Egypt Launches EGYPS 2022 Amid Efforts to Transform Cairo into a Regional Energy Hub

EGYPS Ministerial panel in Cairo (Asharq Al-Awsat)
EGYPS Ministerial panel in Cairo (Asharq Al-Awsat)
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Egypt Launches EGYPS 2022 Amid Efforts to Transform Cairo into a Regional Energy Hub

EGYPS Ministerial panel in Cairo (Asharq Al-Awsat)
EGYPS Ministerial panel in Cairo (Asharq Al-Awsat)

The Egypt Petroleum Show 2022 (EGYPS) kicked off its fifth edition in Cairo with broad international participation, amid rapid steps to transform Egypt into a regional energy hub.

Egyptian gas plays a vital role in securing part of the energy needs of European countries by exporting surplus gas produced from gas fields or imported through the gas liquefaction stations in Idku and Damietta.

It increased Egypt's natural gas exports in light of the rise in global prices.

Egypt's Petroleum Minister Tarek el-Molla announced that the petroleum sector's exports increased 85 percent during the past year to reach about $13 billion.

Molla clarified that the unification of efforts must accompany Egypt's summit hosting.

He asserted that Egypt and African countries are committed to the Paris Agreement and all climate-related agreements, noting that African countries are among the nations that cause the least harmful emissions.

Meanwhile, the International Energy Agency (IEA) CEO, Fatih Birol, announced at the EGYPS 2022 conference that Egypt officially joined the agency as a member.

Birol praised Egypt's remarkable success stories, adding that Egypt, Africa, and the world are at a defining moment in energy and climate.

He affirmed complete support for Egypt in light of its hosting of the COP27 global climate summit and its leadership of Africa to come up with decisions from the conference that suit the continent, which suffers from significant challenges represented in the window for electricity and cooking by primitive means that result in disasters.

President Abdel Fattah El-Sisi attended a ministerial session on energy transformation and efforts to combat climate change in Africa in preparation for COP27 Climate Summit, held next November in Sharm el-Sheikh.

Commissioner for Infrastructure and Energy of the African Union Commission Amani Abo Zeid stressed that considering energy availability for African people is a priority in enhancing access and exploiting energy in manufacturing industries.

Abo Zeid indicated that about 900 million people in Africa use primitive cooking methods, which leaves serious health effects that lead to the death of about 400,000 annually.

She praised the "Decent Life" initiative and its services, noting the importance of unifying efforts and African cooperation.

The official called for benefiting from Egypt's capabilities and expertise, especially in natural gas delivery projects, and converting means of transportation to gas.

She referred to the successful launch of a single African energy market, which began last June and is expected to become the most significant global market for energy exchange by 2040.

For his part, Minister of Minerals and Hydrocarbons of Equatorial Guinea Gabriel Obiang Lima said that the African continent must have its green plans, reiterating that energy sustainability is essential as a priority that precedes the energy transition.

Lima stressed the importance of natural gas and a transitional fuel, similar to the Egyptian experience.

He expressed his aspiration to benefit from Egypt in leading African countries to promote the uses of green energy.



Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions
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Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil prices climbed on Tuesday reversing earlier declines, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support.

Brent futures were up 61 cents, or 0.80%, to $76.91 a barrel at 1119 GMT, while US West Texas Intermediate (WTI) crude climbed 46 cents, or 0.63%, to $74.02.

It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

In China, Shandong Port Group issued a notice on Monday banning US sanctioned oil vessels from its network of ports, according to three traders, potentially restricting blacklisted vessels from major energy terminals on China's east coast.

Shandong Port Group oversees major ports on China's east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

Meanwhile, cold weather in the US and Europe has boosted heating oil demand, providing further support for prices.

However, oil price gains were capped by global economic data.

Euro zone inflation

accelerated

in December, an unwelcome but anticipated blip that is unlikely to derail further interest rate cuts from the European Central Bank.

"Higher inflation in Germany raised suggestions that the ECB may not be able to cut rates as fast as hoped across the Eurozone, while US manufactured good orders fell in November," Ashley Kelty, an analyst at Panmure Liberum said.

Technical indicators for oil futures are now in overbought territory, and sellers are keen to step in once again to take advantage of the strength, tempering additional price advances, said Harry Tchilinguirian, head of research at Onyx Capital Group.

Market participants are waiting for more data this week, such as the US December non-farm payrolls report on Friday, for clues on US interest rate policy and the oil demand outlook.