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Egypt Takes Measures to Improve Energy Efficiency, Saves $42M Annually

An oil refinery in Alexandria, Egypt. (Asharq Al-Awsat)
An oil refinery in Alexandria, Egypt. (Asharq Al-Awsat)
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Egypt Takes Measures to Improve Energy Efficiency, Saves $42M Annually

An oil refinery in Alexandria, Egypt. (Asharq Al-Awsat)
An oil refinery in Alexandria, Egypt. (Asharq Al-Awsat)

Egypt has managed to save EGP813 million ($42.4 million) annually by adopting measures to improve the energy efficiency in 31 petroleum companies.

In a statement on Monday, the Petroleum Ministry said the country’s petroleum and mineral resources sector is implementing an integrated work program to improve energy efficiency in all petroleum work sites and headquarters.

The move comes in line with the Fourth Program for Rationalizing and Improving Energy Efficiency within the Petroleum Sector Development and Modernization Project.

The Ministry said there are several ongoing investment projects to raise the energy efficiency, with total investments amounting to about $1.5 billion, to achieve energy savings and reduce carbon dioxide emissions at the Suez Oil Processing Company (SOPC) and the Dahshour compressor station at the Egyptian Natural Gas Company (GASCO).

Five technical reviews of energy efficiency are also currently being carried out, in cooperation with the European Union and the Japan International Cooperation Agency (JICA) in the Assiut National Oil Processing Company (ANOPC) and the Egyptian General Petroleum Corporation (EGPC).

They aim to open up new opportunities that could help in implementing investment projects to improve energy efficiency, the statement added.

Egypt has also joined the Global Methane Pledge Energy Pathway, through which it will seek to boost efforts to reduce methane emissions from the petroleum sector.

In June, President Abdel Fattah al-Sisi announced that his country joined the Global Methane Pledge initiative.

Based on the expertise and funding provided by the initiative, Egypt, in cooperation with the European Bank for Reconstruction and Development (EBRD), is “currently carrying out assessments and measurements of methane and volatile organic compound emissions from oil and natural gas facilities in seven sites affiliated with GASCO, Rashid, Egyptian LNG, Pharaonic Petroleum Company (PhPC), and Petroleum Pipelines Company (PPC) to determine measures and projects to reduce these emissions.”

The Ministry is also studying a plan to establish a center to improve energy efficiency and operational performance.

During the fifth Edition of Egypt Petroleum Show (EGYPS 2022), the Engineering for Petroleum and Process Industries Company (Enppi), Egyptian Projects Operation and Maintenance (EPROM) and JICA signed a memorandum of understanding to benefit from the international best practices in this regard, particularly in Japan, India and Thailand, the statement explained.

The statement further noted that Petroleum Minister Tarek El Molla issued a decision to form the higher committee for rationalizing and improving energy efficiency in the petroleum sector.

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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.