development & future of natural gas in...
TRANSCRIPT
Vice ChairmanGas & Energy Companies
GENCO GROUP
Development & FutureDevelopment & FutureDevelopment & FutureDevelopment & FutureDevelopment & FutureDevelopment & FutureDevelopment & FutureDevelopment & Future
Of Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in Egypt
Eng.Eng.Eng.Eng.Khaled Abubakr
Secretary GeneralEgyptian Gas Association
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1st gasdiscovery
1stPowercustomer
1st residentialcustomer
1st CNGvehicle
Private LDCs
1972 1975 1980 1992 1997
1st Gas ExportPipeline
2003
Egyptian Gas SectorKey Milestones
2004 2005
1st Gas Export
LNG
Private CNG
23rdWorld Gas ConferenceEgyptian Energy SectorGas Contribution in Primary Energy Consumption
20052005
Hydro
7%
Oil
63%
Gas
30%
19951995
Hydro
2%Oil
49%
Gas
49%
34 MTOE34 MTOE
55 MTOE55 MTOE
In the last 10 years, Egypt witnessed
a staggering growth of 62% in gas consumption
19751975
Hydro
10%
Oil
90%
Gas
0%
21 MTOE21 MTOE
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National Gas Grid
National Gas Grid Length 4,700 kmOverall Capacity 42.3 BCM/Year
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State Owned Co.
Public Sector
Gas Transmission
1975 1997
Phase I Phase II
Upgrade & Expansion
Oil ProductsOil Products
PipelinesPipelines
GasGas
PipelinesPipelines
State OwnedInvestment Law
GASCO
State Owned Co.Public Sector
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Gas Distribution
1979 1983 1997
Phase I Phase II Phase III
Pilot Project National ProjectDeregulation &Expansion
EPC
MonopolyState OwnedPetrogas
Foreign ContractorWilliam Press
MonopolyState OwnedEgypt Gas
MonopolyState OwnedPetrogas
7 Private Local
Distribution Companies
& Contractors
“LDC”
Operator & Distribution
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� Additional 900 000 customers connected
� 700 MM $ of Foreign & Local investment
� 16 Governorates covered by Gas networks
� 650 MM $ /Year Saved in subsidies
� Enhancing HSE
� Introducing new technologies
� Attracting the Multi-Nationals
� Provide a better quality of life for Egypt’s citizens
Egyptian Gas Distribution SectorDeregulation results in 8 years
From one state owned monopoly to 7 private local From one state owned monopoly to 7 private local LDCsLDCs
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CNG in Egypt
1992 1996 2004
First StageFirst Stage Second StageSecond Stage Third StageThird Stage
Pilot ProjectPilot ProjectCommercializationCommercialization
StartupStartupPrivatization & Privatization &
ExpansionExpansion
22
Pilot ProjectsPilot Projects
E & PE & P
MultiMulti--Nationals Co.Nationals Co.
22
StateState--owned Co.owned Co.
with participationwith participation
Of MultiOf Multi--NationalsNationals
44
New Private sectorNew Private sector
In 1992, Egypt pioneers the Middle East & Africa,In 1992, Egypt pioneers the Middle East & Africa,
by using CNG as a transportation fuel by using CNG as a transportation fuel ……
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CNG in Egypt
23rdWorld Gas ConferenceEgyptian Gas SectorConsumption Breakdown
2.2 million residential customers16,000 commercial customers
1,200 Industrial factories
95 CNG fueling stations 65,000 vehicles
28 Power stations
30 years experience in gas distribution30 years experience in gas distribution
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� Successful applications of Natural Gas
� World standards and specifications
Egypt Gas Industry
Conclusion
� Set independent regulatory body
� Implement Plan to lift oil subsidies by leveraging Natural Gas
� Enhance Country Energy efficiency
� Balance between Export and Local demand
Challenges
THANK YOU
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