 886 of 2016, amended by decision no. 231 of 2017, to install temporary metres in all buildings that have illegal electricity connections until adjusting their situation or else implementing the administrative rulings issued in this regard without any legal rights for violators.

Ayman Hamza, spokesperson for the Ministry of Electricity, said the electricity distribution companies will start receiving requests from citizens wishing to install temporary metres this month. Each distribution company will determine the costs of measurement, inspection, and metre installation, as well as set a date for paying the metre’s price.

He explained that the Ministry wants to facilitate procedures of installing electricity metres allowing applicants to pay their bills through Fawry outlets and electricity distribution companies, and will soon be available through mobile payments.

Unmetered connection describes reconciliation over illegal obtaining of electricity current. When such problems are observed, the concerned authorities including the Electricity Police make a report, which can end with imposing a fine or imprisonment.

Hamza said that the fine imposed on unmetered connection could be less or more than the actual fee of consumption. The new temporary metres will preserve the rights of the state and the users. These metres will have serial numbers and not linked to the name of the user, thus does not serve as a proof of ownership nor legalise the unit’s status.

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Electricity Ministry aims to establish hydroelectric stations in Delta https://wwww.dailynewssegypt.com/2020/01/08/electricity-ministry-aims-to-establish-hydroelectric-stations-in-delta/ Wed, 08 Jan 2020 14:02:19 +0000 https://wwww.dailynewssegypt.com/?p=718641 Ministry chose seven sites eligible to launch the projects with capacities of 2-5MW

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The Ministry of Electricity seeks the approval of the Ministry of Irrigation to establish small hydroelectric stations in Al-Qanatir al-Khayreyah and Delta.

Several studies were conducted on some areas in the Delta to ensure the possibility of implementing small hydroelectric plants with different capacities ranging between 2 to 5MW, and seven sites were found eligible, a source from the Ministry of Electricity told Daily News Egypt.

The German Development Bank (KfW) allocated €30m to finance the construction of small hydroelectric plants in Egypt, and a German company conducted a study in coordination with the Hydro Power Plant Executive Authority (HPPEA) to discuss ways to implement these projects.

The source added that the Ministry of Irrigation objected the idea, but there are still discussions on this matter, which are expected to be settled in the first half of this year.

The HPPEA has started the operation of the Assiut hydroelectric station at full capacity of 32MW, to be the largest power station on the Nile in Egypt. The station consists of four units of 8MW each and is expected to save fuel worth EGP 100m annually.

The source explained that hydroelectric stations achieve high operational efficiency compared to other traditional and renewable energy plants.

The average annual energy produced from existing water stations in Egypt is currently about 13bn kw/h, which saves fuel equivalent to 3m tonnes of oil annually, in addition to its contribution to reducing the emission by 7.2m tonnes of carbon dioxide.

The source said that the HPPEA has received offers from investors to cover small canals with solar panels to benefit of these areas in the production of electricity, and these offers are being studied.

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ZYFRA plans to implement similar projects to Intelligent Mine in Middle East in 2020 https://wwww.dailynewssegypt.com/2020/01/08/zyfra-plans-to-implement-similar-projects-to-intelligent-mine-in-middle-east-in-2020/ Wed, 08 Jan 2020 13:59:59 +0000 https://wwww.dailynewssegypt.com/?p=718642 The use of smart mines, connected workforce, and enlightened operators contribute to improving safety practices and adding real commercial value to mining operations.

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Igor Bogachev, CEO of ZYFRA, said his company is implementing the Intelligent Mine project in India, and plans to introduce the company’s solutions in the mining markets of the Middle East by the end of this year.

He explained that Zyfra will undertake the supply, installation, composition, and integration of a complete set of equipment, maintenance of the system, transfer of expertise and training workers for a period of one year.

Zyfra’s Intelligent Mine includes ZM Karier: Mine Fleet Management System with automatic dispatch system of haul trucks, ZM Drill: Automated Drilling and Blasting Control System and ZM Scarex: Machine Guidance Digging Systems, integrated with Payload and Fuel Level Monitoring System, Tyre Management System, Equipment Diagnostic Systems and other resource planning and application software for data import and export related to planning, production, equipment performance, manpower attendance, real-time analytics.

The use of smart mines, connected workforce, and enlightened operators contribute to improving safety practices and adding real commercial value to mining operations.

“With every passing year, mining operations are carried out in progressively more complex and dangerous geological and climatic conditions. In order to increase production efficiency in accordance with industrial safety standards, there is a need to develop innovative solutions for the mining industry, including dispatching and diagnostic systems, autonomous or unmanned control systems for dump trucks and drilling rigs and predictive maintenance, and analytics for solving mining process optimisation problems,” Bogachev said.

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NREA conducts 40 product tests of imported solar cells over two months https://wwww.dailynewssegypt.com/2020/01/08/nrea-conducts-40-product-tests-of-imported-solar-cells-over-two-months/ Wed, 08 Jan 2020 13:56:23 +0000 https://wwww.dailynewssegypt.com/?p=718640 Decision to compel importers to demonstrate the quality of the products before they are traded has not yet been implemented: Source

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The New and Renewable Energy Authority (NREA) conducted 40 tests of imported solar cells over the past two months, a source from the authority told Daily News Egypt.

The government’s decision to oblige heater and solar cell importers to conduct product testing at the NREA starting from 23 October 2019 has not been applied yet, however companies conducted the tests out of a certain sense of moral obligation, the source added.

There are ongoing consultations and meetings between the NREA, the General Organization for Export & Import Control (GOEIC), and the Egyptian Organization for Standards & Quality (EOS) to reach an agreement and formally implement the decision. “Some bodies asked to clarify their role in the testing process,” he said.

The main goal of the decision is to ensure the quality and efficiency of the products that are imported and installed in Egypt, and an efficiency certificate is issued if they met specifications. If any products were not subject to examination, they will be confiscated.

The decision was issued last year by Amr Nassar, former minister of trade and industry, and asked importers to adjust their situation. The violators will be subject to penalties of Law no. 48 for 1941.

The maximum testing fee is estimated at EGP 40,000 for each container, whether it contains heaters or solar cells. General testing fee stands at EGP 240, EGP 1,800 for insulation resistance test, EGP 2,100 for thermal shock testing, EGP 2,000 for electrical power testing, EGP 2,000 for measurement of the radial distribution of the heat transfer coefficient of the solar cell, and EGP 2,000 for temperature performance test.

The NREA held a workshop last October for suppliers of solar photovoltaic systems and heaters to discuss the implementation of the decision.

Some 20 importers participated in the workshop, in the presence of Mohamed Al-Khayat, chairperson of the NREA, and Ehab Farouk, planning manager and supervisor of the solar energy plants in the NREA.

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Parliament to discuss abolition of HPPEA in February https://wwww.dailynewssegypt.com/2020/01/08/parliament-to-discuss-abolition-of-hppea-in-february/ Wed, 08 Jan 2020 13:54:46 +0000 https://wwww.dailynewssegypt.com/?p=718623 The government aims to assign the responsibilities of HPPEA to NREA

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The Parliament will discuss a draft law presented by the government to abolish the Hydro Power Plant Executive Authority (HPPEA) and assign it responsibilities to the New and Renewable Energy Authority (NREA) in February.

The cabinet has earlier approved the draft law, and it is scheduled to be reviewed by the State Council after the parliament’s approval, and then presented to the president for ratification.

Government sources told Daily News Egypt that the process of transferring the assets of the HPPEA to the NREA cannot start before the law is approved, and it may take up to 15 months after the approval.

The draft law stipulates that all the assets and obligations of the HPPEA shall be transferred to the NREA after evaluation. The NREA shall also replace the HPPEA in all ongoing contracts.

Mohamed El-Khayat, the NREA head, told Daily News Egypt that the decision aims to unify all renewable energy projects under one umbrella.

Moreover, Mohamed Abdel Kader, head of the HPPEA, said the authority will work normally and continue to negotiate new projects until the issuance of the law.

The HPPEA’s budget for the fiscal year (FY) 2019/20 is about EGP 7.6bn, while its revenues reached EGP 2.3m so far, and expenditure of EGP 490m, most of which for implementing studies and workers’ wages.

As for the budget of the NREA, the authority’s budget is EGP 7.6bn for FY 2019/20, with EGP 2.3bn expenditure and EGP 1.9bn revenues.

According to the draft law, the workers of the HPPEA shall be transferred to several bodies affiliated to the Ministry of Electricity and to the Egyptian Electricity Holding Company and its subsidiaries with the same grade-levels.

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Electricity Ministry considers adding renewable energy offers to its 2035 Strategy https://wwww.dailynewssegypt.com/2020/01/08/electricity-ministry-considers-adding-renewable-energy-offers-to-its-2035-strategy/ Wed, 08 Jan 2020 13:52:25 +0000 https://wwww.dailynewssegypt.com/?p=718622 Arab, international companies offered to build new power stations with a total capacity of 5GW, says Shaker

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The Ministry of Electricity studies adding bids of private companies to establish renewable energy plants to its 2035 Strategy which aims to produce about 47% of Egypt’s total energy from renewable resources.

Ministry of Electricity has formed several committees including the Egyptian Electricity Holding Company (EEHC), the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA) to study offers by investors to establish energy projects with a total capacity of 5GW, Minister Mohamed Shaker told Daily News Egypt.

He stressed that the Ministry will not sign any energy contracts or agreements beginning from this year before it ensures their suitability to the 2035 Strategy.

“Every year, we will announce our plans and target projects, upon which companies can apply to launch power plants and the Ministry will choose the best technical and financial offers,” Shaker said.

The global challenges in the energy sector require the development of production and consumption of electricity. These challenges are fossil fuel depletion, climate change, global warming, and the 17 sustainable development goals set in 2015 by the United Nations.

“The most important of these challenges are: the shift from traditional to smart networks, from regional to global electrical interconnection, from traditional to electric cars, and from fossil-fuel to renewable energy plants,” Shaker added.

Electrical interconnection projects have many benefits in technical, economic, environmental, social, political, and legal aspects. Such projects strengthen security and stability of neighbouring countries as they create an atmosphere of cooperation and dialogue and common economic interests during the construction and operation period.

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GASREG lowers gas grid usage fees to stimulate investment in the sector: source https://wwww.dailynewssegypt.com/2020/01/05/gasreg-lowers-gas-grid-usage-fees-to-stimulate-investment-in-the-sector-source/ Sun, 05 Jan 2020 10:12:19 +0000 https://wwww.dailynewssegypt.com/?p=718308 The decision dates back to March 2018, and is subject to annual review

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The Gas Regulatory Authority’s (GASREG) decision to reduce the usage fees for the national gas grid aims to stimulate more investments from the private sector in the domestic gas market, a source in the GASREG told Daily News Egypt on Saturday.

He explained that the step also seeks to encourage local companies to buy gas from foreign partners and sell it to industrial consumers locally at prices they both agree on.

Media reports last Sunday said that Egypt has lowered the usage fees for its national gas grid by 24% to $0.29 per one million British thermal units (mmbtu). Egypt had first set the usage fees at $0.38 per mmbtu in August 2018 for a year.

The source revealed that this decision was made last March, and the GASREG will review these fees annually.

He pointed out that reducing gas grid usage fees is within the state’s procedures to liberalise the energy market, and allowing the private sector to operate and obtain licences from the gas market regulator to transfer, sell, and trade the natural gas.

He added that the only user of the national gas grid is the Egyptian Natural Gas Company (GASCO), affiliated to the Egyptian Natural Gas Holding Company (EGAS), which is responsible for obtaining gas from foreign partners and selling it to the final consumer locally or directing it for export.

The GASREG said on its website that these unified fees would be applied nationwide.

In February 2018, Egypt issued executive regulations that allow the private sector to import and sell natural gas, after the parliament has approved the law in 2017 and established the gas market regulator, which the government hopes will attract greater participation from the private sector in the rapidly growing gas market.

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Oil prices jump to highest level in more than 3 months, recording $68.66 https://wwww.dailynewssegypt.com/2020/01/04/oil-prices-jump-to-highest-level-in-more-than-3-months-recording-68-66/ Sat, 04 Jan 2020 20:45:27 +0000 https://wwww.dailynewssegypt.com/?p=718230 Brent rise will not affect Egypt, thanks to hedging mechanism: Source

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Oil prices jumped to the highest level in more than three months at the end of trading this week, as Brent barrel reached $68.66 after the United States killed a prominent Iranian military commander in Iraq, which raised fears that the escalation of the conflict in the Middle East may disrupt crude supplies from the region.

A source in the petroleum sector told Daily News Egypt that the Egyptian government succeeded in securing the state budget from fluctuations in global oil prices after it renewed the hedging contract with GB Morgan and Citibank.

He explained that Egypt reviews the value of hedging with banks every three months, up and down, and sets the value according to market expectations and global changes.

The source pointed out that the government fixed the prices of petroleum products for the next three months, in parallel with fixing the value of the hedge against price fluctuations, thus protecting the state’s general budget from any additional burdens.

The automatic pricing committee for petroleum products recently decided to fix the sale price of all three types of gasoline products in the local market at EGP 6.5 per litre for gasoline 80, EGP 7.75 for gasoline 92 and at EGP 8.75 for gasoline 95.

The committee also decided to keep the diesel sales price at EGP 6.75 per litre and fix the selling price of fuel oil tonnes for non-electricity and bakery uses at EGP 4,250 per tonne, in light of the fixed cost of selling and making those petroleum products available in the local market.

The source pointed out that the follow-up committee for the automatic pricing of petroleum products revises the price equation on a quarterly basis, so that the selling price of petroleum products is linked to the local market, with the exception of gas stove and petroleum products used by the electricity and bakeries sectors.

Medhat Youssef, a former vice-president of the Egyptian Petroleum Corporation (EGPC), expected that the price of a barrel of oil would break the $70/barrel barrier in the event of continued military skirmishes between the US and Iran.

He said that the price of a barrel of oil globally exceeded the price specified in the state budget for the fiscal year 2019/20, estimated at $68/barrel. Youssef explained that the government’s hedging against oil price fluctuations globally, contributed greatly to securing the budget and the ability to stabilise the prices of petroleum products on the local market.

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Egypt holds prices of petrol, diesel in quarterly reveiw https://wwww.dailynewssegypt.com/2020/01/02/egypt-holds-prices-of-petrol-diesel-in-quarterly-reveiw/ Thu, 02 Jan 2020 17:46:52 +0000 https://wwww.dailynewssegypt.com/?p=718205 The committee also decided to keep the diesel price at EGP 6.75 per liter and hold the selling price of diesel tonnes for non-electricity and bakery uses at EGP 4250 per tonne.

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Egypt’s fuel price indexation committee, decided to keep fuel prices unchanged on Thursday.

The committee which reviews and determines the prices of some petroleum products on a quarterly basis, maintained hold the price of three types of petrol products in the local market at EGP 6.5 per liter for 80 octane petrol, 92 octane petrol stands at EGP 7.75 per liter and at EGP 8.75 per liter of octane 95 peytol.

The committee also decided to keep the diesel price at EGP 6.75 per liter and hold the selling price of diesel tonnes for non-electricity and bakery uses at EGP 4250 per tonne.

The committee attributed the decision to the stability of crude oil prices from October 2019 to December 2019 at around $62.5 per barrel.
Furthermore, the decision was driven by the appreciation of the value of Egyptian pound against US dollar during the last quarter of 2019 as announced by the Central Bank of Egypt to achieve an average of EGP16.20 for the US dollar during the follow-up quarter.

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Benban investors offer to pay EGP 700m to solve the cost-sharing dispute, pay remaining amount on instalments https://wwww.dailynewssegypt.com/2020/01/01/benban-investors-offer-to-pay-egp-700m-to-solve-the-cost-sharing-dispute-pay-remaining-amount-on-instalments/ Wed, 01 Jan 2020 21:41:40 +0000 https://wwww.dailynewssegypt.com/?p=718060 EETC to set the value owed by companies in days, seeks to put interest on instalments

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Investors of the solar energy feed-in tariff in Benban, Aswan, are seeking to bring down the curtain on the cost-sharing agreement crisis with the Egyptian Electricity Transmission Company (EETC) to pay EGP 700m and pay the remaining amount in instalments.

Informed sources told Daily News Egypt that the meetings that took place resulted in a compromise between investors and the EETC, which includes the payment of EGP 700m, and paying the remainder of costs over several instalments spanning 3-5 years.

The sources said that the EETC will set the total value of the cost-sharing agreement within days, and will send a consolidated letter to all investors regarding this value.

The sources indicated that the total value is still within the framework of discussions by EETC officials as investors demanded some of the sums mentioned in the consolidated statement be waived.

The sources noted that the EETC is still examining the investors’ requests to pay instalments over a period of 6 to 7 years but the requests are still under discussions, since it may result in adding interest.

The sums will be distributed among 32 companies that have implemented solar power stations and sell all produced energy to the EETC.

The EETC has requested that investors pay EGP 2.4bn in cost-sharing value settlements in May of last year before reducing the amount to EGP 1.9bn.

The cost-sharing agreement is one of the five agreements signed by qualified investors to establish new and renewable energy projects, according to the feed-in tariff scheme. This includes sharing in the cost of connecting solar energy plants into the national electricity grid, infrastructure works in the Benban region, and establishing walls and guard towers.

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Egypt reduces gas exports via Idku due to instable Mediterranean navigation https://wwww.dailynewssegypt.com/2019/12/31/egypt-reduces-gas-exports-via-idku-due-to-instable-mediterranean-navigation/ Tue, 31 Dec 2019 16:57:19 +0000 https://wwww.dailynewssegypt.com/?p=717985 Exports fell by 600m scf/day: Source

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The Egyptian Holding Company for Natural Gases (EGAS) reduced Egypt’s gas exports through the Idku liquefaction plant to about 400m cubic feet per day (scf/day), due to the instability of navigation in the Mediterranean.

A source in EGAS told Daily News Egypt that the instability of navigation in the waters of the Mediterranean Sea made it difficult for ships carrying LNG shipments to enter Egyptian waters and dock in the Liquefied Gas Shipping Port of the Idku plant.

He added that the quantities of gas exported through Idku decreased by about 600m scf/day as the quantities exported since the middle of last month were 1 bn scf/day, while the state of navigation in the Mediterranean was stable.

The source pointed out that the LNG shipments that are sold are made through contracts for the Dutch company, Shell, and offerings by EGAS from its share to importers to obtain quotations, with the selection of the best price.

According to the source, the reduction in exports was compulsive due to the bad weather and the instability of navigation in the Mediterranean Sea at the beginning of this week.

The source stressed that EGAS is committed to satisfying the entire export contracts for foreign markets, but after the stability of the navigation situation.

The quantities of gas that are directed for export through Idku are determined according to the shipments contracted to supply during the current period periodically, with regular pumping through the national gas network, the source explained.

The source added that the quantities of natural gas exports through the Idku plant increased so that Egypt would return to the global markets strongly after years of absence after it achieved local self-sufficiency with a surplus of production.

The source pointed out that the quantities of gas destined for export via Idku gradually increased, after increasing domestic production and declining consumption, while satisfying all the needs of the industrial sector, power plants, cars, and homes.

The contracting share of the Idku Liquefaction Plant is estimated at 1.13 bn scf/day and the ownership structure of the plant is divided into 12% by the Egyptian General Petroleum Corporation (EGPC), 12% by EGAS, 35.5% by Shell, 35.5% by Petronas, and 5% by Gaz de France.

Egypt’s natural gas production increased to about 2.7 bn scf/day, compared to 6.2bn scf/day during the past year.

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Egypt awards oil exploration concessions in Red Sea for first time https://wwww.dailynewssegypt.com/2019/12/30/egypt-awards-oil-exploration-concessions-in-red-sea-for-first-time/ Mon, 30 Dec 2019 08:30:39 +0000 https://wwww.dailynewssegypt.com/?p=717863 In February, the results of the geophysical data analysis in the Red Sea, carried out by Schlumberger in cooperation with Ganope, pointed out that there is a 70% chance for new natural gas discoveries.

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Chevron, Shell, and Mubadala have been awarded oil and gas exploration concessions in the Egyptian Red Sea area in an international tender, the Ministry of Petroleum announced on Sunday.

Minister of Petroleum Tarek El-Molla affirmed that Egypt will start exploiting its oil and gas wealth in its Red Sea economic waters for the first time.

In February, the results of the geophysical data analysis in the Red Sea, carried out by Schlumberger in cooperation with Ganope, pointed out that there is a 70% chance for new natural gas discoveries.

The Red Sea is one of the most promising areas in Egypt, as no exploration activities were undertaken before the agreement on the demarcation of the maritime border with Saudi Arabia in 2017.

The first concession block was awarded to Chevron, the second to Shell, while a third block was awarded jointly to Shell and Mubadala with a total exploration area of around 10,000 square km and with a minimum investment of $326m, the ministry explained in the statement

Egypt’s oil and gas sector has been one of the top receivers of foreign direct investments (FDIs) in 2019. In the third quarter of 2019 net inflows for oil and gas sector investments rose by $256.4m to $744.2m.

Egypt has finalised a new form of petroleum agreements for the first exploration tender in the Red Sea. The agreements include new incentives, such as increasing the partner’s share and reducing the expense recovery period, in a bid to encourage foreign companies to further invest in Egypt’s oil and gas sector.

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NEEASAE considers exploiting its 13,000 sqm land in Damanhur https://wwww.dailynewssegypt.com/2019/12/28/neeasae-considers-exploiting-its-13000-sqm-land-in-damanhur/ Sat, 28 Dec 2019 14:18:27 +0000 https://wwww.dailynewssegypt.com/?p=717669 Company is studying the possibility of offering it to investors and establishing a mall for electrical products

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El Nasr for Electric & Electronic Apparatus Company (NEEASAE) considers exploiting its land plot in Damanhur estimated of 13,000 sqm.

Informed sources told Daily News Egypt that the company’s board of directors is studying some investment options, including establishing a shopping mall specialised in selling electrical products, opening new production lines of its factories, or offering the land to investors to launch projects that achieve return to the company.

The sources pointed out that a certificate of validity for the land was not issued due to the local council’s demand to deduct one-third of the land area for streets and public facilities without compensation due to the fact that the land was sold in feddan and now the price increased and is sold in square metres.

NEEASAE has four factories in Alexandria for the production of glass and bulbs. The company will study the feasibility of moving these factories, since some of their production lines were established in the 1970s and 1980s.

The financial results of the company for the past fiscal year shows that its produced was estimated at EGP 150m and achieved sales of EGP 140m, with a net profit of EGP 750,000.

Moreover, the company’s production increased in the last fiscal year by about 117% year-over-year, where the value of what was produced in FY 2018/19 reached about EGP 150m, compared to EGP 128.1m in FY 2017/18.

NEEASAE was established in 1930 under the name Philips and in 1944 the production of incandescent bulbs started, and then the production of acoustics and visuals in 1956.

The company produced black and white television in 1964, began producing fluorescent bulbs in 1974, and colour television in 1978. In January 1998, the Egyptian government bought the share of Philips Company and became 100% Egyptian under the name NEEASAE. It is affiliated to the Holding Company for Chemical Industries related to the Ministry of Public Enterprise Sector.

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EEHC studies draft contract for pumped-storage hydroelectricity station by Sinohydro in Ataka https://wwww.dailynewssegypt.com/2019/12/28/eehc-studies-draft-contract-for-pumped-storage-hydroelectricity-station-by-sinohydro-in-ataka/ Sat, 28 Dec 2019 14:06:59 +0000 https://wwww.dailynewssegypt.com/?p=717653 Sources at the Ministry of Electricity told Daily News Egypt that the company Artelia, which is responsible for consulting the project, sent the final draft of the contract two weeks ago for approval.

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The Egyptian Electricity Holding Company (EEHC) studies an offer from the Chinese Sinohydro to establish a pumped-storage hydropower station in Ataka, Suez governorate.

Sources at the Ministry of Electricity told Daily News Egypt that the company Artelia, which is responsible for consulting the project, sent the final draft of the contract two weeks ago for approval.

The sources said that the final contracts for the project are scheduled to be signed during the first half of next year, adding that Exim Bank of China will finance the project with low interest, and the Egyptian Electricity Transmission Company will purchase the energy produced from the project.

The Ministry of Electricity had asked the national centre to plan the use of the country’s lands to obtain additional areas in Ataka, with 168,000 square metres, to implement a pumped-storage hydroelectricity station.

A ministry official said that the area designated for the project was cleared of mines, and the approvals were obtained from the authorities concerned with the implementation of the project, and all the permits for workers and equipment in the project have been extracted, and Sinohydro is seeking to obtain an additional plot of land for the station.

Sinohydro is responsible for the implementation of the pumped-storage hydroelectricity station in Ataka, using the EPC + FINANCE system, where the Chinese company provides funding from banking authorities and submits them to the EEHC and undertakes the implementation of the project.

The sources said that this project was the largest of its kind in the Middle East, to generate electricity from water stations using pumping and storage technology and is ranked fifth in the world.

The sources added that the Pumped-storage hydroelectricity technology that will be carried out in the Ataka project is one of the best technologies for storing electricity in the world, and it has many benefits, especially with regard to costs in operating networks and storage safety factors for solar and wind energy, as well as achieving a safe rate to secure and stabilise the electricity network.

The projects contribute to the consolidation of the unified electrical network and are used to store the electrical energy produced from renewable energy sources and improve the reliability of these sources in the supply of electrical energy, he concluded.

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Egypt signs four petroleum agreements for oil, gas exploration with investments worth $155m https://wwww.dailynewssegypt.com/2019/12/26/egypt-signs-four-petroleum-agreements-for-oil-gas-exploration-with-investments-worth-155m/ Thu, 26 Dec 2019 08:00:05 +0000 https://wwww.dailynewssegypt.com/?p=717491 Minister of Petroleum and Mineral Resources, Tarek El Molla  stated that the first agreement  is signed between the Egyptian General Petroleum Corporation and International Egyptian Oil Company (IEOC) for oil and gas exploration in the south-eastern Siwa concession area in the Western Desert, with a  minimum investment of about $17m, allocating about $1.2m to drill four new wells.

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Egypt has signed four new agreements for oil and gas exploration with minimum investments worth $155m in the Western Desert, Suez Gulf, and the Nile Valley for drilling 30 wells.

Minister of Petroleum and Mineral Resources, Tarek El Molla  stated that the first agreement  is signed between the Egyptian General Petroleum Corporation and International Egyptian Oil Company (IEOC) for oil and gas exploration in the south-eastern Siwa concession area in the Western Desert, with a  minimum investment of about $17m, allocating about $1.2m to drill four new wells.

Regarding the second agreement, El Molla declared in a press statement on Wednesday that it is signed between the Egyptian General Petroleum Corporation and IEOC company for oil and gas exploration in the West Razak Development Concession Area in Western desert with investments worth $34m, allocating $5m for drilling 13 new wells. 


He continued that the third agreement was signed between the Egyptian General Petroleum Corporation and Merlon El Fayum Company with minimum investments of about $36m, allocating $2.3m for drilling eight new wells.

Concerning the fourth agreement, the Minister said that it is signed between Ganoub El Wadi Petroleum Holding Co. pacific oil and gas, and ZIM Ningbo (ZNB) for oil and gas exploration

in the south-eastern concession area of ​​Ras Al-Ush in the Gulf of Suez with a minimum investment of about $68m, allocating $2.3bn for drilling five new wells.

He assured the importance of the sustainability of the petroleum sector in signing new petroleum agreements, describing them as the main pillar and cornerstone on which various petroleum activities are based on.

El Molla added that the oil sector contributes to strengthening and maximising the production of Egypt’s oil and gas, mentioning that the oil sector is considered as one of the important pillars in attracting foreign investments and supporting the national economy.


The four new deals will increase the number of signed oil agreements to reach 103

since the 30 June revolution.

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