Egypt State Information Service

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.

On October 29, 2007, President Mubarak declared, in an address to the nation, that Egypt had entered the age of the peaceful uses of nuclear power through establishing many nuclear stations for providing electricity. He also issued a presidential decree on re-formulating the Supreme Council for Peaceful Uses of Nuclear Energy and stressed that by 2020, 20 % of Egypt's needs of energy will be provided through the renewable energy projects.

Electricity represents the main artery that pushes the development wheel forward in all walks of life. It is also the main tool for raising the standard of living. Egypt is one of the first countries to use electricity since 1893 through establishing Diesel units in Cairo, Alexandria and Ismailia, but it was only confined to lightening. Then, it was used in agriculture and industry in 1930.

At the early 1960s, Egypt started generating electricity from hydraulic sources, so Aswan Reservoir Station was established in 1960 with an electric power of 340 MW. Moreover, the High Dam had greatly contributed to providing an important source for energy when the High Dam Station was operated in 1968 with a capacity of 2100 MW. This source of energy contributed in making a great industrial rise and providing a good part of the Egyptian needs of power, thus contributing to realizing a huge social leap. With the rise in electricity consumption rates, number of hydraulic electricity stations increased, Aswan Dam (2) was established in 1985, in addition to Isna Barrage and Naga Hammadi Station.

Egypt had also witnessed expansions in establishing oil and natural gas thermal stations. During the last two decades, more than 27 thermal plants were established, in addition to the expansion in using natural gas in the electricity generating stations which consume around 64 % of the total natural gas consumption in Egypt.

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.

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 amount of energy used in all purposes reached about 98.859 billion KW/h. The industrial consumption share reached 34.592 billion KW/h, the agricultural share is 3.952 billion KW/h and the household usages 36.565 billion KW/h.

The amount of the annual generated electricity energy reached around 114.349 billion KW, including 100.808 billion KW generated from thermal sources, 12.925 billion KW from hydraulic sources and 0.616 billion KW from wind stations.

On June 30, 2007, capacity of high and extra high-tension stations has reached 80570 MV Ampere as 2013.2 MV ampere was added in 2006/07 as follows:

- Around 25 MW from the sixth phase of Az-Z'afarana wind station has been operated with a capacity of 85 MW, thus, the total generating power produced by wind stations reached 230 MW.

The first thermal solar station with a capacity of 140 MW in al-Kuraimat is under construction. The solar component in this station reaches around 20 MW with a total cost of $ 125 million.

- Naga' Hammadi Electricity Generation hydraulic stations are under construction with a total capacity of 64 MW.

- Units 3 and 4 of the High Dam electricity generation stations have been operated with the aim of extending the expiry date of the stations for more 40 years.

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 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.

As of 2006, Egypt had broken this barrier and launched to establish stations for generating electricity from nuclear power, especially that it has previous models in this vein, such as the Liquid and Radioactive Waste Treatment Station in 1994, the Nuclear Fuel Plant, the Environmental Bank in 2000 and the Radioactive Isotopes Laboratory in 2001, in addition to various nuclear technology vital projects.

In October 2007, President Mubarak declared Egypt's entrance to the age of the peaceful uses of nuclear power 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.

The electricity and energy sector had applied a series of procedures to preserve the environment and eliminate global warming, salient of such procedures are the following:

- Replace the liquid fuel (oil fuel- solar) with the natural gas in the electricity generation stations

- Expand the usage of renewable energy to produce electricity (wind – solar – hydraulic).

- Improving the efficiency of supplying electrical energy through raising the efficiency of the generating system and reducing the loss in the electrical networks.

The electricity and energy sector pays due attention to providing the electrical feed to all the Egyptians and to developing the service so as to promote the standard of living and welfare of the Egyptians. Salient achievements are as follows:

The electrical circuit has been extended to around 356,000 subscribers in the fiscal year 2006/07, thus, the number of subscribers reached around 449,000.

- A plan for replacing the bare cables with the isolated ones so as to avoid the fires resulting from the bare wires, especially in rural areas, was applied. This plan aims at raising the quality of the electrical feed and reducing the periods of the electricity breakdown.

- Around 43.7 km of isolated wires were constructed, replaced and renewed in 2006/07. Thus, around 247,300 km of cables isolated with the low-tension network have been constructed, replaced and rejuvenated. Such cables represent around 45.1 % of the total components of the low-tension network aerial cables. This was done without adding any further burdens on the citizens.

Promoting the Quality and Efficiency of the Services Offered to the Citizens:

- A number of 15 service centres in cities and villages have been established, thus, the number of service centres reached 1253.

- Getting the clients acquainted with the needed instruments and procedures through clear instruction sheets through the official website of the electricity distribution companies which offer many services.

The electrical energy plans helped realize the quality of electrical feeding in the distribution companies so as to improve the quality offered to subscribers, addressing the violations on electricity networks and not infringing the first categories of electricity prices that affect the low-income brackets.

Objectives of the Electricity Sector for the Sixth Plan and 1st Year 2007/08:

- Realizing a real growth rate for the domestic product of the electricity sector of about 9.1 % annually during the plan and 7.1 % in the first year.

- Adding around 8547 MW to the generation stations annually, distributed as shown in the following figure, including 964 MW during the first year.

- Expanding the exploitation of the renewable generation sources to reach 12 % of the total additional capacities. This is done to distribute the energy sources and to enhance the independence on the eco-friendly renewable energies instead of the traditional sources that mainly depend on thermal generation.

The following figure shows the targeted electrical energy sources in the plan "Megawatt Per Unit"

The following figure shows the relative importance of the generation sources during the sixth plan:

- Adding converter stations on various tensions with a total capacity of 16950 MV Amber.

The petroleum sector is one of the most important state economic sectors and a major source of primitive energy in Egypt as it covers more than 90 % of the domestic needs and tops the Egyptian exports list, in addition to being an important source of foreign currency.

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 1957, the first national company for petroleum prospection and production was established and the petroleum industry started in Egypt. In 1972, the first independent ministry of petroleum was established and effectively contributed to developing the petroleum wealth in Egypt.

Such strategies and policies have produced many positive results, making Egypt a pioneering country as to petroleum prospection, attraction of worldwide investments and implementation of mega projects.

The petroleum sector succeeded in attracting further foreign investments to add new petroleum and natural gas reserves so as to address the needs of domestic consumption, provide suitable revenues of foreign currency and realize an added value for all state sectors in all fields.

Moreover, implemented investments in the petroleum and natural gas sector during 2006/07 reached around LE 16.6 billion (expected), representing around 12.3 % of total pubic investment, distributed by LE 3.7 billion for crude petroleum activity, around LE 1.2 billion for natural gases and around LE 2.7 billion for the other petroleum products.

The following digital results and statistics point to positive results in various petroleum sector pivots in June, 2007

During the past 15 years, Egypt occupied the first rank among the OPEC members as to petroleum prospection operations. Year 2005/06 witnessed 42 discoveries including 22 for crude oil, 20 for natural gas including 6 in the Western Desert and 1 in Matrouh, in addition to a new natural gas discovery in the Mediterranean Sea deep waters, thus reflecting new future horizons to increase the crude oil and natural gas reserves.

The petroleum sector has succeeded in realizing the production level of the crude oil, condensates, liquefied gas and natural gas from 70.9 million tons in 2005/06 to around 73 million equivalent tons in 2006/07, including 36.6 million equivalent tons of crude oil and around 38.4 million tons of natural gases. Amount of domestic petroleum and gas consumption in 2006/07 soared to 36.6 million equivalent tons.

Value of the gross domestic product for the petroleum and natural gas sector at current prices increased to reach around LE 112.535 billion in 2006/07, including LE 48.6 billion for petroleum, LE 62.8 billion for natural gas and LE 1.03 billion for other prospections.

Value of gross domestic product for petroleum, natural gas and other prospections at current prices soared to reach LE 123.849 billion in 2006/07, including LE 53.4 billion for petroleum, LE 68.7 billion for natural gas and LE 1.6 billion for other prospections.

The following statistical figure shows the total production of crude oil, condensates, butane and natural gas (2004/05-2005/06)

As results indicate, value of the petroleum sector exports of crude oil, petroleum products, petrochemicals, liquefied gas and its derivatives have increased from about $ 10.6 billion in 2005/06, to $ 11.5 billion in 2006/07. Egypt is still occupying the 7th rank worldwide as to exporting natural gas.

A number of 21 petroleum, gas and gold excavation agreements have been signed in May 2007 with investments estimated at $ 1.5 billion, including 9 agreements for the Egyptian Holding Company for Gas, 4 for the Egyptian General Authority for Petroleum, 2 for the South Valley Holding Company for Petroleum and 6 for the Egyptian General Authority for Mineral Resources.

The petroleum sector has proved its success in the field of domestic industrialization as the Suez City has witnessed the implementation of a number of new projects that aim at entrenching domestic industrialization, establishing an advanced industrial basis, rationalizing expenditure and maximizing the foreign currency surplus. The petroleum sector realized huge leaps in the fields of prospection, production, refining, transportation and distribution, thus contributing to encouraging worldwide famous companies to invest in the petroleum and natural gas and petrochemical sectors.

Moreover, Egypt entered the gas liquefaction and exportation projects and the liquefied propane and polyethylene projects.

Egypt possesses nine oil-refining laboratories distributed all over the Republic. The available refining energy for such laboratories reached around 35 million tons in 2005/06. Lengths of the crude oil transferring networks total 4600 km and investments in the fields of petroleum refining are estimated at around LE 5.2695 million in 2006/07 plan.

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 implementatoion. It extends from al-Rehab Area, north of Jordan to the Syrian borders and a number of other Arab states.

Petrochemical industry is considered one of the strategic industries that many complementary industries in other sectors are based on. Since the 1980s, Egypt has embarked upon petrochemical industry by establishing a petrochemical compound in Alexandria.

A long term plan has been implemented to establish 24 petrochemical projects with investments of $ 10 billion contributing to producing 15 million tons of petrochemical products annually. Its value is estimated at around $ 6 billion, including $ 3.5 billion as direct foreign investments.

During the period 1981-2007, further interest to realize the optimum use of the mineral wealth in Egypt and to expand in the fields of prospection, discoveries and encouraging investments was witnessed. In 2005/06, phosphate production was doubled to reach 2290,000 tons, coal production reached 1325,000 tons and aluminium production reached 247,000 tons. Moreover, contracts on selling and exporting around 260,000 tons of raw phosphate with a total value of LE 50 million were signed.

History of gold in Egypt dates back to the Pharaonic era. Pharaohs excelled in prospection for gold and the number of ancient mines in Egypt has reached around 120 sites, all located in the Eastern Desert. Gold prospection operations stopped in 1958 due to the lack of the technological capabilities. But with the state-of the-art technological means, gold prospection was resumed. Three companies are currently working in the field of gold prospections, namely:

- Al-Sokary Company with a total reserve of around 10 million ounce in April 2007 and investments of around $ 215 million.

- Hemshy Mine Company with a total production of around 30,000 ounce in 2007 according to results.

- Al-A'laqy Valley Mines Company with a total reserve of around 1.1 million tons. Furthermore, the first experimental gold ounce was produced in Egypt in 2007.

- 8 agreements for gold and metal prospection were signed with investments of $ 33 million, with Canadian, Russian, Cypriot, and Emirate Companies.

By winning various international biddings to implement mega projects in 11 countries, namely Jordan, Libya, Sudan, Saudi Arabia, Kuwait, Syria, Finland, Yemen, Lebanon, Qatar and Algeria, with a total value of around $ 1.7 billion, the Egyptian petroleum companies have succeeded, during the past years, to expand their activities abroad.