Energy is an effective mainstay of socio-economic development efforts in Egypt, given that development and efficient utilization of energy resources are a top important strategy of sustainable development.

 

This gains special importance in the coming stage where national economy is braced for a breakthrough in the face of fierce competition that has become one of the most important characteristics of global economy.

 

 

Electricity sector has recently made great progress. Since this sector is closely related to all elements of development in industry and agriculture, this progress is seen as a positive indicator of the welfare of the Egyptian citizen. Moreover, in the coming stage, all ports of Egypt will have been supplied with electric power and modernization and upgrading processes in all governorates will have been completed.

 

 

Total investments implemented in the electricity sector during the year 2002/03 reached LE 2662 million.

 

 

Total investments allocated for electricity sector under the 2003/04 plan are estimated at LE 6427.9 million, accounting for 9.2 percent of total investments, including about LE 1397.6 million for the government sector and governmental bodies and about LE 5030.3 million for the private sector.

 

 

Generated electric power rose to 88.855 billion kw/h in 2002/03. Under the 2003/04 plan, it is targeted to raise electric hydraulic, thermal and renewable-energy-generated power to 95.0 billion kw/h.

 

 

Available station-generated power showed about 118 billion kw/h in 2002/03 and is expected to reach 123 billion kw/h in 2003/04.

 

 

Consumed power in economic activities reached about 74.356 billion kw/h in 2002/03 and is expected to reach 80.35 billion kw/h in 2003/04.

 

Quantitative Targets for the Year 2003/04 Compared to the Year 2002/03*

Description	Unit	2002/03	03/04
Quantity of generated electric power	Billion kw/h	88.854	5.0
Quantity of consumed power	Billion kw/h	74.356	0.35
Quantity of available power	Billion kw/h	118	23
Number of hamlets and electric-lit communities	Hamlet	31542	1795
Average individual share of electric power	Kw/h	1350	350
Average individual share of household power consumption	Kw/h	419	444

 

 

Value of domestic production of electricity rose to about LE 10560.0 million in 2002/03 and is expected to reach about LE 11400.0 million in 2003/04 with a growth rate of about 8.0 percent and an increase rate of about 1.7 percent. Moreover, value of domestic product of electricity rose to about LE 6515.0 million in 2002/03 and is expected to reach LE 7035.0 million in 2003/04 with a growth rate of about 8.0 percent and an increase rate of about 1.8 percent.

 

 

Number of workers in the electricity sector rose to 159,700 in 2002/03 and is expected to reach 165,000 workers in 2003/04 at an increase rate of about 3.3 percent.

 

Targeted Electric Energy Uses* (million kw/h)

Uses	2002/2003		2003/2004		Growth rate%
	Quantity	Relative structure	Quantity	Relative structure
Industry	26480	35.61	28100	35.0	6.1
Agriculture and Irrigation	2886	3.88	3375	4.2	16.9
Utilities	7874	10.59	8830	11.0	12.1
Governmental bodies	4582	6.16	4595	5.7	0.3
Household	274.0	36.86	30460	37.9	11.1
Other fields	4302	5.79	4360	5.4	1.3
Exports	827.37	1.11	950	0.8	14.8
Total	74356.37	100.00	80675	100.0	8.5

 

 

In Egypt, the petroleum sector, with the petroleum products and natural gases it makes available, is the backbone of development in all fields. The strategy of this sector aims to increase petroleum and gas reserves in order to achieve self-sufficiency and to export surplus; thus generating sufficient foreign exchange revenues.

 

 

Investments by foreign and joint-venture companies operating in Egypt in the field of prospecting and development showed about LE 1,806 million in 2002. On the other hand, the number of foreign companies operating in Egypt in the field of crude oil and natural gas prospecting and exploration showed about 41, of which 12 are American, 16 European and 13 of other nationalities. This reflects how much attractive is the petroleum sector for investment by major transnational corporations, naturally as a result of the prevailing political and economic stability in the country; in addition to the absorptive capacity of the Egyptian market for mega projects.

 

 

In 2002, the petroleum public sector implemented investments of about LE 1451 million, including LE 304 million in foreign currency. These investments cover oil exploration, production, refinery, processing, transport and marketing.

 

 

In 2002, investment companies implemented investments of about LE one billion.

 

 

Total implemented investments in the field of liquefaction projects, natural gas exportation and pipe manufacturing hit about US Dollar 350 million in 2002.

 

 

The number of explorations made in 2002 reached about 35, with 22 crude oil, and 13 natural gas explorations.

 

These new explorations showed an increase in added reserve of about 1206 million barrels of crude oil, condensates and natural gases.

 

 

Proven reserves of crude oil and condensates rose from 3.6 billion barrels by the end of June 2002 to 3.78 billion barrels in mid May 2003.

 

Furthermore, proven reserves of natural gas, which are already big enough to meet 60 years' local consumption, increased from 55.9 trillion feet to 60 during the corresponding period.

 

 

In July 27, 2003, President Mubarak and King Abdullah of Jordan inaugurated the first phase of the largest strategic project for exporting Egyptian gas to Jordan and then to Syria, Lebanon and Europe.

 

The Arab gas line project is one of the most significant development projects in the Arab region as it seeks to foster the spirit of co-operation among Arab countries. It also promises to provide new job opportunities and establish a sound infrastructure for gas industry in the region.

 

Moreover, it will form the main core for a unified grid of natural gas in the Arab world. Egypt's planned revenues from the Arab gas line are estimated at about US Dollar 70 million in the first year, expected to reach US Dollar 200 million after two years, to gradually hit US Dollar 500 million in the fifth year.

 

 

-         Number of manpower in the field of crude oil reached about 21,400 workers in 2002/03.

-         Number of manpower in the field of petroleum products showed about 29,400 workers.

-         Number of manpower in the field of natural gas hit about 13,200 workers during the same period.

 

 

In 2002, the petroleum sector exports showed about 14,6 million tons valued at about US Dollar 2.6 billion. About 2 million tons of high-quality products (95:octane, gasoline and jet fuel) were exported at a value of US Dollar 460 million. Moreover, 78,000 tons of polythene were exported to 26 countries at a value of US Dollar 40 million.

 

 

-         Crude oil, condensates, and liquefied gas products in 2002 reached about 35.6 million tons, expected to rise to 38.4 million tons in 2003/04.

-         Natural gas products in 2002 reached about 20.4 million tons, expected to hit about 22.0 million tons in 2003/04