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)
TT

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.



Expert: Türkiye Anti-inflation Steps Don’t Go Far Enough

People shop at a bazaar in Istanbul. Reuters
People shop at a bazaar in Istanbul. Reuters
TT

Expert: Türkiye Anti-inflation Steps Don’t Go Far Enough

People shop at a bazaar in Istanbul. Reuters
People shop at a bazaar in Istanbul. Reuters

Although Turkish inflation slowed in September, it is still raging out of control with the government avoiding difficult decisions that could help tackle it, experts told AFP.

Türkiye has experienced spiraling inflation the past two years, peaking at an annual rate of 85.5 percent in October 2022 and 75.45 percent in May.

The government claims it slowed to 49.4 percent in September.

But the figures are disputed by the ENAG group of independent economists who estimate that year-on-year inflation stood at 88.6 percent in September.

Finance Minister Mehmet Simsek has said Ankara was hoping to bring inflation down to 17.6 percent by the end of 2025 and to “single digits” by 2026.

And President Recep Tayyip Erdogan recently hailed Türkiye’s success in “starting the process of permanent disinflation.”

“The hard times are behind us,” he said.

But economists interviewed by AFP said the surge in consumer prices in Türkiye had become “chronic” and is being exacerbated by some government policies.

“The current drop is simply due to a base effect. The price rises over the course of a month is still high, at 2.97 percent across Türkiye and 3.9 percent in Istanbul.

“You can’t call this a success story,” said Mehmet Sisman, economics professor at Istanbul’s Marmara University.

Spurning conventional economic practice of raising interest rates to curb inflation, Erdogan has long defended a policy of lowering rates. That has sent the lira sliding, further fueling inflation.

But after his reelection in May 2023, he gave Türkiye’s Central Bank free rein to raise its main interest rate from 8.5 to 50 percent between June 2023 and March 2024.

The central bank’s rate remained unchanged in September for the sixth consecutive month.

“The fight against inflation revolves around the priorities of the financial sector. As a result, it is done indirectly and generates uncertainty,” explained Erinc Yeldan, economics professor at Kadir Has University in Istanbul.

But raising interest rates alone is not enough to steady inflation without addressing massive budget deficits, according to Yakup Kucukkale, an economics professor at Karadeniz Technical University.

He pointed to Türkiye’s record budget deficit of 129.6 billion lira (3.45 billion euros).

“Simsek says this is due to expenditure linked to the reconstruction in regions hit by the February 2023 earthquake,” he said of the disaster that killed more than 53,000 people.

“But the real black hole is due to the costly public-private partnership contracts,” he said, referring to infrastructure contracts which critics say are often awarded to firms close to Erdogan’s government.

Such contracts cover construction and management of everything from motorways and bridges to hospitals and airports, and are often accompanied by generous guarantees such as state compensation in the event they are underused.

“We should question these contracts, which are a burden on the budget because this compensation is indexed to the dollar or the euro,” said Kucukkale.

Anti-inflation measures also tend to impact low-income households at a time when the minimum wage hasn’t been raised since January, he said.

“But these people already have little purchasing power. To lower demand, such measures must target higher-income groups, but there is hardly anything affecting them,” he said.