The Egyptian oil and gas industry, a cornerstone of the nation’s economy, faces the constant challenge of maximizing production efficiency while ensuring sustainability. In an era marked by increasing global energy demands and fluctuating market prices, the ability to optimize output is paramount. Technology and innovative practices have emerged as crucial catalysts in driving this efficiency. With innovation and commitment, the Egyptian government is leading the path towards energy efficiency in the oil and gas sector.
Egypt’s Energy Efficiency Route
The Egyptian oil and gas sector is adopting the Energy Efficiency Strategy 2022-2035. This initiative reflects the Ministry of Petroleum and Mineral Resources’ (MoPMR) commitment to enhancing the sector’s efficiency, competitiveness, and sustainability. The strategy prioritizes energy efficiency measures to decarbonize the oil and gas industry and strengthen Egypt’s energy security.
The strategy consists of two integrated and overlapping phases. The first phase (2022-2027) aims to achieve a 10% energy savings by 2027. The second phase (2025-2035) is implemented in parallel with the first phase to reach 18% energy savings 2035 (the national goal).
According to the Oil and Gas Modernization Program, energy efficiency in the petroleum sector can be achieved through various components, including the adoption of energy-efficient technologies to reduce costs and improve production.
Furthermore, innovation and advanced technologies play a key role in accelerating development processes and controlling costs in the energy and fossil fuel sectors. Egypt’s plans for CO2 emission reductions, supported by these advanced technologies, are also on track to be achieved on time. Additionally, innovation is essential for optimizing Egypt’s brownfields, ensuring maximized production and improved field operations.
Egypt’s Commitment to Energy Efficiency
The Egyptian government is committed to achieving energy efficiency and is taking action on multiple fronts to enable this goal. In September 2024, Minister of Petroleum and Mineral Resources, Karim Badawi, emphasized the importance of energy efficiency in generating significant savings that benefit both the state and its citizens, while also contributing to the achievement of sustainable development goals.
Badawi highlighted the petroleum sector’s efforts to strengthen cooperation with the private sector in executing key strategic projects. He also reiterated the ministry’s prioritization of energy efficiency initiatives aimed at reducing diesel and petroleum product consumption, which positively impacts the environment and helps lower the import bill for these products.
Accordingly, in October 2022, Egypt inaugurated the Center of Excellence for Energy Efficiency and Operational Performance. The center offers a comprehensive range of services, from conducting technical reviews of energy efficiency and economic feasibility studies to implementing energy consumption measurement processes. Additionally, it provides theoretical training and hands-on experience using equipment models, simulation programs, and virtual reality in various energy sectors.
In the meantime, MoPMR announced in July 2022 that it will implement an integrated program for improving energy efficiency in 31 petroleum companies, which saves EGP 813 million annually.
Egypt’s unwavering commitment to energy efficiency is a testament to its vision for a sustainable and prosperous future. By embracing innovative technologies and fostering collaboration between the public and private sectors, the country is poised to optimize its oil and gas industry. The Energy Efficiency Strategy 2022-2035, coupled with the establishment of the Center of Excellence, demonstrates a comprehensive approach to achieving these ambitious goals.
