The government had accounted for all scenarios to prevent power outages during the Israel-Iran war, said Prime Minister Mostafa Madbouly, while stressing that the state has already taken significant measures, including securing essential supplies of gas, petroleum, and other energy resources to safeguard stability across the sector.
This came during the press conference Madbouly held on March 3 to review the implications of the American-Israeli operations in Iran. The conference was attended by Karim Badawi, Minister of Petroleum and Mineral Resources; Mahmoud Esmat, Minister of Electricity and Renewable Energy; Ahmed Kouchouk, Minister of Finance; Sherif Farouk, Minister of Supply and Internal Trade; and Diaa Rashwan, Minister of State for Information.
Madbouly stated that since the outbreak of the 12-Day War between Iran and the US last June, the state began taking proactive measures. These included bringing in Floating Storage Regasification Units (FSRUs) and working vigorously to increase local production of gas and all energy resources, in parallel with encouraging foreign companies to pump more investments to bolster domestic production.
The government worked on securing several FSRUs, increasing production capacities, and repaying a significant portion of the arrears owed to foreign partners to bolster confidence in the energy sector.
Madbouly revealed that Egypt has just concluded several contracts to procure gas shipments at preferential prices in cooperation with several countries and international companies; this is to ensure the security of energy supplies for the Egyptian state for a significant period to come.
Furthermore, he explained that these proactive moves have made the Egyptian state today, amidst the outbreak of war and the cessation of gas supplies from neighboring areas, ready, prepared, and capable of dealing with this matter. He sent a message of reassurance to citizens regarding the stability of the energy sector and the state’s ability to absorb the repercussions of the current crisis without compromising the services provided.
The repercussions of the current crisis are not limited to the uncertainty of its duration; they extend to a severe impact on supply chains and significant disruptions in vessel movements, Madbouly stated. Some maritime shipping lanes have become paralyzed, and gas production facilities are threatened with shutdowns—all of which, consequently, drives a sharp increase in global energy prices.
Madbouly explained that despite these challenges, the state’s plan is anchored in securing all possible energy sources. He assured both citizens and investors: ‘We are unaffected, and there will be no power outages or cessation of gas supplies to factories, thanks to the preparations the government has undertaken to navigate the repercussions of this stage.”
The Prime Minister pointed out that the state’s vision is anchored in diversifying energy sources in parallel with encouraging an increase in domestic production. He explained that the current year will witness the largest volume of exploratory wells ever drilled, as the petroleum sector aims to drill more than 106 new wells in cooperation with major international companies.
Madbouly pointed out that these operations are taking place in sites where companies estimate there is ‘promising potential for significant domestic production’ in the coming years. This will bolster Egypt’s position as a regional energy hub and secure the needs of future generations.
The Prime Minister emphasized that this crisis will have significant repercussions for the region and the entire world if the conflict drags on.
