Egypt has been contributing positively to climate action movements and initiatives to face the challenges of climate change, while the Egyptian oil and gas sector has been at the forefront of Egypt’s decarbonization efforts. At last, the United Nations (UN) Conference of Parties (COP 27), which was held in Sharm El Sheikh in November, has given the oil and gas firms the opportunity to show their efforts and the role they can play in facing climate change. The Participation of the oil and gas sector in the summit’s activities, and especially in the Decarbonization Day, held on November 11, was a remarkable addition to the COP activities.

Decarbonization Day

Decarbonization Day has given oil and gas companies a voice in the climate action road mapping. Decarbonization Day was an ideal platform for global organizations, industry stakeholders, and energy companies to discuss and present their commitments, initiatives, and actions to improve the global climate situation, Minister of Petroleum and Mineral Resources Tarek El Molla stated as he concluded the Decarbonization Day activities in which oil and gas sector engaged in several panel discussions, meetings and agreements signings.

The activities of the day gave hydrocarbon leaders the opportunity to discuss energy transition feasibility, highlighting the importance of fossil fuels in the transition.

The oil and gas industry must be part of the energy supply guarantee solutions, with full commitment to applying carbon emissions reduction and the use of clean production technology, and support must be provided to achieve this, Siemens CEO Christian Bruch stated during the first-panel discussion in the Decarbonization Day.

The Decarbonization Day’s discussions of several topics, including the decarbonization challenges, supporting low-carbon development pathways for Africa and the developing world, ways of advancing the global methane pledge, efficiency achievements, EMGF decarbonization initiative, accelerating decarbonization, industries’ decarbonization journey, and decarbonization of the ministry of petroleum.

Green Cooperation

The Decarbonization Day did not only bring industry leaders together for discussions but these discussions were translated into cooperation. Egypt has taken the opportunity of COP 27 to sign a number of memoranda of understanding (MoUs) and agreements for green cooperation.

The MoUs came as an extension of the efforts launched by the Ministry to enhance the capabilities of the Egyptian oil and gas industry in the field of carbon reduction and environmental sustainability of projects, and to benefit from the best experiences and practices provided by international companies in this field, El Molla commented on the MoUs and agreements.

The Egyptian LNG Company signed a feasibility study agreement with the Bechtel-led Coalition, which includes Enppi, Petrojet, Baker Hughes, GE Digital, HSBC, and NBE. The study will evaluate the implementation of a zero-flaring system at the Egyptian LNG export terminal (ELNG) in Idku.

Moreover, the Egyptian Natural Gas Holding Company (EGAS) signed 6 MoUs and agreements for decarbonization. One MoU was signed with Shell Egypt with the aim of cooperating in establishing a framework for managing greenhouse gas emissions and reducing greenhouse gas emissions from the operations of all EGAS partners. Another MoU was sealed with SeaSplit Technologies, and General Electric (GE) to remove industrial carbon from the Gulf of Suez.

EGAS also signed one MoU with Egyptian General Petroleum Corporation (EGPC), and the French TotalEnergies Marketing Company in Egypt to cooperate with each other in evaluating the technical and economic feasibility of carbon removal solutions in the petroleum sector. Another MoU was signed with Microsoft Egypt to cooperate in developing the sustainability roadmap for EGAS.

Furthermore, EGAS signed an initial agreement with the Egyptian Petrochemical Holding Company (ECHEM), and the Japanese Toyota Tsusho Company to cooperate in developing a feasibility study for a project to produce blue ammonia as clean energy in Egypt.

Putting these agreements and MoUs into action, the Egyptian oil and gas sector is set to lead a clean energy transition that has fossil fuels in its core. This comes as the world agrees that a safe and feasible energy transition still needs hydrocarbon in its mix, which is reflected in holding the Decarbonization Day as a part of COP 27 in Egypt.