Page 6 - DMEA Week 36

DMEA COMMENTARY DMEA

East Med ambitions

Egypt has stepped up efforts to expand energy ties with nearby states, despite
the hazardous geopolitical environment

EAST MED EGYPT has stepped up efforts to expand energy identifying the relevant players in Africa to part-
ties with other countries in the Eastern Mediter- ner or work with, and we are in talks with some
WHAT: ranean and Middle East over the last few weeks, sovereign funds,” Soliman told Bloomberg. He
Egypt is looking to via talks with Cyprus, Greece, Jordan and Iraq. did not name any of the countries in question,
establish new electricity, If these initiatives succeed, they could help but he did emphasise that Egypt was keen to
gas and oil links with the country achieve its ambition of becoming a maximise the use of its renewable energy capac-
countries in Africa and regional energy trading hub. However, the time- ity, which has been estimated at 50,000 MW.
Europe. line for the various projects under discussion “We have a competitive sustainable advan-
may be affected by the increasing complexity of tage in exporting electricity to Europe, the Mid-
WHY: the geopolitical environment in the East Med dle East and Africa,” he remarked. “We are keen
Talks with potential region. to tap industrial economies that are power-hun-
customers are taking gry and environmentally conscious.”
place at a time of rising Africa and Europe
tensions. Earlier this week, Ayman Soliman, the CEO Cyprus
of Egypt’s sovereign wealth fund, said that his Meanwhile, Egypt’s ambitions go beyond elec-
WHAT NEXT: country had begun discussions with potential tricity. Soliman was speaking just days after
Territorial disputes in the customers on its plan to export low-cost electric Arab News quoted a source inside the Egyptian
Eastern Mediterranean power to other countries in Africa and Europe. government as saying that Cairo had intensified
and conflict in Libya may “We are in talks with European infrastructure talks with Cypriot officials on preparations for
alter the timeline for investors, advisers and energy traders to assess the construction of a joint natural gas pipeline.
projects without derailing the viability and appetite” for Egyptian electric- The pipeline in question would run across
them completely. ity, he told Bloomberg in an interview published the bed of the Mediterranean from Aphrodite,
September 7. Egypt is capable of producing more a field discovered offshore Cyprus in 2011, to
than enough electricity to satisfy its own needs, Egypt’s northern coast. It would transport gas
and it could export its surplus to Europe via a from Aphrodite to the Idku and Damietta gas
subsea transmission line to Cyprus and Greece, liquefaction plants, which could then export it
he noted. to Europe or other markets in the form of LNG.
The parties have already agreed to lay this The Idku LNG plant is owned by Royal
cable, which will be known as the EuroAfrica Dutch Shell (UK/Netherlands, 35.5%), Petronas
line, at a cost of €2.5bn for the first stage. It is due (Malaysia, 35.5%), Egyptian Natural Gas Hold-
to be commissioned in late 2023 and will have an ing Co. (EGAS, 12%), Egyptian General Petro-
initial capacity of 1,000 MW. leum Corp. (EGPC, 12%) and Total (France,
But Egypt is not just looking north. “We are 5%). The Damietta facility, meanwhile, is divided

P6 www. NEWSBASE .com Week 36 10•September•2020