Egypt Daily News – Egypt’s Petroleum Minister, Karim Badawi, has announced a revision of the country’s renewable energy target, reducing it from 58% to 40% for the energy mix by 2040.
This change highlights the continued reliance on natural gas, which Badawi emphasized will remain a primary fuel source as Egypt seeks to increase discoveries and attract investments in the energy sector.
The announcement comes amid challenges in rebuilding trust with foreign oil companies, which have faced delays in receiving billions of dollars in dues due to Egypt’s hard currency shortages.
Badawi is engaging with global energy firms, such as Italy’s Eni, which plans to enhance production in the Zohr gas field by 2025.
Production from Zohr, once peaking at 3.2 billion cubic feet per day in 2019, has since decreased to 1.9 billion cubic feet per day as of early 2024, leading Egypt to import more gas from Israel and liquefied natural gas shipments.
Additionally, Egypt has seen an increase in imports of high-sulfur fuel oil, reaching 255,000 barrels per day in September, the highest level since at least 2016.
In response to economic pressures, the government raised fuel prices by up to 15%, with prices for different gasoline octanes and diesel experiencing significant increases.
Prime Minister Mostafa Madbouly indicated that while prices would be gradually adjusted, there would not be further increases in the next six months, contingent upon the stabilization of international oil prices.
