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EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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Presentation on theme: "EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)"— Presentation transcript:

1 EGAS Egyptian Natural Gas Industry

2 Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM) Egyptian Mineral Resources Association E. M. R. A EGAS Egyptian Natural Gas Holding Company (EGAS) Egyptian General Petroleum Corporation (EGPC) Organization of Egyptian Oil Sector

3 EGAS About EGAS EGAS, the Egyptian Natural Gas Holding Company, was established in August 2001, under Law 203, to focus on all aspects on Natural Gas. With integrity, operational excellence and financial strength, the goal is to achieve sustainable growth to become a major contributor to the Egyptian economy. EGAS is engaged in a wide range of activities including upstream exploration and gas production, midstream gas processing, gas transmission and pipelines and downstream gas liquefaction, marketing of liquefied natural gas for export, and gas distribution in the domestic market

4 EGAS Strategy  Maximize Natural Gas Reserves & Production.  Satisfy Local Natural Gas Demand.  Maintain a robust Gas Network.  Maximize Revenues through the whole gas value chain.

5 Early Gas Discoveries: 1967 First Gas Production: 1975 Egyptian Natural Gas Industry History

6 Natural Gas Share of Total Hydrocarbons Production (2008 / 2009) Total Hydrocarbon Production 2008/2009 = 89 MTOE Total Hydrocarbon Production 1998/1999= 52.5 MTOE 13 MMTOE 55 MMTOE 425 %

7 EGAS N. E. Med. Deep Water SHELL EGAS Concessions Mediterranean, Nile Delta & N. Sinai 33°27°25° 34° 33° 32° 31° 30° EASTERN DESERT SINAI WESTERN DESERT 35° N S E W 100 m m m. 100 m. CAIRO 29°31° Restricted area Tinah IEOC 2000 m. M E D I T E R R A N E A N S E A EGAS 2000 m. 23 EGAS Agreements 15 Under EGAS Supervision N. El Maghara PETZED DISOUQ RWE EL QAR’A IEOC Abu Madi EGPC El Fayrouz IEOC W. Med. Sea development Block 1 HESS ROSETTA DEV. LEASES Rommana SIPETROL Tanta RWE W. ABU MADI IEOC KHILALA IEOC W. MED. DEEP WATER bp N. ALEX. DEV. LEASES bp EDDM DEV. N. Hap’y GSPC N. El Burg bp / IEOC Tinah IEOC El Arish offshore THARWA N. Port Said IEOC El Burg BG WASTANI & E. ELWASTANI DEV. LEASE Thekah IEOC / THARWA El Arish Tanta Alexandria DEV. N. Bardawil El Dabaa offshore STATOIL Ras El Hekma offshore STATOIL Obaiyed offshore OMV El Dabaa Matruh El Manzala CENTURION W. El Qantara CENTURION W. El Manzala CENTURION N.W. DAMIETTA SHELL BALTIM E. IEOC BALTIM S. IEOC BALTIM N. IEOC El Temsah IEOC Denise El Temsah Karous El Burullus bp Seti Plio bp Ha’py Seth Dev.leases bp Luzi Dev. Dev. WDDM BG W. Baltim offshore IEOC N. E. BALTIM IEOC 1000 m. W.El Burullus GAZ DE FRANCE El Qantara MERLON Tao/ Kamose PERINCO Thekah Dev. Lease El Manzala BG Port Said El bougaz IEOC N. Tineh Offshore bp East EL Burullus Offshore N. Damietta Offshore N. Gamasa Offshore Open Areas Restricted Area 3 New Agreements N. Idku. RWE N. EL AMRIYA RWE Restricted area Sidi Abd El Rahman offshore EDISON Dabayaa Dev m. 100 m m. El Mansoura MERLON

8 EGAS Operating Companies with EGAS 29 Companies & 18 Nationalities EGAS Melrose Petzed Centurion Alkor GSPC Petronas Sonatrach Statoil HESS OMV Tharwa Geo Global RWE GDF Dana Pet. Sipetrol Edison Centrica bp Eni Kufpec Shell BG El Paso Novatek Enel PTTEP Total UK France Perenco Italy Egypt India Netherlands Malaysia Canada USA Austria USA Norway Russia Germany Barbados Chile Thailand Algeria Kuwait

9 Distribution of EGAS Concessions in Mediterranean, Nile Delta & N. Sinai Nile Delta & N. Sinai Km % Mediterranean Km % Open Areas Km % Protectorate & Restricted Area 7601 Km 2 3.9% Total Areas ~ Km 2

10 Petroleum Exploration Evolvement, Number of Agreements & Amendments (1980 – 2008)

11 Development of Natural Gas Agreements & Amendments (1999/ /2009) 27 gas Agreements has been signed during that period in addition to the amendment of other 22 with a total of 49 agreements. This resulted in 157 gas discoveries in the Mediterranean, Nile Delta and the WD which added 41 TCF to gas reserves and 550 million bbl of condensates.

12 EGAS 33°27°25° 34° 33° 32° 31° 30° 35° N S E W 100 m m m. 100 m. CAIRO 29°31° Restricted area Tinah IEOC 2000 m. Restricted area 3000 m. El Arish Port Said Tanta Alexandria El Dabaa Matruh 1000 m. El Qantara MERLON 24 Gas Discoveries (July 2008 – June 2009) Total Added Reserve 3580 BCF – 148 MMBBLC 100 m. E.Dikirnis-1 St EL MANSOURA –EL MANSOURA Qawasim (Miocene) Salma Delta -1,2 Centurion – W.Qantara Abu Madi Fm (Miocene) Add Res. 207 BCF 4.1 MMBC S.Sidi Ghazy-1 RWE- DISOUQ Abu Madi (Miocene) Add Res.: 43.5 BCF Rahamat-1 St.2 BP- Burullus offshore Qantara Fm (Miocene) Add Res.: 408 BCF 44 MMBC Taurus West-1 BP-N.Alex(1) offshore Kafr El Sheikh (Pliocene) Add Res.: 49 BCF N.W.Khilala-1 St RWE- DISOUQ Abu Madi (Miocene) Add Res.: 50 BCF N.Dikirnis-1 EL MANSOURA –EL MANSOURA Qawasim (Miocene) Add Res.: 1.4 BCF MMBC N.Alex B-3 BP-N.Alex(2) offshore Kafr El Sheikh (Pliocene) Add Res.: 242 BCF Ji 50-2 Bp-WMDW Kafr El Sheikh (Pliocene) Add Res.: 520 BCF Sondos-1,2 CENTURION – W. EL MANZALA Kafr El Sheikh (Pliocene) Add Res.: 26 BCF Azhar-1 CENTURION – W. EL MANZALA Qawasim Fm (Miocene) Add Res. 111 BCF 2.8 MMBC S. Khilala-1 EL MANSOURA –EL MANSOURA Qawasim (Miocene) Add Res.: 24 BCF 0.06 MMBC Tulip -1 Centurion – W.Qantara Abu Madi Fm (Miocene) Add Res. 20 BCF 0.4 MMBC NW. Sidi Ghazy-1 RWE- DISOUQ Abu Madi (Miocene) Add Res. 25 BCF SE. Sidi Salem-1 RWE- DISOUQ Abu Madi (Miocene) Add Res BCF EL Basant-1,2 CENTURION – W. EL MANZALA Qawasim Fm (Miocene) Add Res.: 126 BCF 3.9 MMBC Disouq- 2 RWE – DISOUQ Abu Madi (Miocene) Add Res. 59 BCF Qantara - 4 El Mansoura – El Qantara Tinah Fm (Miocene) Proven Reserve Dekhila -1 Nalbetco - W. Med (B-1) Kafr El Sheikh – Abu Madi Add Res.: 72 BCF N.Alex B-2 BP-N.Alex(2) offshore Kafr El Sheikh (Pliocene) Proven Reserve Falcon -2 Khalda –Matruh L. Safa – Alam El Bueib Add Res.: BCF 0.51 MMBC

13 EGAS Egas Agreement Status for First and Second Exploration Phases - Financial Expenditures:1313 MM$ - Total 3D Programs : Km 2 - Total 2D Programs : 3268 Km - Drilled Wells : 37 - Discoveries : 21 - Success Ratio: 57% - Added Reserves: 3.4 TCF : 210 MMBC

14 °30 N S E W 100 متر 1000 متر 2000 متر 3000 متر 1000 متر 200 متر 3000 متر 2000 متر 1ب1ب 4 A 1أ1أ °31 °32 °33 °34 °25°27°29°31°33°35 Oil Fields Natural Gas Fields Gas & Condensates Sinai Western Desert Eastern Desert القاهرة Mediterranean Sea El Arish بورسعيد الأسكندرية مطروح الضبعة Suez 4ب4ب 4جـ 4د4د 3 Aأ 3ب3ب متر 1000 متر 100 متر 1000 متر 2000 متر منطقة موانئ محظورة منطقة موانئ محظورة Commitment 13 Wells three-dimensional Seismic survey 5050 Km 2 Total Financial commitment U$ 926 Million Exploration Term 6 years Total Signing bonus U$ 88 Million Gamasa North Marine(BG) Financial commitment: U$ 78 million Seismic survey: 150 km 2 (three-dimensional) Digging wells: 2 wells Exploration term : 6 years Signing bonus: U$ 11 Million Tenia North Marine (BP) Financial commitment: U$ 320 million Seismic survey: 1600 km 2 (three-dimensional) Digging wells: 3 wells Exploration term : 6 years Signing bonus: U$ 21 Million Damietta North Marine (BP/Shell/Petronas) Financial commitment: U$ 353 million Seismic survey: 1100 km 2 (three-dimensional) Digging wells: 4 wells Exploration term: 6 years Signing bonus: U$ 51 Million Brullus East Marine ( Total/Enel) Financial commitment: U$ 175 million Seismic survey: 2200 km 2 (three-dimensional) Digging wells: 4 wells Exploration term : 6 years Signing bonus: U$ 5 Million Results of International Bid round (2008)

15 EGAS  Water Depth  Rig availability  Sub-sea well completion.  High Pressure - High Temperature wells. Technical Development Challenges:

16 Natural Gas Proven Reserves Development (1981/ /2009) Proven Reserves Increased about 10 times

17 EGAS Growth of Gas Reserves & Cum. Production TCF Percentage of Production Replacement in 2008/2009 = 157% Added Reserves = 57.8 TCF

18 Proven Reserves 77.2 TCF 123 Prospect (Location of High Propriety) Economic Evaluation Stage Total Locations = TCF (38%) 43 TCF (62%) Expected Reserves 69.6 TCF Distribution of Expected Reserves 212 Lead (Location of Low Propriety) Need More Studies

19 Gas Production 6.8 BCF/D Gas Sales 6.3 BCF/D LPG Production 3.7 K Ton/D Propane Production 1.7 K Ton/D C 2 /C 3 mix Production 1.5 K Ton/D Condensates Production 120 KBL/D

20 Natural Gas Production Development (1981/ /2009) Production Increased about 24 times

21 Average Annual Growth Rate = 14.4% Growth = 330 % Planned MMCF/ D

22 Production of Condensates and LPG (2000/ /2010) Condensates LPG Thousand bbl/d Thousand Ton/y

23 Production Enhancement through New Projects in 2008/2009  Total Projects Number: 21 (33 Wells).  Average Daily Production Rate: Natural Gas 474 MMCF Condensates 3974 Barrels Total Investments U$ 3.25 Billion. Developed Reserves 5.6 TCF & 6.2 Million Barrels Condensates.  Total Projects Number: 21 (33 Wells).  Average Daily Production Rate: Natural Gas 474 MMCF Condensates 3974 Barrels Total Investments U$ 3.25 Billion. Developed Reserves 5.6 TCF & 6.2 Million Barrels Condensates.  Total Wells Number: 15 Wells.  Average Daily Production Rate: Natural Gas 142 MMCF Condensates 4712 Barrels  Total Wells Number: 15 Wells.  Average Daily Production Rate: Natural Gas 142 MMCF Condensates 4712 Barrels  Total 48 Wells  Average Daily Production Rate: Natural Gas 616 MMCF Condensates 8686 barrels  Total 48 Wells  Average Daily Production Rate: Natural Gas 616 MMCF Condensates 8686 barrels New Projects 77% Developed Wells 23%

24 EGAS 29 Different Gas Facility  16 Low Temp. Separator “LTS” Facilities…6800 MMSCFD  9 Liquefied Petroleum Gas “LPG” Facilities…1800 MMSCFD  2 Natural Gas Liquid “NGL” Facilities…1700 MMSCFD  2 Liquefied Natural Gas “LNG” Facilities…1870 MMSCFD  LPG : 1.4 MM ton / year  Condensate : 43.5 MM bbl / year  Propane : 635 MTON  Ethane / Propane : 476 MTON Total : 7.72 MM TON With total average production

25 Baltim Damietta Talkha Shabshir Tanta Oyoun Moussa Sadat City Abu Zaabal 10 of the Ramadan Dahshour Tebbin Suez City Gas Zafrana City Gas Koraymat Nile Valley Co. 6 October Alexandria Sedi kreir Ameriya Mahmudya Egypt Gas Tarek EL - Obyed Salam South Om Barka Matruh Abu Sannan Abu El Ghradik Bed-2,3 Ras Bakr Ras Shoukir EL - Shabab Abu Sultan Asiout Beni Suef ELMenia Cairo Hapy Ameriya Cement Borg Elarab Abu Hommos Abu Madi EL sheikh zowayed Port Fouad Port Said East Port Said P.S P.S Arish Cement Sinai & Ind. Area ElQara To Eastern pipeline Taba Arish 24 ”- 45 km 36 ”-194 km 24 ”-145 km 16 ”-165 km 16 ”-22 km 42 ”- 40 km 24 ”-50 km 32 ”-167 km 32 ”- 85 km 24 ”- 215 km 16 ”- 114 km 32 ”- 75 km 16 ”-192 km 18 ”-162 km 16 ”-256 km 24 ”- 25 km 22 ”- 87 km 16 ”-38.5 km 28 ”- 46 km 20 ”- 65 km 32 ”-170 km 30 ”- 28 km 22 ”- 40 km 12 ”- 40 km 28”-118 km 28 ”- 86 km 24 ”- 45 km 32 ”-200 km 24 ”-22 km 12 ”-14 km 22 ”- 40 km Existing. P/L Under Cons. P/L Under Study. P/L Gas Fields Off Shore Facilities Distribution Station Power Station Industrial Area Gas Fields On Shore Mediterranean Sea Western Desert Western Desert Sinai Abu Qir Scarab/ Saffron Rosetta Abu Qir Year : Capacity: MMSCM/D Length : Km (High/ medium/ low pressure) - Total Investments are about U.S $ 2.1 Billion - Total N.G Expansion investments during 2009/2010 are about U.S $ 275 Million - Still planned to add 5 lines about 280 km with approx. cost of LE 1.5 Billion during the current Fiscal Year Currently N.G Reached All Areas in the country

26 Exports Total Consumption

27 GR = 9.2% 41.6 BCM

28 * Industry includes Cement, Fertilizers, Iron, Refractory &other industries, Petrochemical & methanol 2008/2009 Total Consumption = 41.6 BCM Natural Gas Consumption Pattern (1998/ /2009) 1998/1999

29 Natural Gas, LNG & Propane Exports & Sales Revenues Natural Gas Propane LNG Quantity= 45.4 Million tons 31.2 Million tons14.2 Million tons Value= 5597 $ Million 2274 $ Million 12.7 Billion LE 3323 $ Million

30 EGAS History of Residential Connections Number of Customers (Thousand) Customers Connection Rate 50 Thousand Customers per year 3.47 Customers (28 Governorates) Connection Rate 250 Thousand Customers per year

31 Number of Connected Industrial Customers (1999/ /2009) Total (till June 2009)= 1547 Customers

32 Completed Pipelines Projects:  Taba-Sharm Elsheikh  Ras Shukair - Hurghda Ganop El Wadi Pipeline: Total Length: 920 Km Total Investment: 5.7 Billion LE The pipeline reached Aswan by November 2009 and is expected to be commissioned by December Koraiemate Dahshour Luxor Aswan Benisuef ِ Assuit El-Menia 148 Km 145 Km 121 Km 380 Km Sohag 28 Km 90 Km 36`` 30`` 32`` 30`` Phases Completed Taba Sharm Elsheik Hurgada Ras shukair Kina

33 Working Companies : 6 Fueling Stations : 119 Conversion Centers : 62 Sales Gas : 35 MCM /Month

34  Contract was signed in July  One train of a total capacity of 7.6 BCM annually (4.8 million tons LNG).  Investment: over US $ 1.3 billion (EGAS 20% & UF 80%)  Operation: end of  Total exported quantity 15.6 Million Ton (264 Shipments) Export of the first LNG Cargo: Jan. 20, 2005 LNG Projects First Project with Union Fenosa (at Damietta):

35  Contract was signed in April  Two trains of total capacity 12 BCM annually (7.2 MM tons).  Investment: US $ 1.9 billion  Investment Shares:  EGPC & EGAS 24%,  BG, Petronas 35.5% each,  GDF 5%  Operation: mid  Total exported quantity 27.5 Million Ton (476 Shipments) Export of the first LNG Cargo: May 2005 Export of the first LNG cargo from train two: Oct 2005 Export of the first LNG Cargo: May 2005 Export of the first LNG cargo from train two: Oct 2005 The Second Project with BG, Petronas, GDF, EGPC & EGAS (at Idku):

36 LNG Export (2004/ /2009)

37 EGAS 37 Egypt’s LNG Export 3 Italy 190 US 7 Twain 1 Turkey 26 Mexico 13 UK 300 Spain 100 France 56 Japan 62 S. Korea 14 India 7 Greece 2 Norway 4 Belgium 795 Cargos exported to 17 countries up to the end of November Cargos exported to ASIA Countries Include 14 Cargos exported to India 3 China 1 Argentina 1 N. Korea

38 "Methane Nile Eagle" The First Egyptian LNG Carrier Capacity: 145,000 m 3 Length: 272 m Maiden Voyage: 2007  Manufacture: Dec  9 voyages till today.  Transported quantities of LNG: about 1.2 BCM ( More than 0.5 MM tons

39 World’s Top Ten LNG Exporters Source: Eni’s World Oil and Gas Review, 2008 for the years till 2007 BP statistical Review, 2009 for the year Egypt’s Rank

40 Egypt Libya Algeria Italy Turkey Belgium France Greece Spain Portugal Jordan Tunisia India (0.19) Japan (0.73) South Korea (0.69) UK (0.37) 0.06 USA (2.7) Mexico (0.19) Egyptian LNG Exports (Million Ton) (2008/2009) Argentina (0.12) Cargos exported to 12 countries in 2008/2009

41 Total Capacity= 10 BCM Phase 1: (Al Arish – Taba- Aqabah)  36”/264 Km Pipeline System  Investment : US $ 200.  Operation : July Phase 2: (Aqaba–Rehab)  36”/395 Km Pipeline System  Investments: US $ million Phase 3: (Jordan/Syria/Turkey)  36”/ 540 Km Pipeline System  Investments: US $ million Egypt Turkey Lebanon Jordan Syria

42 Foreign Direct Investment In Egypt By Sectors U.S $ 3.87 Billion U.S $ 6.11 Billion U.S $ 11 Billion U.S $ 13.2 Billion U.S $ 4 Billion U.S $ 2772 million U.S $ 4100 million %

43 Egypt as An Energy Hub Egypt’ strategic location along with other distinctive features qualify it to become an International Energy hub, linking crude oil and natural gas production areas in the Gulf and Mediterranean with consuming areas in Europe and the Far East. This vision will help to achieve the Global objective to improve Energy Security and Supply Diversification. Egypt’ strategic location along with other distinctive features qualify it to become an International Energy hub, linking crude oil and natural gas production areas in the Gulf and Mediterranean with consuming areas in Europe and the Far East. This vision will help to achieve the Global objective to improve Energy Security and Supply Diversification. Egyptian Assets Political And Economical Stability. Availability of the Required Infrastructures. Appropriate Fiscal Incentives. Availability Of Skilled Human Capital. Transparent Regulations. Positive Relationship Between Petroleum Sector And Our Partners.

44 Thank You

45 The Major Challenges Facing The Development of Downstream Gas Market The required investment to develop the distribution infrastructure. Reform of gas pricing policies and the timely introduction of competition. The reduction in capital flows as a result of the Global Financial Crisis. Provide more incentives for private and foreign direct investment.

46 Investment Initiatives to Investors In Gas Projects Reformist Investment Climate, Making Egypt as the number-one destination for FDI in Africa as it accounted for 30% * of all foreign investment in Africa. The Corporate and Personal tax rates are very competitive. Macroeconomic Stability and Robust Growth, where Egypt’s GDP grew 7.1% in 2006/07 and accelerated to 7.5% in the first half of 2007/2008; Making Egypt as better than the average for the Middle East and North Africa region. A large, skill intensive workforce at competitive price. A large and diversified consumer market. Developed Energy Infrastructure, where Egypt boasts a broad, world-class infrastructure base could create a regional Energy Hub. Political Stability and Personal Security. * Source: UNCTAD

47 Africa Natural Gas Main Indicators Natural Gas Reserves: Natural Gas Reserves: Proven Gas Reserves of 14,655 BCM representing 8% of world’s total proven Gas reserves in Africa Gas Production: Africa Gas Production: BCM in 2008, contributes for 7% of the world’s total gas production which implies net exports reached 96 BCM In LNG Capacity: LNG Capacity: Africa holds 54.3 (million tones per annum) or 30% of the world’s liquefaction capacity. Africa Gas Consumption: Africa Gas Consumption: 115 BCM represents about 53% of its production. Source: BP Statistical Review 2009

48 OECD Non-OECD Natural Gas Development (During ) 85% 81 %  More than 85% of Africa’s natural gas is produced in Algeria, Egypt, and Nigeria, which together account for 81 % of Africa’s proved natural gas reserves. to become oriented more toward exports  The region is expected to become oriented more toward exports by which grow from 55 % of production in 2006 to a bout 58% in % 81 %  More than 85% of Africa’s natural gas is produced in Algeria, Egypt, and Nigeria, which together account for 81 % of Africa’s proved natural gas reserves. to become oriented more toward exports  The region is expected to become oriented more toward exports by which grow from 55 % of production in 2006 to a bout 58% in Africa Natural Gas Main Indicators (Cont.) Source: EIA

49 OECD Non-OECD Natural Gas Development (During ) 85% 81 %  More than 85% of Africa’s natural gas is produced in Algeria, Egypt, and Nigeria, which together account for 81 % of Africa’s proved natural gas reserves. to become oriented more toward exports  The region is expected to become oriented more toward exports by which grow from 55 % of production in 2006 to a bout 58% in % 81 %  More than 85% of Africa’s natural gas is produced in Algeria, Egypt, and Nigeria, which together account for 81 % of Africa’s proved natural gas reserves. to become oriented more toward exports  The region is expected to become oriented more toward exports by which grow from 55 % of production in 2006 to a bout 58% in Africa Natural Gas Main Indicators (Cont.) Source: EIA

50 North Africa India Reserves Production Consumption Surplus North Africa- India Natural Gas Trade 2008 (BCM) North Africa gas exports to India accounted for 0.91 BCM in 2008 ranking it as the second gas exporter to India after Qatar (exports to India= 7.98 BCM in 2008).

51 Conclusion  Proven gas reserves have been steadily increasing, moving Egypt ahead towards export more gas by pipelines & LNG at the same time.  Gas infrastructure, consisting of gas transmission grid and gas processing facilities, supports the satisfaction of the ever increasing demand on gas in the local market and gas export projects.  The development of the Egyptian gas industry ranked Egypt in 2008/2009 as number 17 globally in terms of reserves, number 16 in terms of production and number 15 in terms of consumption.  Egypt is participating in world energy security through its LNG exports and through the Arab gas pipeline in the near future.


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