Europe Interested in Electrical Linkage with Egypt

EU Commission President Ursula von der Leyen, hugs EU Commissioner for Energy Kadri Simson, left, as Egyptian Minister of Petroleum Tarek El-Molla looks on, after a deal was signed between Israel, the EU and Egypt to boost East Mediterranean gas exports to Europe, in Cairo, Egypt, Wednesday, June 15, 2022. (AP)
EU Commission President Ursula von der Leyen, hugs EU Commissioner for Energy Kadri Simson, left, as Egyptian Minister of Petroleum Tarek El-Molla looks on, after a deal was signed between Israel, the EU and Egypt to boost East Mediterranean gas exports to Europe, in Cairo, Egypt, Wednesday, June 15, 2022. (AP)
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Europe Interested in Electrical Linkage with Egypt

EU Commission President Ursula von der Leyen, hugs EU Commissioner for Energy Kadri Simson, left, as Egyptian Minister of Petroleum Tarek El-Molla looks on, after a deal was signed between Israel, the EU and Egypt to boost East Mediterranean gas exports to Europe, in Cairo, Egypt, Wednesday, June 15, 2022. (AP)
EU Commission President Ursula von der Leyen, hugs EU Commissioner for Energy Kadri Simson, left, as Egyptian Minister of Petroleum Tarek El-Molla looks on, after a deal was signed between Israel, the EU and Egypt to boost East Mediterranean gas exports to Europe, in Cairo, Egypt, Wednesday, June 15, 2022. (AP)

Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker discussed with EU Commissioner for Energy Kadri Simpson ways to support and boost cooperation between the Egyptian electricity and renewable energy sector and the European Energy Commission.

The Commission is interested in ​​the electrical linkage between the EU, Africa, and the Middle East through Egypt.

Simpson praised the achievements of Egypt's electricity and renewable energy sector, expressing her desire to increase cooperation in various electricity fields, especially in renewable energy and green hydrogen.

She expressed the Commission's interest in completing a linkage project with Greece so that Egypt becomes a regional hub for energy exchange between Europe, Arab, and African countries.

For his part, Shaker praised the distinguished relations between the Egyptian electricity and renewable energy sector and the Commission.

He highlighted the achievements of the electricity and renewable energy sector, stressing interest in spreading the use of renewable energies.

The Minister pointed out the significant challenges Egypt faced in providing energy to the local market in the past and the efforts made to secure and sustain the electricity supply to meet demand.

Moreover, Shaker noted that the ministry is interested in renewable energies through an ambitious plan to produce around 10,000 megawatts in 2023.

He stressed that the electricity sector is working on improving and developing the transmission and distribution networks.

It also establishing networks to strengthen the national grid to contain the new capabilities added from renewable energy, reduce electrical losses in the network, and enhance linkage with neighboring countries.

The Minister noted that Egypt is linked with Jordan, Libya, and Sudan.

The ministry has signed contracts to award the electrical linkage project between Saudi Arabia and Egypt to increase the reliability of the electrical supply.

Cairo also signed memoranda of understanding to implement interconnection projects with Cyprus and Greece, making Egypt a regional hub for energy exchange with Europe and Arab and African countries.

The Minister indicated that cooperation is ongoing with international companies to start discussions and studies to implement experimental green hydrogen production projects in Egypt as a first step towards the possibility of export.

Green hydrogen would soon become a promising energy source, Shaker remarked, adding that a ministerial committee is currently studying hydrogen as a source of energy in Egypt.

Egypt is keen to support the efforts of African countries to access clean energy from renewable sources, he said.



BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)

Iraq and British oil giant BP are set to finalize a deal by early February to develop four oil fields in Kirkuk and curb gas flaring, Iraqi authorities announced Wednesday.

The mega-project in northern Iraq will include plans to recover flared gas to boost the country's electricity production, they said.

Gas flaring refers to the polluting practice of burning off excess gas during oil drilling. It is cheaper than capturing the associated gas.

The Iraqi government and BP signed a new memorandum of understanding in London late Tuesday, as Prime Minister Mohammed Shia al-Sudani and other senior ministers visit Britain to seal various trade and investment deals.

"The objective is to enhance production and achieve optimal targeted rates of oil and gas output," Sudani's office said in a statement.

Iraq's Oil Minister Hayan Abdel Ghani told AFP after the new accord was signed that the project would increase the four oil fields' production to up to 500,000 barrels per day from about 350,000 bpd.

"The agreement commits both parties to sign a contract in the first week of February," he said.

Ghani noted the project will also target gas flaring.

Iraq has the third highest global rate of gas flaring, after Russia and Iran, having flared about 18 billion cubic meters of gas in 2023, according to the World Bank.

The Iraqi government has made eliminating the practice one of its priorities, with plans to curb 80 percent of flared gas by 2026 and to eliminate releases by 2028.

"It's not just a question of investing and increasing oil production... but also gas exploitation. We can no longer tolerate gas flaring, whatever the quantity," Ghani added.

"We need this gas, which Iraq currently imports from neighboring Iran. The government is making serious efforts to put an end to these imports."

Iraq is ultra-dependent on Iranian gas, which covers almost a third of Iraq's energy needs.

However, Teheran regularly cuts off its supply, exacerbating the power shortages that punctuate the daily lives of 45 million Iraqis.

BP is one of the biggest foreign players in Iraq's oil sector, with a history of producing oil in the country dating back to the 1920s when it was still under British mandate.

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves -- among the largest in the world -- amounting to 96 years' worth of production at the current rate.