Egypt formally changed its 2040 objective for renewable energy from 58% to 40%. The announcement of this shift by Egypt’s Minister of Petroleum, Karim Badawi, on Sunday highlights the country’s ongoing emphasis on natural gas as a vital component of its energy policy.
Egypt Modifies its Renewable Energy Goal for 2040
The nation’s energy strategy has changed as a result of the decision to reduce the 2040 renewable energy target. Egypt first pledged to produce 42% of its energy from renewable sources by 2035; however, this target was then accelerated to 2030. The earlier, more aggressive target to achieve 58% by 2040 has now been lowered.
Prioritizing Natural Gas Investments and Exploration
In his opening remarks, Badawi stressed the importance of increased cooperation and funding for natural gas exploration at the Mediterranean Energy Conference 2024. “This is a call to action for all of us to work together to improve discoveries and draw in additional funding by submitting exploration bids, with the goal of securing new discoveries in the area, especially in natural gas,” he said.
Increased Attention on Fossil Fuels Despite Currency Shortages
Foreign oil corporations’ operations in Egypt have been impacted by the country’s ongoing reliance on fossil fuels, particularly in light of the country’s current hard currency deficit. Due to the slowdown of many of these businesses, Egypt is left with billions of dollars’ worth of unpaid debt. The government is attempting to mend fences with international energy businesses in order to combat this.
Egypt’s largest gas field, Zohr, and Italy’s Eni
Since assuming office in July, Badawi has collaborated with foreign energy companies, like as Eni of Italy, which is getting ready to drill additional wells in Egypt’s Zohr gas field by the beginning of 2025. Egypt had to look for more gas imports as a result of the Zohr field’s output declining to 1.9 billion cubic feet per day by early 2024 from 3.2 billion cubic feet per day in 2019.
Importing More Gas to Prevent Load Shedding
Egypt has boosted its gas imports through liquefied natural gas (LNG) exports and a pipeline from Israel in response to dwindling domestic gas supply. The goal of these initiatives is to prevent protracted load shedding emergencies that can jeopardize the country’s energy security.
Increase in Imports of Fuel Oil
Egypt has increased its imports of high-sulfur fuel oil in addition to natural gas. The nation imported 255,000 barrels of fuel oil per day in September 2024, which was the most since 2016. This rise is a component of Egypt’s larger initiative to stabilize its energy supply in the face of numerous obstacles.
