“Earth Guards” in an interview with Minister of Petroleum Tarek El Molla

“Earth Guards” in dialogue withMinister of PetroleumTareq Al-Mulla

When we talk about Egypt’s projects in the petroleum and natural gas sector, we will find success stories that speak for themselves, and a map of discoveries that dazzled the world.

About Egypt’s position on the global production map, major projects, as well as expectations regarding the new and renewable energy file. We had important questions that were answered at length by Engineer Tarek El Molla, Minister of Petroleum and Mineral Resources.

At the beginning of his speech, Al-Mulla highlighted projects in the energy sector, or petroleum and natural gas, that had a positive impact on the nation and had a good echo around the world, and among the most important of these projects at the level of research, exploration, and petroleum or gas production, the minister chose to talk about the “Zohr Field” project, about which he said: We are proud of it not because it is a large gas reserve, but because it took only 28 months to discover and extract, and this is compared to any similar project in the world that would have taken 5 years over At least, and there are countries that took 8 years.

One of the most important features of this project is the presence of participation from international companies such as the Italian company Eni and others, and thus this will market the project well. The period of 28 months to discover a field and extract from it is considered an achievement for the world. Therefore, the local and international companies that participated in the project, such as Schneider and Schlumberger, inform each other and also inform the international financial institutions. We find that international oil companies, international service companies, and international supplier companies are paying attention to the project. Egypt, and this is the application of the proverb: “Success comes with success.” Therefore, all companies began to be interested in opportunities to work with us in the field of research and exploration, or in the field of oil and gas in general.

Subsequently, several projects were completed, such as the North Alexandria Fields Project, the “Atoll” project, and other projects affiliated with Eni called “Baltim”.

We have transformed from a country that imported gas at more than $2.5 billion a year, to self-sufficiency and exporting to the world through liquefaction stations, or exporting to neighboring countries such as Jordan through a gas pipeline.

Al-Mulla added, saying: We have more than one form of gas for export. The first type: export in its raw state through regular pipelines between us and neighboring countries such as Jordan. The line passes through Sinai and descends in the Gulf of Aqaba.

The second type: liquefied gas. After exploration, it is liquefied and transported via ships to different countries.

The third type: it is compressed in cars, so it is compressed like stove cylinders at home, and the last type is introduced into industries not as a gas but as a raw material that enters into the composition of the product itself, in the form of fertilizers such as ammonia or urea, or it comes out in granular or liquid form, and is then exported. Therefore, we subjected it to value added instead of exporting it in its raw form, which is the least expensive and beneficial.

Noting that the export in the raw form is the least in quantity, and this is exported for the needs of our brothers in Jordan, and old contracts that we are committed to in support of our brothers.

The conversation touched on social contributions, especially in the national project “A Decent Life,” which Al-Mulla described as the largest in Egypt – in the current century – and confirmed his ministry’s participation in it, indicating that the first phase of it includes 1,413 villages, and natural gas will be delivered to these villages. He added: “The first phase includes about 4 million housing units, and this is a very large number, especially since we convert one million and 200 thousand housing units per year, in addition to 4 Millions of housing units, which are being worked on in the next three years.

The minister revealed during his interview with“Earth Guards”, that during the coming period 19 million housing units will be completed, which includes a population exceeding 70 or 75 million people who own natural gas.

Regarding the cost of this, he indicated that the cost of the first phase amounts to about 17 billion pounds, and as for his entry into the house, it will be done in installments, which amounts to 30 pounds per month.

In this regard, “Al-Mulla” spoke about his social responsibility initiative that he launched with a group of oil companies, as he confirms that “A Decent Life” was the energy of light for it, and he adds: We in the oil sector have a very large societal contribution, but people do not feel the social contributions we make, and society had to feel what we do.

Hence, I began to bring our companies together in a strategic framework that has priorities, whether local Egyptian companies or foreign companies. A working group was formed with a higher committee headed by me, and in accordance with the strategy that we set, the Sustainable Development Goals (SDGs), and in accordance with the United Nations – we have identified 10 main goals, and based on that we have set our priorities; These are: education, health, equality, and also the presidential initiative “A Decent Life.”

Our conversation with “Al-Mulla” branched out into the extent of the Ministry of Petroleum and Mineral Resources’ interest in iron ore, especially in Upper Egypt. He stressed that this falls within the scope of the Ministry’s role, and he continued: What we are currently working on is updating our maps, according to the current maps and field missions that were carried out previously, which indicate the locations of iron concentration in different areas of southern Egypt or the New Valley, seeking the help of some expert houses and consultants. So that they provide us with a plan; To confirm whether the iron is highly concentrated or not; We will refocus it by introducing complementary industries.

At the same time, we have phosphate that we are working on well. Instead of exporting raw phosphate – as we talked about gas – we worked on several value-added projects. So we made phosphate fertilizers and phosphoric acid. Because the world needs phosphate fertilizers.

In a recent context, he saw that the global energy crisis was an opportunity for Egypt; Because we currently have a surplus of gas that we export; The real opportunity was to exploit exports to raise our revenues.

Al-Mulla added, in fact, export is not our primary goal, but we are talking about alternative opportunities. That there is a surplus of gas that we can export and convert into added value and revenues.

In the same context, there was talk about the Regional Center for Gas Trade and Circulation; Egypt is the only country in the Eastern Mediterranean that possesses the infrastructure – namely liquefaction stations or export stations – and therefore the future of gas could have been in Lebanon or Gaza, and currently in Cyprus we extract it… All this is when it comes to us and we export it for the benefit of these countries or for the benefit of Egypt; Here comes the added value.

The minister took advantage of the conversation to send a message of reassurance to the citizen; They are currently working on an equation that includes all sides; Such as merchants, manufacturers, and exporters… He went on to say: We will take their opinion on this matter, as well as all the state agencies concerned with the matter, so that when we create an equation related to the commodity itself, natural gas, since it is an input, will have a price of “X,” and the price may rise or fall. After that, we will not price every 3 months or every month, but rather the equation will work automatically.

This will be done through community dialogue with owners of various industries. To agree on a specific pricing formula; To prepare their economic plan on its basis.

The Minister noted that this does not affect automobile gasoline, as the pricing committee will continue its work to determine it every 3 months, and people have become accustomed to that, and we have published its standards.

Before concluding, in his speech, he mentioned the expected hope of self-sufficiency and exports in oil and diesel, just like gas, and said: Self-sufficiency will happen soon through the refining complexes that we are about to complete; During the next two years – God willing – there will be local sufficiency of all our fuel needs of gasoline or diesel.