CAIRO: Industry insiders at the fifth annual InterGas conference Wednesday expected a growth in demand for gas and highlighted the potential for investments in this sector in Egypt, underlining the need to speed up research and development in the field.
“Growth in gas demand has averaged 2.4 percent per year since 1995.
Although it has been interrupted by the financial crisis, this trend should continue and we can expect to see increasing demand for energy and the continued substitution of gas for oil in the coming years, StatoilHydro’s Vice President for Natural Gas Philippe Mathieu said.
International and local experts shared insights into their respective fields during the second day of the InterGas Conference and Exhibition in Cairo.
The day’s agenda featured a set of lectures dealing with the upstream aspect of the oil and gas industry along with a simultaneous schedule of presentations on the downstream segment of the sector.
Katan Hirachand, director of energy project finance at Societe Generale, chaired the session on Egypt’s gas industry, which featured the insights of experts from EGAS as well as a presentation by Mathieu.
Mathieu discussed the growing international demand for gas and the strong prospects for further development in Egypt’s gas sector.
Mathieu also discussed the role Egypt could play as an international leader in the natural gas industry due to its growing reserves and production capacity, significant domestic market growth, and plans to expand exports.
“Egypt’s Nile Delta and Mediterranean offer attractive opportunities for developing new reserves of natural gas. Despite some challenges such as variable pricing and fuel subsidies, Egypt remains an exciting market for international oil companies looking to invest in the gas industry and I think it will become an international leader in the industry, Mathieu said.
Atef Abd El Hady, the assistant vice chairman for production at EGAS, gave an extensive overview of the company’s activities and prospects for growth in the future. He identified several major advancements that have contributed to an increase in reserves in recent years.
“By introducing new technology, expanding drilling into deeper waters, and undertaking detailed engineering studies of new potential areas we have increased reserves and potential for growth, he said.
A number of local and international experts were featured in the day’s sessions, where attending professionals had the opportunity to pose questions about the various issues raised during the presentations.
Wednesday’s afternoon agenda featured a panel on health and safety in the industry and a presentation entitled “Unlocking More Reserves Through Cutting Edge Technologies on the upstream track, and talks on Egypt’s gas industry and the state of oil refineries in the MENA region on the downstream schedule.
The session on technology in the oil and gas industry was chaired by Ismail Mahgoub, chairman and managing director of the Agiba Petroleum Company, and featured presentations by Graham Freeth, senior project manager at JP Kenny, Arshad Waheed, Halliburton’s regional technology manager for Africa, and Stephen J. Pharez, vice president of technical marketing at Petroleum Geo-Services.
Freeth kicked off the session with an interesting look at new technological developments in onshore pipelines. He explained how the development of remote wells has demanded parallel advancement in pipeline technology to cut costs for consumers.
“In order to cut costs and improve efficiency, we applied lessons from work on offshore pipelines to onshore projects, where the essential method of construction had not changed for decades and costs were very high. We looked at different aspects of the construction process and introduced new operating procedures and technology with good results, he explained.
Arshad Waheed of Halliburton also stressed the changing nature of the industry and the reality that wells are becoming increasingly difficult to access and therefore will require superior technology to allow them to come to market.
“The next trillion barrels of oil will be harder to access, and will come from unconventional wells that present unique challenges. Climate change and global infrastructure will also be concerns into the future. With the right technology we hope to turn these unconventional resources into conventional reserves, he said.
The final speaker, Stephen J. Pharez, spoke about the need for more investment in research and development in the industry in order to bring new technologies to the market in a timely manner.
“Compared to other industries, the oil and gas industry is slow in developing new technology, averaging 30 years from the conception of the idea to its entrance into the market. This needs to be improved, because only those with the right technology can contribute to unlock future reserves, he said.
The second day at InterGas V provided an active forum for experts and professionals to exchange ideas and delve deeper into current issues in the field.
Day three featured a round of technical sessions and paper presentations.
