Egypt is an International Economic Center for Oil and Natural Gas Trade
Egypt has the capabilities and potentials which entitle it to be the energy exporting center from the main sources to the main markets in Europe. Also it is possible to increase the storage capacity in the Egyptian ports on the Red and the Mediterranean Sea to take advantage of the basic Infrastructure of the National Grids for transporting oil and gas and for exchanging the petroleum products in order to meet the international and domestic needs specially that of the European Union countries .
This center gives a huge chance for Energy projects investment. Egypt’s potentials depend on:
1- The Strategic location:
Egypt’s Geographic location is close to the international markets of the European Union Countries; Middle East and Africa. Egypt has become the natural naval partner of the European Union countries through the Mediterranean and Red Sea which is executed through the fast passages project that connects the European Union with all overseas neighbor ports such as Alexandria and West Port Said Ports which have been included in the Passages Project. In addition to other promising ports on the Red Sea (Ras Shukhair, Al Adabia and El Sokhna Ports).
Elsokhna and Eastern tafreea are considered two naval axes from the five naval axes which link the European Union to its neighbors.
Egypt’s outstanding geographic location allows Egypt to have a bigger share of the international petroleum products and Natural Gas trade .
*Being near to crude oil and natural gas production areas in the Arab countries in Gulf area also in North and West Africa as well as in Caspian Sea.
The Suez Canal is one of the most important international naval routes, around 7.5% of the international daily trade of crude oil, Petroleum Products and liquefied is being transported through the Suez Canal.
The Sumid pipeline between Gulf of Suez and the Mediterranean Sea is considered one of the major pipelines which transport around 115 million ton of crude oil. Suez Canal along with Sumid pipeline transport 98% of Arab Gulf petroleum exported to the European Union and the United States . Egypt’s equity in Sumid Pipeline is 50% while the equity of Saudi Arabia, Kuwait, United Arab Emirates and Qatar is the remaining 50%. The participation of Sumid pipeline in transporting the international oil trade increased due to doubling the capacity of the line after linking EL Sokhna port on Gulf of suez with Sidi krir Port on the Mediterranean through two pipelines with total length of 320 km in order to transport crude oil to the European and American markets. Currently there are enlarging operations in storages and reservoirs in both Sidi krir and El Sokhna.
2- Developed and Successful Petroleum Industry
The Petroleum industry in Egypt is considered one of the oldest petroleum industries in the whole world, as it started at the beginning of the twentieth century. It currently enjoys high trained technical cadres and they have wide experience in searching, exploration and production as well as transporting and refining activities.
The current decrease in the trained technical cadres of oil and gas industry is representing one of factors that negatively affect the increasing of petroleum resources of the producing and consuming countries. Thus, the existence of these cadres in Egypt is considered an additional and national wealth which must be efficiently utilized in searching, exploration and production activities as well as innovating investing mechanisms to enlarge participation in these activities especially in neighbor countries (Sudan – Chad - Libya- Mauritania-Niger) aiming at securing extra resources for the similar to the policies of many other European and Asian countries such as Spain and China.
The Political and Economic Stability of Egypt and its Outstanding Relations with other countries
With the existence of the globalization there is a worldwide trade link especially because of the limited sources .Thus, Egypt has to utilize its capabilities by attracting more of the international and regional investments which are directed to the countries enjoying more economic and political stability. So we should use our outstanding and good relations with the international and regional communities to generate more investments in Energy and petroleum sector.
3- The infrastructure of Transporting and Storing Oil and Natural gas and the Possibility of developing it to meet the needs
Over the last decades, Egypt invested tens of billions of pounds in constructing national grids of pipes to transport crude oil, natural gas and the petroleum products from and to the seven existing refinery labs all over the Republic forming a complete system of pipelines to transport crude oil and petroleum products to storage tanks and exporting ports. In addition to pipelines to transport natural gas from its production fields to liquefying gas units, also there are lines for exporting the liquefied or the compressed natural gas. In addition to this, there is a basic structure for integrated electrical system composed of Generating stations and its needed fuel, grids and electrical switching stations as well as electricity lines and electricity distribution grids and all its linked main and sub controlling centers as well as communication systems
4- Sources for New and Renewable Energy:
Wind Energy represents a good alternative for producing energy in West of Suez Gulf and on Red Sea coast between Raas Ghareb and Safaga as well as East of El Owaynat in the Western Desert, as these areas are characterized by relatively steady wind activity in the West of Suez Gulf , El Alamain and Marsa Matrouh in the North Coast as the wind speed reaches 10m/second. Egypt is considered one of 30 countries over the world in which the Wind Atlas is issued.
The Solar Energy is considered as a promising alternative in Egypt as the number of sun rising hours in the remote areas varies between 2300 to 4000 hours per year. Electricity Generating Stations from solar energy was established in El Kuriemat, South of Cairo.