US $200M approved for energy exploration projects in Egypt

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US $200M approved for energy exploration projects in Egypt

A sum of US $200M has been approved by Egypt’s Cabinet to be used in addressing the ongoing electricity shortage crisis.

The approved commitment agreements involves the Egyptian Natural Gas Holding Company (EGAS), the Egyptian General Petroleum Corporation (EGPC), and several international and national companies.

The deals focus on exploring and exploiting natural gas and crude oil in various regions, including: North Port Fouad Offshore Area in the Mediterranean Sea, South Nour Offshore Area in the Mediterranean Sea and North El-Khatatba Onshore Area in the Nile Delta.

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Energy strategy

Additionally, the agreements involve amendments to existing commitments for oil exploration, development, and exploitation in Horus Development Area in the Western Desert and South Dabaa Development Area.

These initiatives are crucial as Egypt, a significant natural gas producer with an average annual production of around 60 billion cubic meters, still faces a shortfall compared to its annual demand of about 62 billion cubic meters.

The energy strategy in Egypt adopted by the Supreme Council of Energy in February 2008 is to increase renewable energy generation up to 20% of the total mix by 2020. The prime contributor Egypt’s electricity supply is hydropower energy, with roughly 42.2% of sustainable energy capacity, which can be connected to the Nile passing through the country. Wind and solar energy followed with close to 28.2% and 27.7% of the total capacity, respectively.