As the industry moves from climate commitments to actions and continues efforts to decarbonize its oil and gas operations, the reshaping of markets, driven by new geographical supply and demand dynamics, continues at pace. During EGYPS 2023, the Strategic Conference addressed the current needs of the energy transition, being a key enabler to overcoming climate change and reducing dependence on limited energy sources.
dmg events President Christopher Hudson welcomed the attendees, highlighting the significance of the Egypt Petroleum Show (EGYPS). “No other event in the region brings together global influences on issues of strategic policy, investment, resilience, partnership, evolving energy supply and demand challenges, climate technology, and an acceleration and much more. This is a platform for the conversations that will energize the just energy transition, and a commitment to a sustainable, secure, and affordable low-carbon energy future for all.”
Hudson also announced that the next edition of the conference and exhibition will be Egypt Energy Show (EGYPES) stating that “this will not be forgetting our past, but embracing our future.”
During his opening speech, Minister of Petroleum and Mineral Resources Tarek El Molla noted that “EGYPS now is considered an annual global platform to ensure open conversations on an agenda that drives regulations, investments, security, transition, and innovation.”
Meanwhile, the Commissioner for Energy at the European Union (EU,) Kadri Simson, pointed out that “despite prices, we need to keep now a firm eye on where we are going, how to turn this crisis into a foundation for a more sustainable energy future.”
This conference highlighted the energy sector’s challenges and opportunities, particularly in Egypt, Africa and the East Mediterranean regions.
Redrawing the Global Energy Map
After the Strategic Conference opening, El Molla, Simson, along with H.E. Amani Abou-Zeid, Commissioner for Infrastructure and Energy at the African Union Commission (AU), had a remarkable session under the title of ‘Managing Supply and Demand in Volatile times – Supporting Global Economies and Energy Security’.
During the session, they discussed the importance of embracing an innovative agenda to support partnerships that drive growth across the energy value chain, supporting global economies and energy security, as they highlighted the geopolitical uncertainty and changing dynamics of the global energy trading system.
The second strategic session of the conference titled ‘Redrawing the Global Energy Map – Fast-Tracking Delivery and Creating New Routes to Market’ was a critical discussion on how to get new oil and gas supplies to the market in an efficient way, and how economies can safeguard themselves from relying on only one major supplier.
The session brought together distinguished leaders including John Christmann, CEO and President of Apache Corporation; Mario Mehren, CEO of Wintershall Dea; Mansoor Mohamed Al Hamed, CEO of Mubadala Energy; Lorenzo Simonelli, Chairman and CEO of Baker Hughes; and Antonio Pietri, CEO of AspenTech.
The EMGF’s Evolution Opens Up New Horizons for Regional Collaboration
Unleashing the great potential of the East Mediterranean Gas Forum (EMGF), an eye-opening discussion titled “New Beginnings – The Race to Exploiting East Med Gas” took place as part of the Strategic Conference to dig deep into the forum’s pivotal role in ensuring energy security, driving mutual economic prosperity and reducing the regional carbon footprints. This also goes in tandem with the forum’s broader vision to pave the way for regional importing and exporting countries to become partners and suppliers of choice.
The panelists also shared their reflections over the past six years and their aspirations for the upcoming six years in light of the evolving energy market.
During the discussion, Minister of Petroleum and Mineral Resources Tarek El Molla stated that EMGF is a dream that came true through a multi-phase process coupled with adequate infrastructure and policies. “Now, we are having a model that can be replicated and expanded. We are showing success.”
Meanwhile, the session witnessed the participation of Zafer Milhem, Chairman of the Palestinian Energy & Natural Resources Authority, and Walid Fayad, Lebanon’s Minister of Energy and Water, who praised Egypt’s tangible efforts to enhance regional collaboration.
The Palestinian official said though Palestine is one of the first countries that discovered natural gas in the East Mediterranean since 1999, its market is still underdeveloped, grappling with numerous challenges. In this regard, the official lauded Egypt’s effort to support Palestine, referring to the Memorandum of Understanding to deploy Egyptian companies to develop Marine Gas.
Decarbonizing the Industry
The strategic conference program included a global business leaders’ session ‘Decarbonizing the Industry’ which discussed building a winning downstream portfolio as well as the alternatives like renewable feedstocks and where they sit.
The discussion tackled the significance of methanol in today’s industries. Sumner indicated that methanol is essential for the renewable sector as it is used in solar panels, wind farms, and electric vehicles.
The Rise of Gas, LNG
The conference further tackled the balance between supply and demand, the development of African gas, as well as the rise of gas and LNG, discussing the global scramble in a tight market with soaring prices.
The attendees shared their insights on the current global trading environment. The event also highlighted the region’s agreements and partnerships to provide supply and be a hub for energy, as Egypt opens its additional capacity in the liquefaction plants for other countries in the region to export their production to Europe.
Moreover, the distinguished business leaders talked about pivoting from traditional oil and gas operations to new generation energy solutions – driving change through tough asset portfolio choices.
The talks further highlighted new technologies that shape the energy sector’s evolving market, drawing attention to the files of CCUS, methane reduction, flare recovery and reinjection, low-carbon hydrogen and energy management and efficiency, bearing in mind that more efforts are being expanded in these areas to increase momentum and advance decarbonization across the oil and gas value chain.
El Molla Calls for More Investments in Entire Energy Mix
At the end of the Strategic Conference at EGYPS 2023, Minister of Petroleum and Mineral Resources Tarek El Molla praised Egypt for hosting the conference, indicating that the “four days of activities are just a reflection of what Egypt is doing in the [realm] of energy.”
El Molla praised the country’s vision six years back when it called for the Egypt Petroleum Show (EGYPS) to be held in Egypt and succeeded in bringing together many energy leaders in one place for the sixth edition.
Talking about the energy sector’s needs for investments, the minister indicated that the entire sector with its diverse energy mix, consisting of both fossil fuels and renewables, needs investments. He pointed out that the world cannot exclusively focus on renewables and ignore other sources of energy, asserting that global markets still need an increase in fossil fuel production to sustain their needs. “Less investments means less production, that means higher prices, and it is going to be a vicious circle.” El Molla concluded. “We need the investments in all aspects and I wouldn’t prioritize any of them.”
