Page 48 - Issue 71

VOL.1 , ISSUE 71OL.1 , ISSUE 71
V ELITE

reserves were revised downward to just 309 Egypt should diversify fuels used in
bcm—only about a third of the 850 bcm electricity generation as well as the sources of
originally claimed by Eni in 2016. On top of the fuel itself. It should take the foreign and
that, Egypt has struggled to make timely energy policy of Turkey as an example. For
payments to investors. Compounding the decades, Turkey had to deal with the shortfall
risks, recent supply disruptions from Israel of local energy capacity in meeting local
suggest that Israeli gas exports could be used demand and exporting ambitions, the very
as leverage—even though Israel benefits from same problem that Egypt faces. Thus, Turkey
exporting to Egypt. This adds to the fragility pursued two strategies simultaneously: first is
of Egypt’s LNG ambitions, as even non- investing in local capacity of fuel generation,
domestic gas could be withheld at any time. second is forging international alliances with
The stakes extend beyond natural gas. both exporters, such as with Azerbaijan,

Egypt aims to ramp up electricity exports to Turkmenistan, Iraq, and Iran, and importers
1.5 GW per day and complete as well. Egypt must follow the same track, and
interconnection projects with Saudi Arabia, fast, or other countries will capture the
Sudan, Jordan, Greece, and Italy by 2030. opportunities. For example. Qatar and Turkey
The country is already linked to Palestine, are currently supplying Syria with gas and
Libya, and Sudan. However, many of Egypt’s electricity, an opportunity Egypt could have
power plants remain underutilized due to fuel captured, thanks to connection with Syria via
shortages. Without a reliable fuel supply, the Arab-Gas pipeline. But only if we had a
these interconnection projects could be seen more active flexible foreign policy, and stable
as impractical, and existing infrastructure gas supply!
may go idle. The issue lies not only in the
volume of available fuel but also in it
consistency, which is undermined by Egypt’s
overdependence on Israeli imports.

This instability also threatens Egypt’s
ambitions in clean hydrogen production.
While the country is pushing toward green
hydrogen, which requires significant water
resources, it also faces ongoing water scarcity.
Blue hydrogen, an alternative that uses
natural gas, is only viable if Egypt can secure
stable and affordable gas supplies. Thus, the
country’s broader energy and export goals are
inextricably tied to resolving its natural gas
crisis.

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