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Gulf Insider
11-03-2025
- Business
- Gulf Insider
Egypt's Ambitious Oil And Gas Plans
Egypt plans to build a $7 billion petrochemical complex and launch new oil and gas auctions to boost domestic production. The country aims to enhance energy security and attract foreign investment, despite recent economic challenges and energy shortages. Egypt is balancing its fossil fuel development with renewable energy targets, though it has adjusted its green energy goals. Oil-rich Egypt has big plans for the future of its fossil fuel development with several major new auctions and investments planned for the North African country. A new $7 billion petrochemical complex and other major oil and gas investments are expected to reinvigorate Egypt's oil industry, although it may have to win back investor confidence following a disappointing financial year. Egypt is a major African fossil fuel producer, the second-largest non-OPEC producer of liquid fuels after Angola. It was also the second-largest producer of natural gas in Africa in 2022, after Algeria. The expansion of Egypt's gas production has been supported by the launch of operations at several major offshore fields over the past decade, including its Zohr gas field. However, Egypt's gas production has been forecast to fall in the coming decades as Zohr matures, as well as due to several recent exploration failures. In February, Egypt signed a framework agreement with U.K.-based Shard Capital and Saudi Arabia's Al-Qahtani Group to construct a $7 billion petrochemical facility in New Alamein City in the northwest of the country. The project will be overseen by a consortium, including members from Shard Capital, Al-Qahtani Group, and the UAE's Royal Strategic Partners. Once complete, it is expected to produce 3.1 million tonnes of eight different petrochemical products annually. Karim Badawi, Egypt's Minister of Petroleum and Mineral Resources, said that advanced technologies will be incorporated into the facility's design to reduce the impact on the environment. Badawi said the development is key to improving the value of Egypt's natural resources. The complex is expected to enhance Egypt's export capacity significantly. It is also expected to help deepen ties between Egypt, Gulf countries and the U.K. In March, Egypt's Ministry of Petroleum and Mineral Resources announced new investment opportunities, aimed at expanding exploration and production activities. The ministry plans to offer seven undeveloped fields in the Mediterranean and six exploration areas in the Gulf of Suez and the Western Desert. Companies can bid using the Egypt Upstream Gateway (EUG) over the next two months, until 4th May 2025. The ministry recently closed the bidding round for 13 exploration areas and mature fields, after several offers were received, which are currently being assessed. The combined investments from the previous auction could bring in more than $700 million in investments. In the new auction, the seven undeveloped fields are being offered in two clusters – the Aten, Merit, and Rahmat fields, as well as the Notus, Salamat, Satis, and Salmon fields. This approach is aimed at increasing investment returns, reducing production costs, and streamlining development and production processes. The government aims to boost Egypt's energy security through the expansion of the country's oil and gas industry. The largely untapped natural gas reserves in the Mediterranean are expected to help make Egypt more energy-independent in the future, as the national energy demand continues to grow. Egypt's President Abdel-Fattah El-Sisi views the country as a production and re-export hub for international markets. As host to the 2022 COP27 Climate Conference, Egypt also stated aims to expand its renewable energy sector. Before hosting COP27, Egypt pledged to increase renewable energy production to 42 percent of its energy mix by 2035, a target which it later moved forward to 2030. In June 2024, then-Electricity Minister Mohamed Shaker announced the ambitious target of an energy mix with 58 percent renewables by 2040. However, in October, the government revised its green energy target, reducing the figure to 40 percent of the energy mix. During the announcement, Petroleum Minister Karim Badawi said that natural gas will remain a vital part of the country's energy mix for several years. At the opening session of the Mediterranean Energy Conference 2024, Badawi stated, 'This is a message to all of us to work together to increase discoveries and attract more investments through the bids being offered for exploration, aiming to achieve new discoveries in the region, which holds more wealth, particularly natural gas.' Egypt's government is currently working to rebuild trust with foreign companies following the 2024 energy crisis. Following a sharp gas production decline, Egypt was forced to import billions of dollars' worth of gas cargoes to meet its national demand last summer. The energy ministry had to resort to load-shedding to keep its grid online as its gas supplies depleted and demand rose. As Egypt was facing a currency crisis, countries, including Saudi Arabia and Libya, stepped in to help Egypt fund the gas imports it needed. Egypt's pound experienced a devaluation of 60 percent between March and September 2024. In addition, Egypt reportedly accumulated around $6 billion worth of debt for gas and fuel supplies. President Sisi and Energy Minister Badawi now aim to attract new investments through the new oil and gas auctions, as well as reassure companies that already have operations in Egypt. Also read: Researchers Sniff Ancient Egyptian Remains, Make Surprising Discovery
Syyaha
23-02-2025
- Business
- Syyaha
Shard Capital Partners LLP leads landmark investment alliance to establish Egypt's first petrochemical complex in New Alamein
With investment of $7 billion, and 20,000 jobs Opportunity Shard Capital Partners LLP, in collaboration with UAE-based Royal Strategic Partners and Saudi Arabia's Al-Qahtani Group, has announced the signing of a Framework Agreement with Egypt's Ministry of Petroleum and Ministry of Investment to develop a ground-breaking petrochemical complex in the industrial zone of New Alamein City. In addition, Shard Capital is having initial discussions with Orascom Construction for the investment in the construction and operation of the complex outside battery limits on a Build Own and Operate basis. The project, with an estimated investment of $7 billion, is set to create 20,000 jobs during the construction phase and 3,000 permanent positions upon operation, supporting Egypt's economic development through job creation. This transformative venture will bolster Egypt's local economy, enhance Egyptian expertise in the petrochemical sector, and strengthen strategic ties between Egypt, the Gulf countries, and the United Kingdom. It aims to contribute to sustainable development while boosting Egypt's global industrial competitiveness. The project will establish an integrated complex with a production capacity of approximately 3.1 million tons annually of eight specialized petrochemical products. Using crude oil as its primary feedstock, the facility will include a refinery, and a mixed steam cracker unit designed to achieve one of the highest global conversion state-of-the-art complex represents a transformative step for the industry by employing cutting-edge global technologies to maximize production efficiency and convert crude oil into high-value end products. Additionally, it will significantly enhance Egypt's export capabilities in the petrochemical sector, playing a pivotal role in driving economic growth and strengthening global market complex will rely on the most advanced American and European technologies, including solutions provided by Honeywell and other leading global companies, ensuring maximum efficiency and sustainability while reducing waste and carbon Blain, Capital Markets Advisor at Shard Capital Partners LLP, said: 'Signing this agreement marks a historic milestone for Shard Capital LLP and reflects our deep commitment to advancing Egypt's petrochemical sector. We are proud to be part of this critical project that will revolutionize the industry by leveraging cutting-edge American and European technologies to ensure maximum efficiency in converting raw materials into specialized petrochemicals while delivering exceptional returns for both the complex and Egypt.'He added:'We are committed to implementing the highest environmental sustainability standards and minimizing carbon emissions. Our ongoing collaboration with U.S. partners on blue hydrogen production feasibility studies represents a step toward a more sustainable future.'Toby Raincock, CEO of Shard Capital Partners LLP, concluded: 'Through close cooperation with our esteemed partners in the UAE and Kingdom of Saudi Arabia along with the support of the Egyptian government. This complex will enhance Egypt's industrial capabilities, open new export markets, create extensive job opportunities, and drive economic development across the region. 'In addition, our legal team, headed by Yasser Hashem, Managing Partner of Zaki Hashem Attorneys, and assisted by Nour Ossama, Senior Associate, has been instrumental in getting us to this point and receives our heartfelt thanks.'
Trade Arabia
22-02-2025
- Business
- Trade Arabia
UK's Shard Capital in deal for $7bn Egypt petchem complex
Shard Capital Partners, an independent financial services company headquartered in London, in collaboration with UAE-based Royal Strategic Partners and Saudi Arabia's Al-Qahtani Group, has announced the signing of a Framework Agreement with Egypt's Ministry of Petroleum and Ministry of Investment for the development a ground-breaking petrochemical complex in the industrial zone of New Alamein City. In addition, Shard Capital is having initial discussions with Orascom Construction for the investment in the construction and operation of the complex outside battery limits on a Build Own and Operate basis. The project, with an estimated investment of $7 billion, is set to create 20,000 jobs during the construction phase and 3,000 permanent positions upon operation, supporting Egypt's economic development through job creation, said Shard Capital in its statement. This transformative venture will bolster Egypt's local economy, enhance Egyptian expertise in the petrochemical sector, and strengthen strategic ties between Egypt, the Gulf countries, and the United Kingdom, it stated. It aims to contribute to sustainable development while boosting Egypt's global industrial competitiveness. The project will establish an integrated complex with a production capacity of approximately 3.1 million tonnes annually of eight specialized petrochemical products. Using crude oil as its primary feedstock, the facility will include a refinery, and a mixed steam cracker unit designed to achieve one of the highest global conversion rates, it added. William Blain, Capital Markets Advisor at Shard Capital Partners, said: "Signing this agreement marks a historic milestone for Shard Capital and reflects our deep commitment to advancing Egypt's petrochemical sector." "We are proud to be part of this critical project that will revolutionize the industry by leveraging cutting-edge American and European technologies to ensure maximum efficiency in converting raw materials into specialized petrochemicals while delivering exceptional returns for both the complex and Egypt," observed Bain. This state-of-the-art complex, he said, represents a transformative step for the industry by employing cutting-edge global technologies to maximize production efficiency and convert crude oil into high-value end products. Additionally, it will significantly enhance Egypt's export capabilities in the petrochemical sector, playing a pivotal role in driving economic growth and strengthening global market position, stated. According to him, the complex will rely on the most advanced American and European technologies, including solutions provided by Honeywell and other leading global companies, ensuring maximum efficiency and sustainability while reducing waste and carbon emissions. "We are committed to implementing the highest environmental sustainability standards and minimizing carbon emissions. Our ongoing collaboration with US partners on blue hydrogen production feasibility studies represents a step toward a more sustainable future," he added. CEO Toby Raincock said: "Through close cooperation with our esteemed partners in the UAE and Kingdom of Saudi Arabia along with the support of the Egyptian government, this complex will enhance Egypt's industrial capabilities, open new export markets and create extensive job opportunities, and drive economic development across the region
Zawya
22-02-2025
- Business
- Zawya
UK-UAE-Saudi alliance plan $7bln petrochemical complex in Egypt
A UK-UAE-Saudi consortium has entered into an agreement with the Egyptian government to develop a $7 billion petrochemical complex in the industrial zone of New Alamein City, the consortium's lead firm Shard Capital Partners announced. The alliance, which includes the UAE's Royal Strategic Partners and Saudi Arabia's Al-Qahtani Group, has signed a framework agreement with Egypt's Ministry of Petroleum and Ministry of Investment for the project, a press statement issued by the London-based financial services firm said. The integrated complex will have a production capacity of 3.1 million tonnes annually, producing eight specialised petrochemical products, the statement said. It said the project is expected to create 20,000 jobs during construction and 3,000 permanent positions once operational. The facility will be designed to process crude oil and will include a refinery and a mixed steam cracker unit. The consortium is also in initial discussions with Orascom Construction for potential investment in the construction and operation of the complex under a Build, Own, and Operate (BOO) model. (Writing by SA Kader; Editing by Anoop Menon) (
