Energy – Daily News Egypt https://dailynewsegypt.com Egypt’s Only Daily Independent Newspaper In English Tue, 12 Mar 2019 08:00:50 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.1 Libya’s oil production rises to 6-year high putting pressure on OPEC deal https://dailynewsegypt.com/2019/03/12/libyas-oil-production-rises-to-6-year-high-putting-pressure-on-opec-deal/ https://dailynewsegypt.com/2019/03/12/libyas-oil-production-rises-to-6-year-high-putting-pressure-on-opec-deal/#respond Tue, 12 Mar 2019 08:00:50 +0000 https://www.dailynewsegypt.com/?p=692660 Brent crude oil prices stand at $66.37 per barrel in Monday trading driven by OPEC supply cuts

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Libya’s oil output is steadily increasing in March, as the production from the country’s largest oil field El-Sharara resumed last week, lifting the North African nation’s total production to an estimated 6-year high.

El-Sharara oil field, which has a production capacity of around 315,000 barrel per day(bpd) according to the Libya’s National Oil Corporation (NOC).

Production restarted in the field after the Libyan National Army (LNA) forces swept through the south and took control of El-Sharara and Al-Feel oilfields, cementing their effective control of the country’s crude.

Since 2017, the LNA leader, Field Marshal Khalifa Haftar—who is backed by Egypt and the UAE—seized Libya’s oil crescent ports (Ras Lanuf, Al-Sidra, Zueitina, and Brega), the country’s only source of hard currency.

However, El-Sharara field’s current production stands at 183,000 bpd, and is expected to be restored to 300,000 bpd in two weeks, according to Reuters.

Libya’s total oil production currently stands at around 1.17m bpd, according to Bloomberg.

Earlier, the NOC said that the field closure led to $1.8bn losses, and that they are working to restore the 20,000 bpd production capacity that was lost due to vandalism and looting in El Sharara.

The OPEC Secretary General, Mohammad Barkindo, assured in February, that the barrel’s price will not exceed $70, until the next meeting of the OPEC members in April in order to discuss extending the production cut during 2019.

Crude oil prices stood at around $66.37 per barrel of Brent crude in Monday trading, driven by the OPEC supply cuts, as well as the trade developments between the US and China, compared to $61 per barrel in January.

In November 2016, oil-producing countries, including Russia, agreed to curb their production by 1m bpd. The agreement entered into force in early 2018 and was later extended until the end of 2018.

However, Libya was exempted from the cuts because of its internal turmoil. OPEC are scheduled to meet in April, to discuss further extension of the deal for the second half of 2019.

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Globaltronics to produce electricity metres which can be topped up via Bluetooth, mobile phones: VP for R&D https://dailynewsegypt.com/2019/03/12/globaltronics-to-produce-electricity-metres-which-can-be-topped-up-via-bluetooth-mobile-phones-vp-for-rd/ https://dailynewsegypt.com/2019/03/12/globaltronics-to-produce-electricity-metres-which-can-be-topped-up-via-bluetooth-mobile-phones-vp-for-rd/#respond Tue, 12 Mar 2019 07:30:05 +0000 https://www.dailynewsegypt.com/?p=692649 Supply, installation of smart metres to be completed before H2 of 2019

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Globaltronics is preparing to produce pre-paid electricity metres with new specifications next month.

Hany Karawia, the vice chairperson of the company for research and development (R&D), told Daily News Egypt that the company has submitted a proposal to the Egyptian Electricity Holding Company (EEHC) on the production of a pre-paid electricity metre that can be topped up via Bluetooth and mobile phones.

He added that Globaltronics has revealed a pilot application to top up the metres and link them to e-payment services and Bluetooth and was introduced in the scope of the distribution companies of north and south of Cairo. The fees for using the app are only EGP 3.

Furthermore, he explained that the EEHC decided to adopt the idea of the application and the production of Bluetooth pre-paid metres, as the company awaits the green light from the EEHC to begin mass production, which is expected within three weeks.

The advantages of the new metre include topping up the metres up to three floors away from it. The consumer can retrieve the balance information using the mobile phone.

Karawia said that Globaltronics denominates 70% of the pre-paid electricity metre market in Egypt. The company has finished supplying approximately 4.1m metres and installing them in all governorates of the country.

Moreover, the production capacity of the company’s metre factory reached 1.5m annual metre and the company aims to increase production capacity to 2.5m million metres during the current year, he said.

Additionally, he explained that Globaltronics will complete the supply and installation of its share in the pilot project of smart metres before the second half (H2) of this year.

The total share acquired by Globaltronics in cooperation with Sagimco is about 70,000 smart electricity metres in the north and south of Cairo electricity distribution companies, as part of 250,000 smart metres the EEHC aims to install this year.

Furthermore he said that the company continues to produce metres, noting that production capacity is 10,000 metres per day, including 80% local components. He pointed out that a 100% made in Egypt metre is difficult at the moment–the alternative is to assemble the components here instead.

“The EEHC has announced a plan to replace 30m electricity metres over the next 10 years, and the company will produce metres in order to meet the needs of the market, as well as export to Arab and European countries,” he said.

Moreover, Globaltronics’ strategy and development stems from its national role, the inevitability of national transformation toward smart networks, the development of smart metre infrastructure, and the development of services to the Egyptian market.

Smart metres have several advantages for the consumer and the state, such as energy conservation and eliminating the problems of misreading, he added.

The smart metre allows the subscriber to charge the card at any time from the designated charging centres and through the mobile phone before or after consumption.

The total number of metres to be installed at the North Cairo Electricity Distribution Company in Obour and Nasr City are about 53,000. Fifty thousand smart electricity metres will be installed in the South Cairo Electricity Distribution Company in the Sixth of October City and Sheikh Zayed, in addition to 39,000 metres in Alexandria and Borg El-Arab.

Moreover, 50,000 more smart metres will be installed in the 10th of Ramadan City, 30,000 in Tanta, and 28,000 in Minya and Assiut.

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ABB to expand its investments in Egypt by 40% in 2019 https://dailynewsegypt.com/2019/03/12/abb-to-expand-its-investments-in-egypt-by-40-in-2019/ https://dailynewsegypt.com/2019/03/12/abb-to-expand-its-investments-in-egypt-by-40-in-2019/#respond Tue, 12 Mar 2019 07:00:46 +0000 https://www.dailynewsegypt.com/?p=692653 Company plans investing in El-Dabaa Nuclear Power Plant, Egypt-Cyprus interconnection project, says managing director of ABB Egypt

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Swiss-Swedish ABB Group aims to achieve growth in its operations in the Egyptian market by 40% in 2019, compared to 30% in 2018.

“Over the past two months, ABB has signed contracts to supply products and equipment to the Ministry of Electricity, and is still competing in some tenders to construct transformer stations, expected to be settled before May,” the Managing Director of ABB Egypt, North and Central Africa, Nagy Grigory, told Daily News Egypt, adding that the company will present proposals for a number of projects in the upcoming period.

He noted that the energy sector is one of the most active field in the Egyptian market, witnessing mega energy production projects, of over EGP 120bn investments, besides electricity transmission and distribution projects, pointing out that there is a fierce competition between foreign companies to win the proposed tenders.

ABB is anticipating the settlement of the Saudi tender for electrical interconnection project with Egypt. The bidders reportedly include ABB, Germany’s Siemens, and State Grid Corporation of China. It also plans to present a proposal to the Ministry of Electricity to supply transmission stations for the electricity interconnection project between Egypt and Cyprus.

ABB has the ability to supply required equipment for mega national energy projects, such as El-Dabaa Nuclear Power Plant, Grigory said, adding that the company is cooperating with other Egyptian companies, such as El Sewedy Electric, Orascom, and Madkour Group.

He added that the company is implementing the regional electricity control centre in the Suez Canal area.

Strengthening electricity transmission and distribution networks is considered one of the challenges facing the electricity sector in Egypt, in order to absorb the high capacities added to the national electricity grid.

ABB is exporting 20% ​​of its products to African and Asian countries, and is working to penetrate more new markets in the coming period, according to Grigory, while 80% of the company’s production is directed to cover the needs of the local market. The local components of ABB’s products amount to 50%. The company is always working according to long-term investment plans.

He pointed out that ABB is also competing over infrastructure projects in Suez Canal development projects, along with the New Administrative Capital, Grigory said, confirming that it has won contracts to supply electricity transformers and energy solution equipment to the new capital.

ABB has contracted with the National Petroleum Company – Wattania (NPCO) to its stations with Terra 53 high-speed electric vehicle chargers to protect the environment, Grigory said, adding the company aims to install 100 electric car charging stations by the end of 2019.

Terra 53 is a 50-kilowatt dual-standard charging station, which can charge three vehicles simultaneously within 10-40 minutes according to the type of the car battery. It also withstands temperatures above 55° which makes it perfect for highway stations.

ABB also provides ABB Charger Care programme for all electric vehicle charging solutions, designed to reduce service downtime, providing a number of advantages, including proactive monitoring, preventive and corrective maintenance, and software upgrade.

Egypt aims to achieve sustainable development and increase the share of renewable energy to 22% by 2022, he said. The company seeks to be part of this plan by providing sustainable transportation means, he added.

The steps taken by the government regarding the economic and legislative reforms, notably the new Investment Law, have encouraged companies to implement more projects and inject more capital in the country, Grigory said.

ABB has opened a new headquarters in the 5th Settlement in New Cairo at a cost of EGP 150m, which reflects its confidence in the Egyptian market. Since 2011, ABB has been developing its factories, modernising its production lines, and expanding its operations. The company does not intend to enter the field of manufacturing pre-paid or smart meters as the Egyptian market is filled with companies specialised in this field, according to Grigory.

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Egypt’s gas production to increase to 7bn scf/day next June https://dailynewsegypt.com/2019/03/11/egypts-gas-production-to-increase-to-7bn-scf-day-next-june/ https://dailynewsegypt.com/2019/03/11/egypts-gas-production-to-increase-to-7bn-scf-day-next-june/#respond Mon, 11 Mar 2019 17:09:02 +0000 https://www.dailynewsegypt.com/?p=692651 New explorations have contributed to increasing production by unprecedented levels, says source

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The Ministry of Petroleum aims to increase Egypt’s natural gas production to 7bn cubic feet daily (scf/day) by June, compared to the current production of 6.8bn scf/day through increasing gas production from the Zohr field.

A source at EGAS told Daily News Egypt that the increase from Zohr to 2.6bn scf/day compared to 2.3bn scf/day now will compensate for the natural decline rates and increase the total local production.

He pointed out that new projects were connected to production, such as Zohr, Nawras, North Alexandria and 9B, and have contributed to increasing Egypt’s natural gas production.

The source added that it is targeted to increase Egypt’s natural gas production to 7.5bn scf/day in 2019/20.

The local market’s consumption of natural gas is currently dropping to 5.5bn scf/day as a result of the decrease of electricity plants consumption in winter.

Moreover, the source explained that the consumption rates of natural gas in the local market is growing according to the industrial development and urban plan and the increase in the number of cars that operate with natural gas.

The consumption of the electricity sector represents 61% of the total natural gas consumption, while the rest of the sector such as industry, household, and petroleum products consume 39%.

The source said that the local gas consumption rate would increase gradually to 7bn scf/day in the next fiscal year (FY) compared to 6.2bn scf/day this FY.

The average local market consumption of natural gas will increase to 9bn scf/day by FY 2020/21 according to the industrial development plan with the increase of the electric energy produced and delivered to homes, as well as to the largest number possible of cars operating with gas instead of petroleum products.

The Ministry of Petroleum’s plan aims to complete the implementation of Zohr, North Africa and Borollos to contribute to increasing local production and covering consumption rates with the operation of liquefaction factories through the gas comping from Cyprus and Israel.

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Petroleum Ministry entitles Cairo Arbitration Centre to solve disputes with foreign partners https://dailynewsegypt.com/2019/03/10/petroleum-ministry-entitles-cairo-arbitration-centre-to-solve-disputes-with-foreign-partners/ https://dailynewsegypt.com/2019/03/10/petroleum-ministry-entitles-cairo-arbitration-centre-to-solve-disputes-with-foreign-partners/#respond Sun, 10 Mar 2019 19:38:06 +0000 https://www.dailynewsegypt.com/?p=692483 Exploration site to be withdrawn from contractor if it fails to provide development lease application within 2 years

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The South Valley Egyptian Petroleum Holding Company (Ganope) offered its first international tender for exploration for oil and gas in 10 regions of the Red Sea, where companies will offer their bids by maximum 1 August.

The tender draft agreement, a copy of which was obtained by Daily News Egypt, Ganope has determined that in case a dispute took place with contracting parties, the foreign partner is not entitled to file any case before international arbitration, as the Cairo Arbitration Centre is the only body authorised to settle these cases.

The agreement stipulates that the period of exploration should not exceed nine years, including five years for exploration and four years for development, guaranteeing the company’s right to waive the area at any time.

The terms of the agreement included the right of the Ministry of Petroleum to withdraw the allocated area from the contractor, in case it failed to provide a plan to develop the exploration within two years from the declaration of the exploration.

The agreement specified the development lease period at 20 years, starting from the date the approval of the Minister of Petroleum, requiring the foreign partner to achieve a commercial production within four years from the exploration development date.

If the foreign partner failed to achieve commercial production after four years from the approval date of the development plan, and the Ministry of Petroleum refused to extend the period, it is entitled to withdraw the entire site from the company.

The provisions of the oil and gas exploration agreement in 10 Red Sea sites allowed the extension period for a maximum period of 30 years by obtaining the approval of the Minister of Petroleum for a period of five years.

The results of the collected geophysical data conducted in the Red Sea showed that gas discoveries estimated at more than 70% could be achieved according to the seismic survey carried out by Schlumberger company in cooperation with Ganope.

The two-dimensional seismic data collections were finalised using new techniques after the completion of the project of the seismic survey of the Egyptian Economic Waters in the Red Sea on an area extending over 10,000km at an investment cost estimated at $750m.

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EGAS granted right to issue gas import licenses to private sector: source https://dailynewsegypt.com/2019/03/09/egas-granted-right-to-issue-gas-import-licenses-to-private-sector-source/ https://dailynewsegypt.com/2019/03/09/egas-granted-right-to-issue-gas-import-licenses-to-private-sector-source/#respond Sat, 09 Mar 2019 21:30:39 +0000 https://www.dailynewsegypt.com/?p=692406 Companies stopped importing gas after Egypt’s production increased

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The law regulating natural gas market has assigned the right of issuing licenses to companies operating in the local market that want to import natural gas to the Egyptian Natural Gas Holding Company (EGAS) instead of the Gas Regulatory Authority.

A source in the petroleum sector told Daily News Egypt that private sector companies have retreated from importing gas after the increase of local production to 6.8bn cubic feet of gas per day and achieving surplus.

He added that the state has started expanding in gas export to Jordan through liquefaction vessels with plans to turn Egypt into a gas trading hub for neighbouring countries in the Mediterranean Sea.

The source pointed out that EGAS has initially approved to grant BB Energy, Taqa Arabia, and Fleet Energy licenses to import natural gas and supply the local market until the companies provide the required documents.

He said that the three companies have not yet informed EGAS of the targeted amount of gas imports and their clients in the local market.

The source noted that this initial approval to import natural gas shall be renewed every six months, however the applying companies have not taken any actual steps to obtain the final licenses.

Private sector companies which have obtained the initial approvals were Fleet Energy, headed by Essam El-Kafafy and headquartered in Panama, BB Energy, owned by a Lebanese family and headquartered in London, and Taqa Arabia, owned by Gulf funding institutions in partnership with Egyptian Qalaa Holdings.

Recently, EGAS has obtained two licenses to practice the activity of shipping and supply of natural gas to the domestic market from the Gas Regulatory Authority.

The ministry of petroleum has estimated the maximum actual gas needs of the local market to be 7bn scf/day over the upcoming fiscal year. 

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Saudi Arabia to relaunch electrical interconnection tender with Egypt in June https://dailynewsegypt.com/2019/03/09/saudi-arabia-to-relaunch-electrical-interconnection-tender-with-egypt-in-june/ https://dailynewsegypt.com/2019/03/09/saudi-arabia-to-relaunch-electrical-interconnection-tender-with-egypt-in-june/#respond Sat, 09 Mar 2019 17:40:20 +0000 https://www.dailynewsegypt.com/?p=692336 Neom project’s cost increases by $900m after alterations

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Saudi Arabia will be relaunching the tender for establishing lines and transformers of the electrical interconnection project with Egypt with new technical specifications in June after finishing the adjustment made to the electrical interconnection paths between the two countries.

Informed sources told Daily News Egypt that after the implementation of Neom project, the paths of electrical interconnection were altered, which required relaunching the tender with new specifications for the companies that have previously applied to implement the project. 

The sources added that Egypt has settled the tender for the project’s part on its land, and it is awaiting to decide the locations of the new paths on the Egyptian territories to begin the project in coordination with Saudi Arabia.

Moreover, the sources also revealed that there is an agreement between Egypt and Saudi Arabia in order to settle all the issues of the project between both countries before the end of December, given that the first quarter of 2020 will see the implementation of the project’s first phase.

Noteworthy, the project connects two electrical networks in Egypt and Saudi Arabia on a direct current of 500 kv capacity from Badr station to East Medina station, passing through Tabuk station in Saudi Arabia over a distance of 1,300 km, including 820 km in Saudi Arabia and 480 km in Egypt.

The total cost of the project was $1.6bn, however, after adjusting the interconnection paths and changing the prices, the total cost of the project would reach $2.5bn, an increase of $900m, according to the sources.

Egypt started negotiations with Saudi Arabia in 2010 to exchange energy between the two countries, however, the political events that took place in Egypt postponed the project more than once, until the negotiations resumed recently with the support of the political leadership in both countries.

In October 2018, Saudi Arabia announced a plan to establish Neom project, which runs through three countries, Saudi Arabia, Egypt, and Jordan, with investments of nearly $500bn. It is located in north west Saudi Arabia on an area of 26,500 sqkm. It overlooks the Red Sea and the Aqaba Gulf from the north and west, and the project will be focusing on nine investment sectors. The first phase is planned to be finished by 2025.

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EETC signs EGP 590m-worth contracts to replace North Cairo-Heliopolis aerial line https://dailynewsegypt.com/2019/03/06/eetc-signs-egp-590m-worth-contracts-to-replace-north-cairo-heliopolis-aerial-line/ https://dailynewsegypt.com/2019/03/06/eetc-signs-egp-590m-worth-contracts-to-replace-north-cairo-heliopolis-aerial-line/#respond Wed, 06 Mar 2019 18:13:48 +0000 https://www.dailynewsegypt.com/?p=692167 Project to be implemented by Energya-Elsewedy, Chinese-Egyptian coalitions, funded by ISDF

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The Egyptian Electricity Transmission Company (EETC) has signed two contracts to replace the north Cairo-Heliopolis aerial line with a length of 12 kilometres double circuit, and a cost estimated to be EGP 590m.

The first contract was signed with Energya’s power and telecom solutions and Energya Cables, affiliated with ElSewedy, in order to supply and install 220kV land cables with its accessories to connect part of the North Cairo power plant to the Heliopolis substation in the direction of the former in north Cairo with a length of 6 km, according to the EETC Chairperson, Sabah Mashali.

Mashali added the total cost of implementation is EGP 295m, not-including VAT, to be funded by the Informal Settlements Development Fund (ISDF) over seven months, adding that the second contract was signed with the Egyptian-Chinese Company for Ultra High Voltage Networks to supply and install 220 kV ground cables with their accessories for the second part of connecting the North Cairo power station to the Heliopolis substation, in the direction of the latter with a length of 6 kilometres.

The total value of the second contract reached EGP 294m, not-including VAT, to be funded by the ISDF over seven months.

Last March, the Ministry of Electricity signed a cooperation agreement between the ISDF and the governorates of Cairo and Qaliubiya in order to convert aerial lines into ground cables to reduce the risk at the High Dam areas at Al Salam department in Cairo and other 11 areas in eastern Shubra El Kheima district in Qaliubiya, at an estimated cost of EGP 750m.

This comes within the framework of the electricity and renewable energy sector plan to develop electricity transmission networks across the nation.

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Government considers issuance of financial guarantee for Hamrawein coal-fired electricity plant https://dailynewsegypt.com/2019/03/06/government-considers-issuance-of-financial-guarantee-for-hamrawein-coal-fired-electricity-plant/ https://dailynewsegypt.com/2019/03/06/government-considers-issuance-of-financial-guarantee-for-hamrawein-coal-fired-electricity-plant/#respond Wed, 06 Mar 2019 05:53:50 +0000 https://www.dailynewsegypt.com/?p=692036 Finance Ministry to meet with officials from CDB next month, signing will be made before mid-year

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The government is considering issuing the financial guarantees for the project of the coal-fired electricity plant in the area of Hamrawein with a capacity of 6,000MW. The project will be implemented by the Shanghai Electric-Dongfang-Hassan Allam alliance.

Government sources told Daily News Egypt that the ministry of finance will be holding a meeting next month with the Chinese Development Bank (CDB) to look into issuing the financial guarantee of the project after the bank made an offer to fund the establishment of the station for $3.7bn. The contracts will be signed by the mid of this year.

The sources added that the Shanghai Electric alliance has agreed with electricity officials on all the technical aspects of establishing the aforementioned electricity plant. What remains would be reaching an agreement on the financial sides and approving the loan which represents 70% of the total cost of implementation.

The sources explained that the financial guarantee is done through the state providing official guarantees to investors in order to ensure that the government would pay any financial obligations, which are failed to be met by a company involved in the contract. These guarantees are issued for projects that the government launched and the private sector implements.

The Shanghai Electric alliance won a contract to establish a coal-fired electricity plant in Hamrawein after making a financial offer to implement about $4.4bn to produce 6,000MW. The construction of the plant would take up to six years.

The Hamrawein plant would operate with a supercritical pressure technology, which is the latest system in the coal-fired electricity generation plants. A port will be established to receive the coal directly and leave it in closed area to store it according to the environmental requirements stipulated by the Egyptian law.

According to the agreement with the Egyptian Electricity Holding Company (EEHC), the alliance will be responsible for establishing, designing, installing, and operating the Hamrawein plant. It will also provide banking bodies to fund the project. 

Moreover, the sources explained that the alliance is responsible for bringing offers from the banking bodies. The EEHC has the right to either accept or refuse the offer after looking at its conditions and how to fund it. The project will be implemented according to the EPC+Finance system.

The sources added that the ministry of electricity is responsible for negotiating with local banks that would like to participate in funding the project. Negotiations with the NBE, Banque Misr, and CIB have started.

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Egypt’s non-oil private sector’s activity decline to lowest point since September 2017 https://dailynewsegypt.com/2019/03/05/egypts-non-oil-private-sectors-activity-decline-to-lowest-point-since-september-2017/ https://dailynewsegypt.com/2019/03/05/egypts-non-oil-private-sectors-activity-decline-to-lowest-point-since-september-2017/#respond Tue, 05 Mar 2019 18:41:39 +0000 https://www.dailynewsegypt.com/?p=692009 Country's non-oil private sector activity declined to 48.2 in February, down from 48.5 in January

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Egypt’s non-oil private sector’s activity shrank for the sixth consecutive month, reaching 48.2 in February, down from 48.5 in January, which is still below the 50 mark which signals a growth in business activity, according to the Emirates NBD-Egypt Purchasing Managers’ Index (PMI).

The main results of the index indicated that output and new orders fell at faster rates, and employment declined for the fifth month running, in addition to that the input price inflation remains soft.

The report also revealed that the Egyptian firms saw new orders decline at a solid rate in February, due to weakening market conditions and falling exports.

“The decrease in total sales was the most marked for 20 months, with foreign demand dropping at the fastest rate since October 2016,” the report continued.

The report explained that business activity contracted in February, marking a six-month low with weak sales, poor weather conditions, and a lack of liquidity.

It also highlighted that employment at Egyptian firms fell marginally in the second month of 2019 as employees left for new jobs or retirement.

On the other hand, the report explained that the firms continued to manage their backlogs, with outstanding business broadly unchanged. Meanwhile, lead times slightly increased.

“Selling charges declined for the second month on row on the back of weakening market conditions that led firms to offer discounts,” according to the report.

Meanwhile, the report stated that the input price inflation remained soft, accelerating slightly in February from January as panelists highlighted rising transport, raw materials, electricity, and water prices.

On a positive outlook, the report stated that despite challenging operating conditions, businesses were optimistic toward the outlook for output in February.

“Overall sentiment rose to a ten-month high, with 44% of firms expecting conditions to improve in the coming 12 months,” the report added.

Furthermore, some of the firms mentioned the importance of planned business development as a key reason in underpinning confidence.

Commenting on the results, MENA Economist at Emirates NBD, Daniel Richards, stated that the index

has remained stubbornly in sub-50.0 contractionary territory for six months now, and while we continue to expect an improvement in conditions over the course of 2019, Egyptian firms clearly remain under pressure.

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Petroleum Ministry to launch 3 oil, gas exploration tenders in 2019: El-Molla https://dailynewsegypt.com/2019/03/05/petroleum-ministry-to-launch-3-oil-gas-exploration-tenders-in-2019-el-molla/ https://dailynewsegypt.com/2019/03/05/petroleum-ministry-to-launch-3-oil-gas-exploration-tenders-in-2019-el-molla/#respond Tue, 05 Mar 2019 17:58:55 +0000 https://www.dailynewsegypt.com/?p=691995 The Ministry of Petroleum and Mineral Resources aims to launch three international oil and gas exploration tenders in 2019, in an effort to increase domestic oil and gas production rates, the Minister of Petroleum, Tarek El-Molla, told Daily News Egypt on Tuesday. El-Molla said that one of the bid rounds by the Egyptian Natural Gas …

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The Ministry of Petroleum and Mineral Resources aims to launch three international oil and gas exploration tenders in 2019, in an effort to increase domestic oil and gas production rates, the Minister of Petroleum, Tarek El-Molla, told Daily News Egypt on Tuesday.

El-Molla said that one of the bid rounds by the Egyptian Natural Gas Holding Company (EGAS) will be for natural gas in the western Mediterranean region, while the Egyptian General Petroleum Corporation (EGPC) will offer exploration areas in the Western Desert, the Gulf of Suez, and the Eastern Desert during the current year.

He pointed out that the first bid round will be for oil and gas exploration in the Red Sea, which falls under the jurisdiction of Ganoub El Wadi Petroleum Holding Company (Ganope).

In February, the results of the recent geophysical data analysis in the Red Sea, carried out by Schlumberger in cooperation with Ganope, pointed out that there is a 70% chance for new natural gas discoveries.

The Red Sea is one of the most promising areas in Egypt, as no exploration activities were undertaken before the agreement on the demarcation of the maritime border with Saudi Arabia in 2017.

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Yellow Door Energy to launch $50m solar power plants in Egypt https://dailynewsegypt.com/2019/03/05/yellow-door-energy-to-launch-50m-solar-power-plants-in-egypt/ https://dailynewsegypt.com/2019/03/05/yellow-door-energy-to-launch-50m-solar-power-plants-in-egypt/#respond Tue, 05 Mar 2019 17:16:57 +0000 https://www.dailynewsegypt.com/?p=691993 New investments of $150m to be injected in company end-2019, says Sadder

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Yellow Door Energy company is planning to implement several solar energy projects in Egypt with investments estimated at $50m.

Omar Sadder, the head of development sector at the company, told Daily News Egypt that the company seeks to implement solar energy plants in Egypt with various capacities up to 20MW.

He added that his company is planning to manage all the phases of its solar energy plants. Long-term contracts were concluded under the build, operate, transfer (BOT) scheme, so that clients can pay for their consumption to the company which would become the only owners of the plant after the contract ends.

Sadder explained that Yellow Door Energy will be offering its services at 15-20% lower prices than the government’s.

Adding, the Egyptian government has created investment regulations and incentives in the sector of renewable energy, however, these regulations require further clarification, especially in terms of direct selling of electricity to consumers and the mechanism of determining the value of electricity transfer fees.

Sadder said that the company’s investments in Dubai and Jordan are estimated at $60m currently. New investments of $150m are planned to be injected by the end of this year.

“Yellow Door Energy relies on its own financial resources. It is also cooperating with several banks in Jordan and Dubai to partially fund the projects. The company has also launched solar energy plants with total 20MW capacities,” he said.

Sadder added that the company offers its prices at 25% lower prices than the government in the UAE. Moreover, the electricity prices in Jordan are lower than those in state-owned companies by 25-50%.

He said that Arab countries are all moving towards investing in the renewable energy, including countries that produce traditional energy like petroleum, coal, and natural gas.

He explained that Egypt ranks third after the UAE and Jordan in the production of new and renewable energy in the Arab world.

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Electricity distribution companies oblige users to purchase LED lamps to install prepaid electricity meters https://dailynewsegypt.com/2019/03/04/electricity-distribution-companies-oblige-users-to-purchase-led-lamps-to-install-prepaid-electricity-meters/ https://dailynewsegypt.com/2019/03/04/electricity-distribution-companies-oblige-users-to-purchase-led-lamps-to-install-prepaid-electricity-meters/#respond Mon, 04 Mar 2019 21:11:15 +0000 https://www.dailynewsegypt.com/?p=691860 Electricity distribution companies have been spotted obliging users to purchase LED lamps before installing their prepaid electricity meters. Daily News Egypt has witnessed the obligatory selling of LED lamps to citizens before they paid the fees for their meters. Informed sources told Daily News Egypt that the main reason for this move was due to …

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Electricity distribution companies have been spotted obliging users to purchase LED lamps before installing their prepaid electricity meters. Daily News Egypt has witnessed the obligatory selling of LED lamps to citizens before they paid the fees for their meters.

Informed sources told Daily News Egypt that the main reason for this move was due to the availability of large amounts of LED lambs at the companies’ stores. The South Cairo Electricity Distribution company has been selling LED lamps on installments added to electricity bills.

The sources explained that citizens who have applied for prepaid electricity meters must pay the indexation and installment fees and then purchase 10 LED lamps in order to install the meters.

According to the contracting conditions signed by citizens to install electricity meters, there is no item or article concerning purchasing LED lamps, however, it was ordered as part of the fees to install the meters. The price of the LED lamp sold by the South Cairo Electricity Distribution Company stood at EGP 25-32.

The sources said that many quarrels have occurred between citizens and the specialised employees. The issue usually ends by reducing the number of lamps that citizens must purchase.

According to the Ministry of Electricity, the number of lamps existing in the electricity distribution companies’ stores reached 13m lambs. About 11.8m were distributed on installments added to the consumption bills or bought directly.

The Ministry of Electricity has started selling LED lamps in 2015 to participate in rationalising consumption. It has put forward a strategy to install 13m LED lamps as well as 2.6m lamp posts to reduce consumption by 12%.

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Sudanese unrest halts power interconnection with Egypt https://dailynewsegypt.com/2019/03/04/sudanese-unrest-halts-power-interconnection-with-egypt/ https://dailynewsegypt.com/2019/03/04/sudanese-unrest-halts-power-interconnection-with-egypt/#respond Mon, 04 Mar 2019 20:22:59 +0000 https://www.dailynewsegypt.com/?p=691866 EETC completes about 70% of its targeted FY 2018/19 investments, says chairperson

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The unstable political situation in Sudan halted the country’s power interconnection project with Egypt, Sabah Mohammed Mashaly, Chairperson and Managing Director of the Egyptian Electricity and Transmission Company (EETC), affiliated to the Ministry of Electricity and Renewable Energy.

“We are waiting for the appointment of a new government in Sudan to resume the coordination over implementing the project,” Mashaly told the reporters on Monday, following her participation in an event organised by the European Bank for Reconstruction and Development (EBRD), entitled “Women in Green Energy: enhancing employment and entrepreneurship opportunities”.

The EETC finalised about 70% of the targeted investments for the fiscal year (FY) 2018/19, Mashaly mentioned, noting that the company’s goal is to implement projects with investments of EGP 20bn over the current FY that ends on 30 June.

“We have already received several funds from international financial institutions, including the EBRD and the World Bank, for adding capacities to the electricity national grid,” she mentioned, denying her company’s intention to negotiate with the aforementioned financial institution on new funds shortly.

In February, Siemens announced the completion of a 400MW extension to the Toshka substation in Egypt, which is located near the Egyptian-Sudanese borders, about 1,300 km away from Cairo.

The completion of the project paves the way for the realisation of the $60-70bn Egypt-Sudan interconnection project, on which phase one trial operation is set to begin shortly, Siemens added.

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GASREG grants 18 companies natural gas shipping, supply, distribution licenses https://dailynewsegypt.com/2019/03/04/gasreg-grants-18-companies-natural-gas-shipping-supply-distribution-licenses/ https://dailynewsegypt.com/2019/03/04/gasreg-grants-18-companies-natural-gas-shipping-supply-distribution-licenses/#respond Mon, 04 Mar 2019 17:01:20 +0000 https://www.dailynewsegypt.com/?p=691852 EGAS obtains two licenses for shipping, supplying gas, says source

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The Gas Regulatory Authority (GASREG) has licensed 18 private and public companies for shipping, supplying, and distributing natural gas in the local market.

Two of the licenses were granted to the Egyptian Natural Gas Holding Company (EGAS) for supplying and shipping the natural gas in the local market, a source of GASREG told the Daily News Egypt. While the Egyptian Natural Gas Company (GASCO) has obtained three licenses for transmitting, distributing, and supplying the natural gas, the source added.

A total of 16 Egyptian companies engaged in launching gas sub-networks and gas delivery to consumers have obtained licenses to distribute gas in the local market, according to the GASREG source.

“The activities that require licensing concern operating gas networks and facilities, as well as trading activities, such as shipping and supplying,” the source said, explaining that the first phase includes licensing the gas transmission operator, distributer, shipping operator, and supplier.

The source asserted that GASREG has nothing to do with determining the gas prices for consumers, it is only committed to the pricelist determined by the government.

GASREG has valued the fees of licensing for transmitting, shipping, distributing, and supplying the natural gas according to the Gas Market Activities Regulation Law issued in August 2017.

The regulatory law has determined fees of issuing license for transmission at 0.057 piasters per British thermal unit (BTU), shipping at 0.031 piasters/BTU, distribution at 0.023 piasters/BTU, and supplying at 0.008 piasters/BTU.

The license is a legal authorisation of the GASREG to allow any entity to practice any activity in gas local market. Every license is being issued after scrutinising their legal and technical commitment, according to GASREG requirements, which determines the rights and obligations of the license.

The law no. 196 for 2017 to regulate gas market stipulates that GASREG has the right to determine gas prices, according to supply and demand, to gradually liberate the gas market through the coordination with the petroleum sector entities.

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Shell’s production from Burullus, Rashid gas fields fell by 150m scf/day https://dailynewsegypt.com/2019/03/02/shells-production-from-burullus-rashid-gas-fields-fell-by-150m-scf-day/ https://dailynewsegypt.com/2019/03/02/shells-production-from-burullus-rashid-gas-fields-fell-by-150m-scf-day/#respond Sat, 02 Mar 2019 19:15:25 +0000 https://www.dailynewsegypt.com/?p=691621 Up to 100m scf/day to be added to phase 9B in 1H19

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Shell’s natural gas production from Burullus and Rashid fields has declined to 250m cubic feet (scf) per day, compared to 400m scf/day during 2018, due to the natural decline in the fields’ productivity rate, a source in the petroleum sector told the Daily News Egypt.

Shell seeks adding 100m scf/day in the first stage of Phase 9B in Burullus field during the first half (H1) of 2019 to increase the production rates and compensate the natural decline, according to the source, who added that the project includes eight productive wells and two exploratory wells.

The Dutch giant is planning to increase the Burullus production to 350m scf/day by the end of the current fiscal year, compared to 250m scf/day at the present.

The source added that Shell is exporting all its production from Burullus and Rashid fields to the global market, through Idko liquification vessel.

He further added that the company is drilling four wells in Phase 9B in the deep water, two of them started production in 2018, noting that the Egyptian General Petroleum Corporation (EGPC) pays $3.1 per 1 million British thermal unit (BTU) for natural gas from Shell’s share in 9B at Burullus.

Shell allocated $500m investments for several projects in FY 2019/20, including the Phase 9B project and establishing a pipeline to link West Delta gas fields.

The proven reserves of Burullus fields are estimated at about 5tn scf. Meanwhile, the maximum production capacity of each well in Phase 9B reaches 50m scf/day, according to the source.

The Ministry of Petroleum aims to increase the productivity of its existing gas fields, as well as accelerate the pace of work in the discovered fields to put them on the production map to compensate the natural decline in the productivity of old gas fields.

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Egyptian-Chinese alliance offers to sell solar power to BMIC https://dailynewsegypt.com/2019/02/27/egyptian-chinese-alliance-offers-to-sell-solar-power-to-bmic/ https://dailynewsegypt.com/2019/02/27/egyptian-chinese-alliance-offers-to-sell-solar-power-to-bmic/#respond Wed, 27 Feb 2019 20:43:23 +0000 https://www.dailynewsegypt.com/?p=691397 $80m investments to be injected in project, ADB approves fund

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An Egyptian-Chinese alliance offered to launch a solar power plant with a capacity of 100MW and to sell the generation for the Building Materials Industries Company (BMIC), chairperson of Misr Asset Management (MAM), Ezz Othman, told Daily News Egypt on Wednesday.

Chinese Yingli Solar company will collaborate with MAM to establish the solar station, with investments estimated at $80m, and agreed with BMIC to sell the generated electricity to its cement factory.

The technical and economic studies for the project have been finalised, and it will be reviewed by the BMIC’s board, who initially agreed to purchase the generated electricity, however, the final approval is yet to be issued to start implementing the project, according to Othman.

He confirmed the Asian Development Bank’s (ADB) approval to finance the station with $50m.

“BMIC’s concrete factory’s electricity consumption costs up to EGP 80m per month, that’s why the company is seeking to depend on solar energy to slim down the electricity bill,” Othman told Daily News Egypt.

Sameer Sabry, BMIC’s managing director, previously said that the country’s tendency to reduce energy subsidy is positive under the current circumstances, however, it negatively affects the steel, cement, and fertilisers sectors.

He pointed out that the cement industry in Egypt is advanced, but with the liberalisation of energy prices caused price hikes.

“The cement sector is experiencing a state of continuous change in prices under the mechanism of supply and demand, as well as changes in material prices,” Sabry said, stressing on the need to fully depend on local-produced materials to maximise the added value to this sector.

Sabry called on the government to reconsider liberation of energy prices, and its impact on the performance of every industrial sector.

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Egypt’s gas exported to Jordan increases to 350m scf/day: petroleum minister https://dailynewsegypt.com/2019/02/27/egypts-gas-exported-to-jordan-increases-to-350m-scf-day-petroleum-minister/ https://dailynewsegypt.com/2019/02/27/egypts-gas-exported-to-jordan-increases-to-350m-scf-day-petroleum-minister/#respond Wed, 27 Feb 2019 20:34:23 +0000 https://www.dailynewsegypt.com/?p=691405 Contract with Jordanian Ministry of Energy is changeable according to demand

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Egypt’s Ministry of Petroleum has increased the amounts of gas exported to Jordan to about 350m cubic feet per day (scf/day) in order to provide the Jordanian electricity stations’ needs, compared to 100m scf/day in January.

The Minister of Petroleum, Tarek El Molla, told Daily News Egypt that Egypt exports changeable amounts of natural gas to Jordan based on the needs of their electricity stations.

He added that the gas export contract signed with the Jordanian Ministry of Energy is dynamic and changeable according to the needs of the Jordanian market and the available quantities in Egypt after fulfilling the local needs.

In 2004, the Egyptian government signed an agreement to export 250m scf/day for 15 years at $2.5 per Million BTU, however, the government increased gas prices in April 2012 to $5 per one Million BTU.

El Molla added that Egypt’s resumption of natural gas exportation to Jordan, since September 2018 through the pipelines connecting Egypt and Jordan, has contributed to turning the country into a regional energy centre after achieving self-sufficiency.

The agreement between Egypt and Jordan stipulates that 10% of the Jordanian electricity needs shall be provided by the Egyptian natural gas.

Later, Egypt signed an agreement with Jordan to supply the latter with about 250m scf/day at prices different from the original agreement that had expired.

El Molla said that he is continuously following up the situation with his Jordanian counterpart, Hallah Zawaty, as well as the strategies put forward to provide and diversify the sources of energy. 

El Molla pointed out that the Ministry of Petroleum intensifies its efforts in cooperation with foreign partners in order to implement gas exploration development projects in the deep waters of the Mediterranean and the Nile Delta, to contribute to increasing the production of natural gas locally.

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Gas exports through EDCO increase to 800m scf: Petroleum Minister https://dailynewsegypt.com/2019/02/26/gas-exports-through-edco-increase-to-800m-scf-petroleum-minister/ https://dailynewsegypt.com/2019/02/26/gas-exports-through-edco-increase-to-800m-scf-petroleum-minister/#respond Tue, 26 Feb 2019 19:46:44 +0000 https://www.dailynewsegypt.com/?p=691292 Egypt returns to exporting liquefied gas to international markets after achieving self-sufficiency

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The Minister of Petroleum, Tarek El-Molla, has increased the amounts of liquefied gas exported through the EDCO liquefaction factory to about 800m cubic feet (scf) of gas daily, compared to 500m scf in the start of this year.

El-Molla told Daily News Egypt that the amounts exported through EDCO liquefaction factory were increased in order to make Egypt strongly return after achieving local self-sufficiency.

He added that steps were taken to turn Egypt into a regional centre in the market energy, including exporting the surplus through EDCO’s factory or exporting some of the amounts to Jordan to meet its needs.

El Molla explained that the amounts of gas exported through EDCO have gradually increased after the local decline of consumption of gas during winter and the increase in production, meeting all the needs of the industrial sector, electricity plants, cars and households.

He said that the ministry’s plan to connect the wells of Zohr, North Alexandria, and Borollos contributes to increasing local production and covering consumption rates with operating the liquefaction factories, in addition to the gas coming from Cyprus and Israel.

El Molla pointed out the suspension of importing liquefied natural gas shipments was achieved with local self-sufficiency and utilising the gasification ship affiliated to Norwegian PW Gas if needed.

The contractual share of EDCO is estimated to be 1.13bn scf of gas daily. The pumping rates have been declining since 2011 as a result of the decline in Egypt’s natural gas production after the 25 January Revolution, until it completely stopped since the start of 2015.

In order for the factory to achieve self-sufficiency and a balance between its revenues and expenses, it is required to export about 22 liquefied gas shipments annually.

Noteworthy, the EDCO liquefaction factory is designed to operate 340 days every year. It stops production for a month in order to carry out maintenance. The annual expenses of maintenance are $20m.

The structure of the ownership structure of EDCO is divided into 12% for the General Petroleum Corporation and 12% for EGAS, in addition to Shell by 35.5%, Petronas 35.5%, and Gaz de France by 5%.

Egypt’s natural gas production has increased to 6.8bn scf daily, compared to 6.2bn scf last year after connecting the gas production from the second phase of the West Nile Delta project to North Alexandria and other wells.

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Tremendous efforts to exploit Egypt’s mineral wealth: El-Molla https://dailynewsegypt.com/2019/02/25/tremendous-efforts-to-exploit-egypts-mineral-wealth-el-molla/ https://dailynewsegypt.com/2019/02/25/tremendous-efforts-to-exploit-egypts-mineral-wealth-el-molla/#respond Mon, 25 Feb 2019 20:04:45 +0000 https://www.dailynewsegypt.com/?p=691101 Investments for project estimated at $800m

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The Minister of Petroleum and Mineral Resources, Tarek El-Molla, asserted on Monday the state’s tendency to make use of Egypt’s rich reserves of mineral resources, in a way that attracts more investments into the Egyptian market, in accordance with the vision and the objectives of the state in achieving sustainable development.

During a tour at Abu Tartur project to inspect the phosphoric acid production complex, alongside the governor of the New Valley governorate, Mohamed Zamlout, El-Molla said that the government is developing legislative reforms and a roadmap for the advancement of the mining sector in Egypt, which leads to making use of the mineral wealth, in collaboration with a number of experts, specialists, investors, and concerned authorities, who have all cooperated to increase the national output.

The Abu Tartur project of the company for the phosphate industries and fertilisers is currently underway at the New Valley, with an investment estimated at $800m, and a phosphoric acid production capacity of 500,000 tonnes per year.

“The new project embodies the government’s interest in increasing the value of the mineral wealth which can bring in great yields to the country,” El-Molla said, adding that it will contribute to covering the local consumption, as well as achieving a comprehensive development in southern Egypt.

The project is highly remarkable, as it makes use of the large reserves of phosphate at ​​Abu Tartur plateau in the New Valley, according to El-Molla.

“Increasing phosphoric acid production is essential in improving the agriculture in Egypt, as it is the basic raw material in the manufacture of phosphate fertilisers,” El-Molla said, explaining that the ministry aims to establish complementary industries in order to process the mineral materials, and convert it into final products, thus leading to secure the needs of the local market, as well as raising the country’s exports of phosphate.

For his part, Zamlout said that the project reflects the state’s interest in the optimal exploitation of mineral wealth and the natural resources of the New Valley, pointing out that the project will be followed by other projects based on the produced phosphoric acid, which encourages attracting more investments and providing new jobs for the governorate’s residents.

The complex consists of three units, one of which to produce concentrated sulfuric acid with an annual capacity of 1.6m tonnes, and another to produce the phosphoric acid, and the third to process it after production to reach the required purity, depending on an input of 2m tonnes of phosphate per year, the Chairperson of Misr Phosphate, Khaled Al-Ghazali Harb, said while he accompanied the minister on his tour.

The project will also contribute to generating electricity for the surrounding area with a capacity of 33.5MW, in addition to pumping the surplus of the project to the national electricity grid.

During the tour, Harb reviewed the development at the Abu Tartur plateau project to extract phosphate, and the challenges they faced and the establishment of the Misr Phosphate in 2009, which turned the losses into profits. He pointed out that the renovation of the railway line connecting Abu Turtur, Qena and Safaga, is aligned with the state’s plan to use railways in commodities’ transportation, as well as using it to transport passengers.

Harb pointed out that Misr Phosphate has overcome the dilemma of the price difference in selling phosphate, as it unified the export’s prices and improving the quality of the Egyptian product.

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Oil prices hit $67 per barrel, driven by production cuts https://dailynewsegypt.com/2019/02/24/oil-prices-hit-67-per-barrel-driven-by-production-cuts/ https://dailynewsegypt.com/2019/02/24/oil-prices-hit-67-per-barrel-driven-by-production-cuts/#respond Sun, 24 Feb 2019 16:58:00 +0000 https://www.dailynewsegypt.com/?p=690920 OPEC seeks extending production cuts until April’s meeting

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Crude oil prices reached their highest level in a month in yesterday’s trading, estimated at $67 per barrel, driven by the OPEC supply cuts as well as the trade developments between the US and China, compared to $61 per barrel last month.

The OPEC and the non-OPEC countries are planning to extend the production cuts for a further period, Medhat Yousef, the former vice chairperson of the Egyptian General Petroleum Corporation, told Daily News Egypt.

Yousef expressed his concern, as oil price hikes negatively impact the importing countries, such as Egypt, as it weighs heavily on the economy.

On the other hand, the OPEC Secretary-General, Mohammad Barkindo, has pointed out to indications of the market’s recovery and stability in crude oil prices in the upcoming period.

“The OPEC and non-OPEC countries are determined to continue the efforts to achieve balance in the global oil market, despite the pressures the organisation faces,” Barkindo said, affirming that the OPEC members are continuing talks in order to make decisions in favour of the oil market balance.

Barkindo assured that the barrel’s price will not exceed $70, until the next meeting of the OPEC members in April in order to discuss extending the production cut during 2019.

Oil-producing countries, including Russia, agreed in November 2016 to curb their production by 1m barrel per day (b/d). The agreement entered into force in early 2018 and was later extended until the end of 2018.

Oil revenues fell down, as the US crude hit a record of 12m b/d, raising the country’s export rates.

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Acwa Power to finalise 3 projects worth $200m in Benban end-June https://dailynewsegypt.com/2019/02/24/acwa-power-to-finalise-3-projects-worth-200m-in-benban-end-june/ https://dailynewsegypt.com/2019/02/24/acwa-power-to-finalise-3-projects-worth-200m-in-benban-end-june/#respond Sun, 24 Feb 2019 16:53:11 +0000 https://www.dailynewsegypt.com/?p=690914 Company awaiting cabinet’s approval for 500MW wind project, says Hassan Amin

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The Saudi energy company Acwa Power is expected to finalise its 160MW three projects in the Benban Solar Park in Aswan, which are worth $200m by the end of June, Hassan Amin, the company’s country director told Daily News Egypt on the side-lines of attending the Egyptian Saudi business forum on Saturday.

“Lately, we have signed an agreement with the Egyptian government for an electricity plant with a capacity of 2,250MW in Luxor with investments estimated at $2.5bn,” he noted, explaining that the Luxor project is part of the governmental efforts to add new capabilities to the electrical grid especially in Upper Egypt.

The Egyptian Electricity Transmission Company intends to increase the cost share of each investor in the solar energy project in Benban by 25%, a source at the company told DNE on Sunday. The cost increase comes due to the high price hike of building materials. The Egyptian Electricity Holding Company will share the cost hike with investors.

Amin affirmed that the company is awaiting the cabinet’s approval for implementing a 500MW wind project in the Ras Ghareb area, adding that Acwa Power applied the project offer to the ministry of electricity and obtained the economic ministers group approval.

“The climate of investment in Egypt is improving following the New Investment Law and simplifying the foundation procedures. Energy subsidy’s cut is a positive measure which is being gradually implemented by the Egyptian government,” he mentioned.

Holding Egyptian-Saudi business forum boosts the coordination between both countries’ businesspersons, Amin mentioned, adding that it also opens new fields of cooperating in new projects.

Mohamed El Zamalot, the New Valley governor, presented the various investment opportunities in his governorate. The presentation was great and will help in attracting new Saudi investments to the Egyptian market,” he noted.

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China’s GCL negotiates with Military Production Ministry to establish solar panel complex https://dailynewsegypt.com/2019/02/24/chinas-gcl-negotiates-with-military-production-ministry-to-establish-solar-panel-complex/ https://dailynewsegypt.com/2019/02/24/chinas-gcl-negotiates-with-military-production-ministry-to-establish-solar-panel-complex/#respond Sun, 24 Feb 2019 16:50:31 +0000 https://www.dailynewsegypt.com/?p=690908 Chinese company bids to launch 600MW solar energy plants

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China’s GCL Group has entered negotiations with the Ministry of Military Production to launch a complex of solar panels production.

The Investment and Development Director at GCL, Allen Gai, told Daily News Egypt that negotiations and consultations have taken place with officials of the Ministry of Military Production over the past two months over establishing a solar panel complex.

The GCL has agreed with several banks on funding the project, however, the financing agreements will be revealed in a different time.

Regarding the attempt to establish conditional agreements before contracting with the ministry, Gai stressed that discussing contractual details was not allowed, however, it is safe to say that GCL seeks a long-term investment.

Workers will be trained on the production lines and will be offered engineering consultations as well as enable them to work and maintain the factories of solar panels production.

Egypt has obtained a grant worth KWD 200,000 from the Kuwaiti Fund for Arab Economic Development in order to complete the feasibility studies of the complex.

According to the ministry, the industrial complex will be established over five stages, starting from extracting pure Egyptian quartz through manufacturing metal and poly-silicon and manufacturing solar cells and panels.

The ministry is seeking to benefit from the expertise of the Chinese company to localise the technology of establishing solar panels and covering the local market’s needs and exporting to Arab and African countries.

Gai said that the GCL will not be implementing the solar panel complex alone, however, it is always seeking partnerships and concluding contracts that satisfy all the parties involved.

He said that his company is allying with another company to compete over a tender launched by the Egyptian Electricity Transmission Company (EETC) to establish a solar energy plant with a capacity of 600MW.

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EETC to increase investors’ cost shares in Benban project by 25% each https://dailynewsegypt.com/2019/02/23/eetc-to-increase-investors-cost-shares-in-benban-project-by-25-each/ https://dailynewsegypt.com/2019/02/23/eetc-to-increase-investors-cost-shares-in-benban-project-by-25-each/#respond Sat, 23 Feb 2019 20:43:22 +0000 https://www.dailynewsegypt.com/?p=690871 The Egyptian Electricity Transmission Company (EETC) intends to increase the cost share of each investor in the solar energy project in Benban, Aswan by 25%, a source at the company told Daily News Egypt. Investors were verbally notified of the raise a week ago, the source added, stressing that an official letter will be sent …

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The Egyptian Electricity Transmission Company (EETC) intends to increase the cost share of each investor in the solar energy project in Benban, Aswan by 25%, a source at the company told Daily News Egypt.

Investors were verbally notified of the raise a week ago, the source added, stressing that an official letter will be sent to them detailing the planned increase, which they will be obligated to pay before June.

The cost increase comes due to the high price hike of building materials, the source explained, noting that the Egyptian Electricity Holding Company will share the cost hike with investors. This is the second increase in investors’ cost shares.

The cost sharing deal is one of five deals signed by eligible investors to construct renewable energy projects under the feed-in tariff system. These deals include chipping in the cost of connecting solar power stations to be inaugurated by the National Electricity Transmission Grid.

The cost sharing deal also includes obligating investors to pay the cost of road construction at the price of EGP 3,100 for 1 MW/hour, as well as paying the cost of connecting transform electricity stations at the price of EGP 583,000 for 1 MW/hour produced by solar plants.

Investors were first notified of the increase in 2016, following the Central Bank of Egypt’s decision to float the exchange rate, and was planned to be increased again, the source said.

“The feed-in tariff contracted by investors to sell 1 kw/hour at 8.4 piasters was very reasonable, compared to the price the ministry received (2.7 piasters) at the last tender,” the source told Daily News Egypt.

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Eni to complete implementation of Zohr’s sixth processing unit within days https://dailynewsegypt.com/2019/02/23/eni-to-complete-implementation-of-zohrs-sixth-processing-unit-within-days/ https://dailynewsegypt.com/2019/02/23/eni-to-complete-implementation-of-zohrs-sixth-processing-unit-within-days/#respond Sat, 23 Feb 2019 20:39:37 +0000 https://www.dailynewsegypt.com/?p=690875 Project’s production will increase to 2.3bn scf/day by March

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Italian Eni will complete the implementation of the sixth natural gas processing unit in the Zohr field by the end of this month, bringing the project’s production to about 2.3bn cubic feet of gas per day (scf/day), compared to 2.1bn scf/day now.

A source at the petroleum sector told Daily News Egypt that Eni has completed drilling the 10th well at Zohr amid the gradual connection of the field’s production to the gas processing unit.

He pointed out that the average production of the well at Zohr will be 250m scf/day. The production from the field’s 10 wells was reduced until the sixth processing unit is completed to increase the capacity to 2.4bn scf/day.

The source explained that drilling a single well in Zohr requires two months. Currently, preparations are made to drill the 10th well.

He added that the average capacity of the processing unit is estimated at 400m scf/day.

The source noted that the company has completed drilling 10 wells in the deep waters of the Mediterranean Sea to produce 2.1bn scf/day.

He pointed out that completing the development of the second phase of Zohr will take place in June, increasing the total production capacity to 2.95bn scf/day, compared to 2.7bn stipulated in the development plan.

He added that Eni aims to invest about $4bn in the development of the second phase of Zohr this year, increasing the company’s total investments in the project to $16bn.

The source stressed that the Ministry of Petroleum seeks to speed up the implementation of the next phase of Zohr upon the directives of President Abdel Fattah Al-Sisi to speed up connecting the project’s production to the national grid.

In cooperation with the foreign partner, the ministry has managed to reduce the time required for implementing the project and increase gas production from Zohr to 2.1bn scf/day at the beginning of this year.

Production was connected to the new land plant in Port Said in order to process it and pump it again to the national gas grid after implementing the technical operation tests of the processing units and the gas transport lines from the wells of the field to the processing plant.

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Egypt’s gas production increases to 6.8bn scf/day https://dailynewsegypt.com/2019/02/20/egypts-gas-production-increases-to-6-8bn-scf-day/ https://dailynewsegypt.com/2019/02/20/egypts-gas-production-increases-to-6-8bn-scf-day/#respond Wed, 20 Feb 2019 17:47:19 +0000 https://www.dailynewsegypt.com/?p=690586 Domestic market consumption drops to 5.5bn scf/day, says source

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Egypt’s natural gas production has increased to 6.8bn standard cubic feet per day (scf/day), compared to 6.2bn scf/day last year after adding the production of the second phase of the West Nile Delta project “North Alexandria” and other wells to the national grid.

A source at the Egyptian Natural Gas Holding Company (EGAS) told Daily News Egypt that the new projects were connected to the production, such as Zohr, Nawras, North Alexandria, and 9B, have contributed to compensating the natural decline rate of fields and increasing production.

It is targeted to increase Egypt’s natural gas production to 7.5bn scf/day during the upcoming fiscal year, he added.

The source explained that the decline of the local market’s consumption of natural gas to 5.5 scf/day over the current period was the result of the decline in electricity plants’ fuel consumption in winter.

He added that the rate of natural gas consumption in the local market was growing annually, according to the plan of industrial and construction development with the increase in the number of cars that operate with natural gas.

The electricity consumption sector represents 61% of the total natural gas consumption, while the rest of the sectors consuming gas (industry, houses, cars, and petroleum and its derivatives) account for 39% of consumption.

The source added that the rate of local gas consumption will increase again to 7bn scf/day during the upcoming fiscal year (FY), compared to 6.2bn scf/day during the current FY.

The average consumption of the domestic gas market will increase to about 9bn scf/day by 2020/2021, according to the industrial development plan, due to the increase in production capacity of electricity, house gas lines, and converting more cars to run by gas instead of petroleum.

Egypt’s production plan will contribute in increasing natural gas production from the fields of Zohr, North Alexandria, and Borlos in order to cover consumption rates, especially after operating the liquification plants for gas coming from Cyprus and Israel, the source said.

He noted that Egypt has halted importing liquefied natural gas (LNG) shipments, as it had achieved the domestic self-sufficiency, and the Singaporean-Norwegian gasification ship (PW Gas) will be used in case of the need for importing gas.

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UFG denies reaching settlement agreement with Egypt https://dailynewsegypt.com/2019/02/19/ufg-denies-reaching-settlement-agreement-with-egypt/ https://dailynewsegypt.com/2019/02/19/ufg-denies-reaching-settlement-agreement-with-egypt/#respond Tue, 19 Feb 2019 19:24:10 +0000 https://www.dailynewsegypt.com/?p=690403 Company says guarantees offered are not sufficient

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The Spanish Union Fenosa Gas (UFG) denies media reports that any settlement has been reached with the Egyptian government in regards to the dispute about the gas supply to the Damietta Liquefied Natural Gas (LNG) plant, the company announced on Monday.

“The UFG reiterates its commitment to reach an amicable agreement with the Egyptian government and the state-owned companies based on the compensation for the damages caused, the restoration of gas supply to the Damietta LNG plant, and the guarantees of future compliance with the contracts,” the statement added.

Furthermore, the company said that despite the achieved progress in negotiations, yet the guarantees offered by the Egyptian authorities are not sufficient to reach the comprehensive agreement required to bring the dispute to its end.

“Whenever an agreement is reached, the market will be informed in a timely manner,” according to the statement.

In 2018, the World Bank-managed International Centre for Settlement of Investment Disputes (ICSID) ruled against Egypt to uphold the arguments of the claim filed by the UFG, and considered Egypt responsible for the breach of the bilateral investment protection treaty between Egypt and Spain.

Moreover, the ICSID stated that Egypt must compensate the UFG for the damages caused by $2.013bn, plus the interest, the associated arbitration, and the legal costs.

The UFG accused the state-owned the Egyptian Natural Gas Holding Company (EGAS) that it had stopped supplying quantities of natural gas agreed upon in the gas sale and the purchase contract between the EGAs and UFG in 2000.

The agreement obliges EGAS to supply 750m cubic feet of gas per day to the Damietta plant starting from January 2005, and up to 4.4bn of cubic meters per year (bcm).

Following the January 2011 revolution and the subsequent unrest, the gas supply to the plant was reduced until a full halt in December 2012 to date.

Industry sources informed Daily News Egypt that the Italian Eni was approved to export part of the gas produced from the Zohr gas well through the Damietta plant if the local market does not need it.

The Damietta plant, with a processing capacity of up to 7.56bn cubic meters per annum (bcma), is 80% owned by the UFG – a joint venture between Spain’s Gas Natural and Italy’s Eni – and 20% by the Egyptian national companies, EGAS and the Egyptian General Petroleum Corporation.

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Petroleum Marine Services signed 35 contracts worth EGP 298m in 2018 https://dailynewsegypt.com/2019/02/19/petroleum-marine-services-signed-35-contracts-worth-egp-298m-in-2018/ https://dailynewsegypt.com/2019/02/19/petroleum-marine-services-signed-35-contracts-worth-egp-298m-in-2018/#respond Tue, 19 Feb 2019 09:53:13 +0000 https://www.dailynewsegypt.com/?p=690296 El Sayed El Badawy, head of the Marine Petroleum Services Company, has signed 35 contracts during the past year worth EGP 298m, which is one of the highest contracts in the history of the company. In addition, the company also purchased new assets in the marine unit for transportation and supply. El Badawy explained that …

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El Sayed El Badawy, head of the Marine Petroleum Services Company, has signed 35 contracts during the past year worth EGP 298m, which is one of the highest contracts in the history of the company.

In addition, the company also purchased new assets in the marine unit for transportation and supply.

El Badawy explained that all marine units were maintained and upgraded, in addition to upgrading the efficiency of nine marine units. Development costs and the inevitable reservoirs of marine units amounted to about $15m.

He mentioned that the company participated in a large volume of work in various fields, most important of which is participating in the Zohr gas field development project, in addition to the land works, which includes the construction of two sea lanes and a trench of 772 metres long, and 36 metres wide.

Moreover, the company extended four marine lines of 63 kilometres, surveyed the deep-sea water lines, and participated in the development of the Southwest of Baltim field, which includes marine surveying and land works, including the establishment of a lane and a trench of 278 metres.

The company has also installed a buoy and deployed a 36-inch line for the Western Desert Operating Petroleum Company and installed a six-inch line for Abu Qir Petroleum Company, in addition to a number of maintenance of platforms, lines, drilling and production services for its sister companies.

This came during the general assembly of the company chaired by the minister of petroleum to review the company’s 2018 business results.

The Minister of Petroleum and Mineral Resources, Tarek El-Molla, stressed the importance of increasing support for marine petroleum activities and improving the performance of maritime units as well as raising their efficiency, especially the installation and maintenance of marine platforms and installations through the use of state-of-the-art technologies.

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Abu Qir Petroleum considering drilling new well with investments of $30m https://dailynewsegypt.com/2019/02/19/abu-qir-petroleum-considering-drilling-new-well-with-investments-of-30m/ https://dailynewsegypt.com/2019/02/19/abu-qir-petroleum-considering-drilling-new-well-with-investments-of-30m/#respond Tue, 19 Feb 2019 09:50:51 +0000 https://www.dailynewsegypt.com/?p=690338 Company plans to finish 5 wells to add about 5,000 barrels of oil equivalent to daily production rates

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Mohamed Abdel Salam, the chairperson of Abu Qir Petroleum Company, said that the drilling of the new well contributes to increased daily production and the addition of proven reserves of 36bn cubic feet (scf) of gas. The company is currently executing the project of operating the ground compressor station with an investment of $14m, which is expected to add 25m scf of gas daily.

He pointed out that the budget for the next fiscal year (FY) 2019/20 includes total investment of about $190m and plans to complete five development wells to add about 5,000 barrels of oil equivalent to the daily production rates.

Furthermore, he explained that it is planned to implement the compressor station project in Maadia with investment of about $16m, as well as continue to implement projects for occupational safety and health, which work to provide a safe working environment for individuals, equipment and project implementation, which contributes strongly toward achieving plans to increase work and production rates.

Moreover, Abdel Salam said that the company carried out a drilling plan for seven wells, including an exploratory well, which achieved positive results and was put on production. It also drilled six development wells in the North Abu Qir field through the new sea pier north of Abu Qir 3. They have also linked to production in order to bring total output up in the second half of the current FY.

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NIB drops suits against electricity companies before Economic Court https://dailynewsegypt.com/2019/02/19/nib-drops-suits-against-electricity-companies-before-economic-court/ https://dailynewsegypt.com/2019/02/19/nib-drops-suits-against-electricity-companies-before-economic-court/#respond Tue, 19 Feb 2019 09:46:28 +0000 https://www.dailynewsegypt.com/?p=690305 Negotiations with government agencies to schedule EGP 200bn during current year, says Montaser

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Mahmoud Montaser, the deputy chairperson and managing director of the National Investment Bank (NIB), said that the ministry of electricity and its subsidiaries are committed to paying their debts that have been scheduled during the previous two years.

He added that the bank dropped the cases against the electricity companies in Cairo’s Economic Court. There are negotiations on scheduling EGP 200bn with various governmental bodies, including the New Urban Communities Authority (NUCA) and the Egyptian National Railways, among others this year.

The Egyptian Electricity Transmission Company (EETC) paid EGP 4.2bn of its debts to the National Investment Bank during the fiscal year 2017/18.

Sources in the EETC said it was agreed to pay the debt over 10 years in return for waiving the lawsuit against the company. The first instalment this year will be paid within weeks.

The sources explained that the company has developed a plan to pay debts in favour of other parties to dismantle financial intermediation in coordination with the Egyptian Electricity Holding Company (EEHC), as the company buys the energy generated from the production companies to sell to the distribution companies, which in turn sell to subscribers.

The NIB filed lawsuits before the Economic Court in previous years against the ministry of electricity and some of the subsidiaries, the EETC, and the EEHC is to pay debts in favour of the bank.

Judicial sources said earlier that two appeals in the ninth constituency worth EGP 546.7m are under review. The first suit is the EETC issuing promissory notes in favour of the bank which resulted in the transfer of debt balance of EGP 1.4bn from the NUCA to the EETC since 2008, and that resulted in another debt of EGP 245.9m which has not been paid yet.

The second case is the transfer of a debt balance due to the bank worth EGP 318.7m from the Rural Electrification Authority to implement projects for the benefit of the defendants.

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