Forward-Looking Partnership Models for New Energy Investment Landscape

Forward-Looking Partnership Models for New Energy Investment Landscape

Egypt is increasing its liquefied natural gas (LNG) exports to help solve Europe’s energy challenges. The Ministry of Petroleum and Mineral Resources declared that Egypt aims to export $8.5 to $10 billion worth of natural gas during the fiscal year 2022/23. The third edition of the EGYPS Finance and Investment in Energy Conference provided insights from global energy experts on investment opportunities in light of Egypt’s strategic roadmap to establish itself as a regional energy trading hub and exporter of gas and LNG globally.

Capitalizing on Investment Opportunities

The current energy crisis has provided a great opportunity for certain regions to move their resources to the forefront of global energy distribution. Nasser Al Hajri, Senior Vice President Non-Operated Assets for Mubadala Energy provided his insight on this matter and how investing in the right technology is a key factor. Al Hajri says that “by 2050, oil & gas will still represent 50% of the energy mix. The energy transition is not easy, we should rely on technology that helps accelerate the process. All kinds of investments in hardware & software are required”.

Engineer Alaa Elbatal, Chief Executive Officer at Egyptian General Petroleum Corporation, provided a deep dive into the potential investment opportunities in the energy landscape. “We are now modernizing our activities to decarbonize our activities, so we are busy working on a lot of angles to fit with all models. We are keen on improving the investment environment & provide facilities to our partners,” Elbatal elaborated.

Ross Cassidy, Vice President Middle East, and North Africa for Welligence Energy Analytics, expresses his views on the Egyptian oil and gas landscape by mentioning that “Egypt has long been considered a very attractive investment destination for upstream oil & gas. The importance of the region has grown in the past year given the events and the tightness of the gas market. Digitalization will play a very important role on the emission reductions side.”

Solving Europe Gas Supply

While the European Union (EU) has been quick to tap into its natural gas reserves, its ability to maintain robust LNG imports and increase investments in alternative energy sources will be crucial in the coming years. Anastasios Vlassopoulos, CEO and Head of the E&P Business Unit of Hellenic Petroleum Upstream, gives his views on how to examine strategies to solve Europe’s gas supply problem over the short and long term. “We need gas as it is the only fuel that can be used everywhere across the value chain. We want to reduce the reliance on coal. It is important to take into consideration carbon capture & storage (CCS) in any operation,” said Vlassopoulos.

Rouzbeh Fazlinejad, Managing Director, and Head of MENA Oil & Gas of Houlihan Lokey provided his insight on the required investment needed to allow Europe to end its dependence on Russia. He indicates that “more investments must be made; however, investors prioritize the projects that they are going to invest in. Governments should put the right incentives into place as investors compare the returns from the traditional sources’ projects to source new upcoming projects”.

Paul Sullivan, Senior Vice President Global LNG & FLNG of Worley, discussed with other energy leaders the targeted investments needed to solve the European gas crisis. “We have been working on improving the carbon footprint of LNG in terms of production, transportation, and regasification for the last 6-8 years by spending around $10 billion. Improving technology on Carbon capture is a solution for improving carbon footprint. EU has provided support in many countries in Europe to build their projects”.

Dr. Lamia Abo Shahba, General Manager of Gas Market Activities at EGAS, acknowledges the need to secure alternative supplies amidst the current geopolitical unrest. “There is a need to start a dialog with the eastern Mediterranean region. We realized that our aspiration to reach Europe cannot be achieved without having the proper communications to make sure that we are unlocking the gas resources needed”.

Accelerating Decarbonization

With the world’s energy needs expected to grow dramatically over the next decade, governments are exploring new ways to secure energy supplies and infrastructure. Participants at a panel discussion, under the title “Accelerating decarbonization and energy security through public-private partnerships,” examined how public-private partnerships can help build long-term infrastructure projects while minimizing direct state capital spending.

Tameer Nasser, Managing Director Northeast Africa of Baker Hughes, mentioned: “The problem in decarbonization is to have the right business case. In some discussions with banks, the tone is changing toward the transition in the oil and gas field. They are now looking to finance the transition journey as a whole.”

Mateus Da Costa, Director of Exploration and Research Innovations of ANPM, stated that “Governments can play an important role by taking part in the direct investment through building partnerships. At the same time, international investors can bring new technology and knowledge to encourage and build these partnerships even more.”

David Chi, Vice President of Egypt Assets and Country Manager of Apache, said “Our industry is the main driver in how humanity progresses. We are one of the biggest drivers. We are the foundation for pharmaceuticals, agriculture, and other aspects of life. We need to continue to provide energy and produce it in a responsible manner. Financial institutions should not just demonize us, and everyone needs to look at it from a bigger picture.”



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