Egypt’s Petroleum Minister Says Investment Needed in both Fossil Fuels and Renewables

  • The Minister of Petroleum and Mineral Resources, Tarek El Molla, has said that Egypt is seeking investment in all aspects of energy production, whether in traditional fossil fuels or renewables.
  • Egypt, which hosted the UN climate conference COP27 in November, has committed to sourcing 42 per cent of its energy from renewable sources by 2030.

The Minister of Petroleum and Mineral Resources, Tarek El Molla, has said that Egypt is seeking investment in all aspects of energy production, whether in traditional fossil fuels or renewables. Mr El Molla said at the Egypt Petroleum Show in Cairo on Tuesday, “I cannot say that we will do one bucket on account of the other. We have to do them all. We need investments in exploration, we need investments in [the energy] transition, we need investments in renewables, we need investments in decarbonisation … We need investments in all aspects, and I wouldn’t prioritise any of them.”

Oil demand is set to reach 102 million barrels a day this year and increase to 110 million bpd by 2025, Opec Secretary General Haitham Al Ghais said at the opening of the industry conference on Sunday. The market disruption following Russia’s invasion of Ukraine a year ago has pushed up the prices of oil and natural gas, particularly in the heavily dependent European market.

Egypt, which hosted the UN climate conference COP27 in November, has committed to sourcing 42 per cent of its energy from renewable sources by 2030, from about 20 per cent currently. However, as the country suffers from the economic fallout of the Russia-Ukraine war, it is also looking for ways to solve its foreign currency crunch and maximise its natural gas exports as Europe looks for new energy suppliers. Mr El Molla said earlier this week that the state is planning to offer three international gas and oil tenders this year and has an “ambitious plan” to drill more than 300 exploration wells by 2025.

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