Pioneering Egypt’s vision for energy leadership in North Africa and the Mediterranean

In an exclusive interview with the EGYPES News, H.E. Eng. Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources, shares his vision for the energy sector and how the country is poised to consolidate its reputation as a leading energy hub.

Your Excellency, the Egypt Energy Show (EGYPES) is just 1 month away.  In what will be your first edition as Minister, can you tell us, how important is the show in terms of showcasing Egypt’s future energy plans?

EGYPES has evolved a lot over the past years. It is now considered the most important energy show in North Africa and the Mediterranean, providing an opportunity for the global energy community to reconnect with a wider network of key and international stakeholders to forge new face-to-face business relationships.

Held under the patronage of H.E. President Abdel Fattah El Sisi, the Egyptian oil and gas sector regards EGYPES as its window to the global energy industry as it offers world-class investment opportunities, intensifies the role of foreign investments and provides international and local participants a great chance to network, seek knowledge and conduct business with key organisations. Every year, this major platform aims to display positive results and demonstrate the progress achieved towards delivering the future of energy. I am eager to build on the huge success of the past editions and I am optimistic for EGYPES 2025 next February to discuss the upcoming opportunities and future of the oil and gas industry in light of the new energy trends.

The oil and gas sector has seen radical changes in the past years. As the newly appointed Minister, could you outline the strategies and incentives to further strengthen the sector’s role?

The global energy industry has witnessed severe turbulence over the past decade due to the impact of the pandemic and several geopolitical challenges.

In Egypt, we have always regarded the oil and gas sector as pivotal to the country’s development. It is one of the main contributors to Egypt’s GDP and the main source of energy with high potential to generate foreign currency. In spite of all the challenges, the sector was still able to accomplish major successes, geared towards achieving Egypt 2030 vision.

We worked in a more proactive way to achieve our vision: “to unlock the sector’s full value chain potential, ensure energy security, promote investment opportunities, achieve financial sustainability and for Egypt to become a leading regional energy hub”.

As the newly appointed Minister, I am fully aware of the global challenges that are strongly hindering our sector’s progress. However, I believe in the sector’s ability to overcome all these challenges, utilising its assets whether human, infrastructure, partner alliances and of course Egypt’s strategic location.

I would like to stress on the pledge of the new cabinet of Egypt under the leadership of the Prime Minister H.E Dr. Moustaf Madbouly, to actively work across ministries and authorities to accelerate investments.

Believing in the importance of digitalisation, the sector launched back in 2021 the Egypt Upstream Gateway (EUG) – which is a fully integrated online platform that enables seamless data access and offers the opportunity to explore new plays, prospects and evaluate basins’ potential.

We have already launched 7 bid rounds on the EUG since its establishment in 2021 and the 8th one is currently in place for 12 blocks in the Mediterranean and the Nile Delta areas.

Your Excellency, how is the Ministry modernising infrastructure and transforming the use of domestic resources to reduce dependence on energy imports?

Egypt’s goal is to play a prominent role in global energy trade flow and foster an environment that simulates better trade and business links among regional countries to ensure collaboration and alliance. A part of the sector’s strategy is based on modernising the infrastructure and upgrading the refineries and pipelines that supports Egypt’s potentials.

The sector is completing its refinery upgrading projects to leverage the refining capacities that are close to 40 million tons per year, by adding new conversion units and expanding capacities of existing refineries.

Egypt has significant storage capacities for petroleum products – the SUMED pipeline and the Suez Canal which connect the Red Sea with the Mediterranean are strategic trade routes for delivering energy commodities to international markets. There are 14 petroleum ports with an annual trading volume of more than 90 million tons, providing significant opportunities for trade and handling of petroleum products.

Egypt’s unique LNG facilities at Idku and Damietta over the Mediterranean coast with a total export capacity of 12 million tons annually, make it a ready-made solution for unlocking the region’s low carbon natural gas supplies to supply growing energy needs in EU and globally. With lengths reaching more than 8,000 km for main lines, Egypt also has an extensive natural gas grid, which is one of the largest and longest gas networks in Africa and the Middle East.

Egypt’s national gas grid covers the Nile Delta and Western Desert area, to the furthest point of the South Valley in Aswan, extending to Sinai in the East and along the coast of the Red Sea. Egypt also has two main gas pipeline connections with the East, which serves as a main point for gas trade with the East Mediterranean region.

Moving forward, the sector will continue working with all its partners in the region to enhance its performance and reinforce Egypt’s key role in the global map as a regional energy hub.