As a key element in the energy transition and a cleaner alternative to other types of fuels, Egypt’s natural gas has turned into the region’s new “black gold”. Rich in natural gas reserves and possessing the right infrastructure, Egypt is well on its way to championing the energy transition by achieving self-sufficiency and becoming a key regional hub for natural gas trade. None of this would have been possible without the economic policies that the Egyptian state has successfully put in place to build a sophisticated gas distribution system, featuring a series of both local and transnational pipelines, logistics networks, and stations that are fully equipped to cater to a variety of different needs.
With the nation’s increasing energy demands, Egypt’s natural gas distribution network has a vital role to play in ensuring all Egyptians nationwide have natural gas for all their essential needs. According to a recent study conducted by Egypt Oil & Gas based on an annual EGAS Annual Report from 2022/23, natural gas local consumption is at 2,136 bcf, averaging 5,853 mmcf/d. Research indicated that the electricity sector is the Egyptian economy’s biggest consumer of natural gas reaching 1,214.5 bcf, accounting for 56.85% of the market’s total consumption of this essential fuel. The industrial sector is also a significantly large natural gas consumer, making up 25% of total consumption.
Despite increasing demand, the state’s strategy to ensure effective gas distribution has had substantial success. On a local level, natural gas has significant milestones with natural gas deliveries reaching about 14.7 million housing units since the start of activity until the end of March 2024. According to a March 2024 report by Egypt Oil & Gas referencing figures provided by the Egyptian Ministry of Petroleum and Mineral Resources, compressed natural gas has been a key enabler in covert up to 39,500 to operate on a dual fuel system (including both liquid fuel and natural gas), bringing the total number of cars that have been converted since the start of activity to about 550,000 cars. As part of its economic strategy, the state is also in an ongoing effort to build natural gas stations nationwide to ensure that natural gas is easily available for consumers regardless of location. Heavy investment in the retail component of the gas distribution network has been a key enabler in adopting natural gas as an alternative fuel.
With the state emphasizing economic policies towards enhancing infrastructure, pipelines also form the backbone of Egypt’s natural gas distribution. Connected the Gulf of Suez to the Sinai, there are seven natural gas pipelines with a total capacity of approximately 835.8 million cubic feet per day (mmcf/d), according to a Research & Analysis report by Egypt Oil & Gas referencing Wood Mackenzie. It is important to note that two of these pipelines, Trans Gulf Gas and Zaafarana-Korimat, play a critical role in transporting gas that is to be pumped in two stations, the Ras Bakr Transmission Station and the Korimat Power Station.
Moving to the Nile Delta, Cairo, and Nile Valley, there are also 10 main pipelines, having a total length of 612 kilometers and a total capacity of 2,200 mmcf/d, according to research from Wood Mackenzie. These pipelines include Abu Madi-Talkha I & II, Talkha-Tanta-Cairo, Abu Madi-Damietta, Meadia-Damanhur, Alexandria Network-Damanhur, Damanhur-Tanta, Cairo Ring-Port Said Line, Korimat-Al Tebbin, and Korimat-Beni Suef. The Damanhur-Tanta line has the largest natural capacity with 700.1 mmcf/d.
Though it may seem desolate, Egypt’s Western Desert is rich with multiple natural gas pipelines, comprising seven pipelines that have a total length of 514 kilometers and connect several of the nation’s regions, including the Western Desert itself, the Mediterranean Sea, and Matrouh. These seven pipelines have a total capacity of 2,892 mmcf/d, according to Wood Mackenzie. Having a capacity of 950 mmcf/d and a total length of 231 km, the Tarek-Amerya gas pipeline is the biggest of the Western Desert pipelines, the report added.
Apart from providing natural gas for its citizens, pipelines also play a significant role in not only transforming the nation into a natural exporter but also a regional hub for this essential transitional fuel. Of the most important pipelines in this regard is the Arab Gas Pipeline (AGP) connecting Syria, Jordan, and Lebanon with Egypt’s essential gas supply with a capacity of 10 billion cubic meters per year (bcm/y), according to the sources from the Jordan’s Ministry of Energy and Mineral Resources. The East Mediterranean Gas (EMG) Pipeline, also known as the Arish-Ashkelon Pipeline, has also played a significant role in promoting gas trade on a regional level. In May 2023, an additional 65-kilometer onshore pipeline was approved to be built which will connect the Negev desert to the Egyptian grid near Nitzana with a capacity of 580 mmcf/d, which further enhances Egypt’s position as a natural gas trading hub.
Significant investments in digitalization have been a critical component in centralizing all elements of the infrastructure that is required for natural gas distribution, both within Egypt and throughout the region. The newly developed SCADA system has become and will continue to be a key enabler in monitoring the distribution in ways experts would have never known were possible. Though there have been significant challenges, the Egyptian state has been able to overcome them by adopting a clear strategy and decisive action to achieve positive results, a pattern that has paved the way for Egypt’s success in the future.
