Egypt depends on various energy sources such as electricity, petroleum and natural gas, in addition to the new and renewable energy represented in the solar and wind energy. The state had adopted plans to establish electronuclear stations that produce electricity through nuclear means.

The participants increased to 23 million at the end of 2007. About 37936 villages and residential compounds were lighted during 2007. The individual's share of electricity increased to reach 1575 KW during 2007. Generating capacity reached 22605 MW at the end of 2007. 

 1- Electricity Sector
Energy is a mainstay of socio-economic development processes. Egypt has used electricity for lightning purposes since the beginning of the 20th century. Egypt started generating electricity from hydraulic sources where Aswan Reservoir Station was established in 1960 at a capacity of 340 MW. and High Dam Station in 1968 with a capacity of 2100 MW. This source of energy contributed in making a great industrial up raise and in lighting a great part of the Egyptian rural area during this period.

In 1985, there was an expansion in hydraulic power generation stations, therefore, Aswan Reservoir Station (2) was built, in addition to Esna and Naga' Hammadi Stations. As well, Naga' Hammadi Barrage electricity power generation is under construction at a capacity of 64 MW in 2005/06 and completion of renewing the turbins of the High Dam Station is underway. Hydraulic Power Plants constitute about 18 percent of the total consumed electric power in Egypt.

As for thermal power that uses oil and natural gas, 27 thermal plants were established during the past two decades. An expansion in using natural gases in electricity generating stations was completed.

The natural gas rate used for the stations joined to the natural gas grid reached 85.2 percent while it reached 80 percent of the consumed total fuel.

The year 2007 witnessed the President's inauguration of the second stage of Electricity Generation Station at the North of Cairo by a capacity of 750 MW, in addition to connecting electricity to all the factories, schools and educational institutions in all the governorates, as well as the hotels, touristic residences and slum areas.

Electrical Coverage
Electrical energy has been provided for around 99.3 % of Egypt's population, representing a positive sign for the welfare of the Egyptian citizen due to electricity relation to all development components in all walks of life. This could be clarified in the following table that represents the extension of the electricity network in Egypt during 2006/07.

The following digital indicators and statistical drawings show the increasing positive results realized by the electricity sector in generating and distributing electricity in the light of the growing number of subscribers. The Ministry of Electricity's statistics indicate that the per capita average share of electricity amounts to 1575 kilowatt/hour annually.

Generating Capacities
By the end of 2006/07, generating capacities had reached around 22,025 MW, with an annual increase of about 1475 MW. This is done through adding 500 MW in al-Noubareya, Talkha and al-Koraimat electricity generation stations and 25 MW in al-Z'afarana wind station, plus lifting a unit of about 50 MW from al-Mahmoudeya electricity generating station.

The total generated electricity during February, 2008 amounted to about 9302 million K.W.Y, scoring a rise of 10.2% from its level during the same month of the previous year.

Besides, the total uses of electricity during February, 2008 amounted to about 8225 million K.W.Y, by an increase of about 10.2% from its level during the same month of the previous year.

The following table clarifies the total generated energy and the volume of its uses during February, 2007 and February, 2008:

(Million K.W.Y)

The source: Electricity and Energy Ministry

New and Renewable Energy Sources:

Energy policy in Egypt during the current stage aims at preserving the coming generation right to the traditional depletable energy sources and making the best use of various energy alternatives through giving due attention to using new and renewable energy sources to produce clean energy.

Solar Energy
Solar energy represents a promising alternative source in Egypt. Solar radiance hours in areas ideal for using solar energy in Egypt range between 2300 to 4000 hours/year. A solar energy generator station was built at al-Kuraimat, south of Cairo at a capacity of 150 MW. A lighting project for 5 villages in remote areas is under construction by using solar energy.

In addition, the procedures of implementing the first thermal solar station with a capacity of 150 m in al-Kuraimat at a total cost of US Dollar 147 million will be completed. It is the first station in the Middle East and ranks fourth internationally. This station depends on using the natural gas at night as a fuel to continue operating the station all the day. 

Wind Energy

 

Wind represents a favourable source for producing energy through the areas of Suez Gulf, Red Sea coast between Ra's Ghareb and Safaga and east of Owainat as these areas are characterized by a wind blow at a relatively constant velocity.

Average wind velocity in these areas reaches 10m/sec. In 2005/06, 71 turbine stations at a capacity of 60 MW were established and the sixth phase of electricity generating station from wind energy at a capacity of 85 MW was completed. The seventh and eighth phase at capacities of 120 MW and 80 MW respectively are under construction, in addition to establishing new wind stations at a capacity of 420 MW. The capacity till 2010 will reach 850 MW and represent 3% of demand on electric energy in that year.

Wind Atlas was issued by which Egypt ranked 30th on the world level in that concern. So, 3 wind-power electric generator stations were erected in az-Za'afarana, Az-Zait mountain and Sharm el-Sheikh.

Organic Energy

Animals' and Plants' wastes in Egypt are available by big quantities which are considered as a good source for natural gas in the organic gas and some other gases such as the Ethanol and Methanol.

Generated Energy

Generated energy reached about 107.5 billion KW annually, 94 billion KW annually of it is generated from the thermal stations, 12.6 billion KW annually from the water stations, and 0.5 billion KW annually from wind stations.

Electricity is distributed on the different sectors by different percentages, as industry sector gains 35.5%, public utilities and government gains 17.5%, commercial sector gains 6.3% and the rest are for the other sectors such as agriculture and house consumption.


Nuclear Energy… a new hope for Egypt

Egypt is considered one of the first countries that used peaceful nuclear energy in the region where there were many attempts through establishing the Nuclear Energy Committee in 1955 and the Nuclear Energy Institution in 1957.

The first nuclear reactor in Egypt was operated in 1960 in Anshas for the purpose of making nuclear research and producing radioactive isotopes as well as the search for petroleum in wells.

Since 2006, Egypt started to establish stations for electricity generation from nuclear energy, especially with the existence of previous types of uses such as station of treating liquid, medium and low radioactivity wastes in 1994, nuclear fuel plant, environmental samples bank in 2000 and laboratory of quality control on radioisotopes in 2001.

At the end of October, 2007, President Hosni Mubarak announced Egypt's entrance in the era of peaceful nuclear energy through establishing nuclear stations for generating electricity.

In the Field of the Electrical Linkage between the Arab Mashreq (Orient) and Maghreb (Oxidant)
Ministry of Electricity paid due attention to linking the Egyptian electrical network with the Arab and African ones. During the fiscal year 2006/07, the net exchange of the national electricity network between Egypt on the one hand and Jordan, Libya and Syria on the other, reached around 354 million KW/h according to world prices, in addition to providing the Palestinian Authority with a capacity of 17 MW on the medium voltage.

- A feasibility study is currently under review to link the Egyptian electricity network with the Saudi one.

Investments and Production

Total implemented investments in the electricity sector of 2005/06 reached about LE 5.813 billion to provide electric energy for about 99 percent of population. The amount of electric generation capacity by the and of 2005/06 reached about 20308 MW. The total amount of generated power reached about 107.5 billion kw/h including 94.4 billion kw/h from thermal plants, 12.6 billion kw/h from hydraulic plants and 0.5 billion kw/h from wind plants.

Consumed Energy
Quantity of consumed electric power in 2005/06 reached about 92.9 billion kw/h.

The lengths of electricity lines increased to reach 391,000 km in 2005/06.
Electricity sector succeeded to link the unified electric grid in Egypt with Arab and African Countries' grids and hence with European Countries.

The most important Egyptian electric linkage projects are the seventh linkage project including Egypt, Jordan, Iraq, Lebanon, Libya, Syria and Turkey. In 2005/06 the exchange of security reserve between Egypt and linkage countries (Jordan, Libya and Syria reached about 766 million kw/h at a total value of US Dollar 57.5 million).

- A study to rise the linkage voltage from 220 kv to 400/500 kv was concluded between Egypt, Libya, Tunsia, Algeria and Morocco in the framework of technical cooperation between Egypt and Arab Moroccan Countries to increase the transferred energy among these countries.

- A consultant contract was signed to study the Egyptian/Saudi electrical linkage and participate in the attempts of operating the Libyan/Tunisian linkage line to complete the linkage circle between Arab Morocaan Countries and Europe in addition to electrical linkage programmes with Sudan, Ethiopia and Nile Basin Countries.

Energy and Environment

Electricity sector applies a chain of procedures with the objective of rationalizing electricity and protecting environment through raising the awareness of electric energy consumers in cooperation with the Ministry of Industry. The ideal standards were applied for energy efficiency machine and air condition.

- Applying engineering and technological systems to reduce pollution resulting from exhausts of electricity generating plants, in addition to applying the programmes of air and water quality surrounding electric power plants.
- Implementing the project of improving energy efficiency and reducing carbon dioxide emission agent at a total cost of US Dollar 5.9 million.
The project includes three fields:
- Reduce the wastes in the unified electric grid.
- Support and promote the activity of improving the efficiency of using energy.
- Common generation projects for electricity and thermal energy.

Second: Petroleum Sector
Petroleum industry in Egypt has historical roots since the Pharaohs period, as there are paintings on the temples' walls clarifying that the Pharaohs used crude oil as a fuel to light the oil lamp.

Nevertheless, the first geological scan in Egypt didn't take place except in the 19th century by a French marine officer in 1835. In 1886, the Egyptian government excavated the first oil well in the Eastern Desert. Concerning the natural gas, its first discovery in Egypt was by the Egyptian-World Company for Petroleum in Abu-Madi region in 1969.

In the 1950s, Egypt limited the production and balance of crude oil reserves. In 1956, the General Authority for Petroleum was established in the framework of paying due attention to developing its resources of petroleum. In March 1973, the first Petroleum Ministry was established as an independent ministry to organize petroleum industry in Egypt.

Since 1981, Petroleum became one of the main bases of economy, in addition to being an important source of foreign currency.

Petroleum sector represents a fundamental mainstay in Egyptian economy as it comes on top of Egyptian exports. Petroleum secures about 92 percent of primary power needs in Egypt. Petroleum sector achieved tangible achievements over the past few years that reflected on the performance sector rates either in the field of production, research, prospecting or exportation.

New Discoveries
The year 2007 witnessed the announcement of discovering 6 new petroleum wells in the regions of Suez Canal, Western Desert, Mediterranean Sea and Eastern Desert which add 140 million petroleum barrels to the Egyptian gas reserve.

The exerted efforts contributed to the field of research and discovery in achieving about 648 petroleum and gas discoveries during the past 25 years including 294 discoveries during the period 1998/99 and 2005/06.

2005/06 witnessed 42 discoveries including 22 for crude oil and 20 for natural gas. These discoveries contributed in increasing crude oil, natural gas and condensated reserves to reach 15.8 billion.

The past 5 years witnessed the signing of 99 petroleum agreements that represent the cornerstone of the activities of prospection and exploitation during the coming decade with a total cost of more than US Dollar 3 billion.

This period witnessed the first discovery of crude oil in Mediterranean deep water, in addition to the exploration of crude oil in Delta for the first time, which reflects the future horizons for increasing crude oil and natural gas reserves.

Production main areas

The Oil Sector managed to add 530 million barrels, thus the total reserve of crude oil hit 4 billion barrels thanks to crude oil prospection in 2006/2007. The natural gas reserve hit 73, 3 trillion cubic meters where new reserves which hit 6,2 trillion cubic meters have been added this year.

The year 2008 witnessed an increase in the production rate of crude oil, condensates and butane as production volume hit about 2916 thousand tons in January, 2008, while the production volume in January, 2007 hit about 2783 thousand tons.

This is revealed through the following table:

The source: Petroleum Ministry

The year 2007 witnessed achieving a high rate in the production of crude oil and natural gas which hit 73, 3 million tonnes. This is besides starting the implementation of an urgent program to develop the new prospecting fields in the Gulf of Suez and the Western Desert to increase production to 100,000 barrels per day. In addition, 3 wells were dug in Upper Egypt and 22 oil agreements were signed.

The year 2005/06 witnessed the highest production achieved in the history of petroleum sector. Total production of crude oil, condensates, liquified gas and natural gas reached about 73.67 million ton including about 36.67 million ton from crude oil, condensates and butane gas and about 37 million ton from natural gas.

Petroleum production is concentrated in five main areas; Suez Gulf which produces 43 percent of the total production of crude oil and 8 percent of gas production, Eastern Desert which produces 8 percent of crude oil, Western Desert which produces 21 percent of oil and 36 percent of gas, the Mediterranean Sea whose production reaches 6 percent of oil and 59 percent of gas, Sinai area which produces 12 percent of oil and 1 percent of gas.

Petroleum the most attracting sector for foreign investments

Petroleum sector succeeded in holding 77 petroleum agreements during the past three years reached about US Dollar 3.5 billion, within the framework of the petroleum sector keenness on developing prospecting for petroleum and exploitation agreements in order to support and increase petroleum wealth to provide the needs of the coming generations from energy powers and achieve self-sufficiency of petroleum production for domestic market and export the surplus to increase export revenue with hard currencies.

The foreign investment in petroleum sector increased to about 67.6% from the total direct foreign investments in 2005/06. The implemented investments in the first six months of the year reached about US Dollar 1854.1 million.
The amount of targeted investments of petroleum, gas and petroleum products in 2006/07 reached about LE 16.6 billion representing about 12.3% of total investments where LE 3.7 billion for crude oil, LE 10.2 billion for natural gases and about LE 2.7 billion for petroleum products.

Petroleum Exports

The year 2006-2007 witnessed providing $ 4031 million owing to modifying gas price to be in line with the oil agreements. The surplus since putting into force this new system hit $ 10, 6 billion which the Oil Sector should have paid to the foreign partners in case of not modifying oil agreements in light of the high prices of crude oil. The exports of raw oil and petrochemical products and natural gas in 2006/2007 hit $ 10, 1 billion, including the exports of the foreign partner.

Within the framework of preserving Egypt's wealth of petroleum, petroleum sector followed a policy for rationalizing crude oil production and expanded national gas production after increasing the discovered gas value in Egypt during the past six years that reached about 5 trillion feet annually. So proven reserves of natural gas reached about 67 trillion feet in 2006 against 36 trillion feet3 in 1999. Total exports of crude oil, natural gas, petroleum products and petrochemicals reached about 401 million equivalent ton during 2005/06. The exports value of petroleum sector rose from US Dollar 1 billion in 1999 to US Dollar 11.5 billion in 2005/06. It is expected to reach US Dollar 12 billion in 2006/07.

Egypt succeeded in amending the natural gas price in the petroleum agreements signed with foreign partner since June 2000.

This contributed to providing Egypt with about US Dollar 8 billion till now, including US Dollar 4121 million in 2005/06. Egypt ranks seventh in producing natural gas worldwide on the natural gas exportation map. In July 2003, Egypt started to export gas through the Arab gas pipeline (el-Arish-Taba-A'qaba). In 2005, Egypt accessed the countries that exporting liquefied gas.

Our exports of crude oil and petroleum products only hit about $ 219.4 million in January, 2007, and $ 440 million in January, 2008 which reflects a notable increase in the value of these exports.

The source: Petroleum Ministry

Domestic Production

The oil and mineral wealth sector achieved in 2007 a leap which positively contributed to the growth of the Egyptian economy, particularly as regards providing the needs of local consumption of oil products, petrochemical substances and natural gas. This is besides realizing the highest rate of oil wealth reserves and luring more foreign investments and intensifying oil prospecting operations and supplying Upper Egypt's governorates with natural gas, let alone producing the first gold bar in Egypt since more than 50 years.

In the year 2007, the needs of the local market of oil products and natural gas were provided at a cost of $ 22 billion where the State subsidized this sector with LE 43 billion.

The constant increase of domestic demand on petroleum products and natural gas is considered the most important challenge that faces oil and gas industry in Egypt. Consumption volume increased from about 30 million ton in 1999 to 52 million ton in 2005/06. It is expected to reach 53 million ton in 2006/07.

The value of domestic market needs of petroleum products and gas during 1998/99-2005/06 reached about US dollar 77 billion with international prices. Petroleum sector has provided LE 138 billion of its interests to cover the direct support value of petroleum products and natural gas including LE 42 billion; the support value of this year.

Petroleum sector seeks to maximize the use of natural gas in domestic consumption. So, natural gas reached about 2.3 million populated unit till June 2006, in addition to converting about 70,000 cars to use natural gas and establish 103 gas station. The lengths of natural gas networks reached about 16,000 km.

The consumption rates of natural gas witnessed an unprecedented increase as it reached about 2010 million feet2 daily in 2000/01, at an increase of about 50 percent during six years. Egypt ranks first in gas consumption in Africa. Egypt has begun a national plan to provide 6 million populated units with natural gas, 1000 industrial buildings all over Egypt during the coming six years with investments of LE 30 billion.

By considering the volume of local consumption of petroleum products only which hit 2420 thousand tons in January, 2008, we will find a notable increase compared to the consumption volume in January, 2007 which hit 2320 thousand tons.

This is revealed in the following table:

The source: Petroleum Ministry

Petroleum Industries Development
Petroleum industries succeeded to achieve a wide leap over the past years due to the presence of national integrated industries in fields of exploration, production, refining, transportation, distribution and exportation that encourage the greatest international companies to invest in petroleum sector, natural gas and petrochemicals. Egypt embarked upon new fields as natural gas liquefaction and exportation projects as well as liquefied propane and polyethylene among other production projects.

Petroleum Refining Industry
There are nine refineries in Egypt, their productive power reach about 35 million ton annually. Crude transmission networks lengths reach 4600 km. The estimated investments for petroleum refinery are about LE 2695.5 million in 2006/07 plan.

Natural Gas
In the framework of the increasing interest in the field of natural oil, being a pivotal source for future energy, the petroleum sector worked hard on increasing the amount, production and usages of the natural gas reserve in the domestic market, in addition to starting a number of mega projects to upgrade the natural oil infrastructure.

The asserted reserve of natural gas reached around 68.2 trillion cubic feet in 2006/07. Indicators refer that, in 2006/07, production will reach 41 million tons equivalent and the domestic consumption will reach 29.6 million tons.

- In 2006/07, the petroleum sector started to complete the national plan to extend the natural gas for 6 million housing units and 1000 industrial establishments in all governorates, especially in Upper Egypt with total investments of around LE 30 billion within 6 years.
- A number of 15 centres for converting cars to work with natural gas have been established. Moreover, Egypt was listed among the top 10 states that use gas as car fuel.
- Shoqair/Hurghada gas line to feed Hurghada and Safaga cities with gas is under implementation. It is extended to houses, commercial units, hotels and electricity stations and is expected to be completed during 2007.
- The third phase of the Arab gas pipeline is under implementation. It extends from al-Rehab Area, north of Jordan to the Syrian borders and a number of other Arab states.


Projects of Gas Liquefaction
Petroleum sector succeeded in attracting foreign investments to participate in implementing giant projects of gas liquefaction and exportation which are:

- Natural gas liquefaction plant placed in the free zone in Damietta is considered the greatest one in the world in terms of design and total power that reaches 7.5 billion m3 of natural gas annually. This amount is enough to produce 4.8 million ton of liquefied natural gas. The project's investments reach about US Dollar 1.3 billion and is implemented by a Spanish-Egyptian company.
- Edkos' Gas liquefaction compound project, including two units for gas liquefaction with production power 10 billion m3 annually reach US Dollar 1400 million. An English, Malaysian and French Companies Contribute to its implementing.
- The United Company for Natural Gas Directives established in Port Said an “Egyptian Joint Stock Company” operating with Free zones system with a capital of US Dollar 4.2 million. The factory of separating directives was established on an area of 115 feddans. The annual production rate of the factory reached about 280,000 tons of propane, 330,000 tons of butane gas and a million barrels of condensates.

The export started from March 2004.
Till June 2006, 35 propame Cargo was exported.

The following table clarifies the change rate in natural gas production, its consumption and its exports during January, December, 2007, and January, 2008:

The source: Petroleum Ministry

Petrochemical Industries
The year 2007 witnessed the announcement of implementing 8 projects with investments of LE 6 billion to manufacture petroleum pumps, land petroleum diggers, petrochemicals and extending natural gas networks.

Petrochemical industry is considered one of the strategic industries that many complementary industries in other sectors are based on.
Since the 1980s, Egypt embarked upon petrochemical industry by establishing petrochemical compound in Alexandria.
A long term plan has been implemented to establish 24 petrochemical projects with investments of US Dollar 10 billion contributing to producing 15 million ton petrochemical products annually.
Its value is estimated at about US 7 Dollar billion. These projects provide about 100,000 job opportunities directly and indirectly.

The Ministry of Petroleum established the Egyptian Petrochemical Holding Company to implement the petrochemicals national plan. The company succeeded in attracting international investments to participate in implementing phase I that include the establishment of 8 giant projects with investments of US Dollar 5.3 billion. Latest years witnessed the development of Egyptian exports of propane, polypropylene and alkyl-benzene in addition to exporting polyethylene.

Giant projects of petroleum sector Abroad
During the latest years, petroleum companies succeeded to expand its activities abroad and increased its share in the markets of neighbouring countries. It gained many international tenders to implement giant projects in Arab countries which are Saudi Arabia, Kuwait, Qatar, Syria, Jordan, Libya, Sudan, Yemen and Algeria, in addition to Angola.
During the past 5 years, business values of the Egyptian petroleum companies in these countries reached about US Dollar 2.4 billion.

The year 2006 witnessed works that reached about LE 9.2 billion as about 67% of the total implemented works during the past 5 years.
The contract to develop Al-Kafigi field in the neutral zone project between Saudi Arabia and Kuwait is considered the greatest project for petroleum sector outside Egypt. The contract value is US Dollar 722 million.