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Page 1: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGAS

Egyptian Natural Gas Industry

EGAS

Page 2: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Ministry of Petroleum

South Egypt

Holding Compan

y(Ganope)

GanoPe

Egyptian Petrochemicals Holding Company

(ECHEM)

Egyptian Mineral Resourc

es Associati

on E. M. R.

A

EGAS

Egyptian Natural

Gas Holding Company

(EGAS)

Egyptian General

Petroleum Corporati

on( EGPC)

Organization of Egyptian Oil Sector

Page 3: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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

Page 4: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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.

Page 5: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Early Gas Discoveries: 1967

First Gas Production: 1975

Egyptian Natural Gas Industry History

Page 6: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Natural Gas Share of Total Hydrocarbons Production (2008 /

2009)

0

10

20

30

40

50

60

70

80

90

100

1998/ 99 1999/ 2000 2000/ 01 2001/ 02 2002/ 03 2003/ 04 2004/ 05 2005/ 06 2006/ 07 2007/ 08 2008/ 09

Oil Natural Gas

MTOE

89

Oil̀:˾ %

Natural Gas˻ ˾ %

Total Hydrocarbon Production 2008/2009 = 89

MTOETotal Hydrocarbon

Production 1998/1999= 52.5 MTOE

13 MMTOE

55 MMTO

E

425%

Page 7: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGAS

N. E. Med. Deep Water

SHELL

EGAS Concessions Mediterranean, Nile Delta & N. Sinai33°27°25°

34°

33°

32°

31°

30°

EASTERN DESERT

SINAI

WESTERN DESERT

35°

N

S

EW

100 m.

1000 m.

2000 m.

100

m.

CAIRO

29° 31°

Restricted area

TinahIEOC

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 MagharaPETZED

DISOUQRWE

EL QAR’AIEOC

Abu MadiEGPC

El FayrouzIEOC

W. Med. Seadevelopment

Block 1

HESS

ROSETTADEV. LEASES

RommanaSIPETROL

TantaRWE

W. ABU MADIIEOC

KHILALAIEOC

W. MED. DEEP WATER

bp

N. ALEX.DEV. LEASES

bp

EDDM

DEV.

N. Hap’yGSPC

N. El Burgbp / IEOC

TinahIEOC

El Arish offshore

THARWA

N. Port SaidIEOC

El BurgBG

WASTANI & E. ELWASTANIDEV. LEASE

ThekahIEOC / THARWA

El Arish

Tanta

Alexandria

DEV. N. Bardawil

El Dabaa offshoreSTATOIL

Ras El Hekma offshoreSTATOIL

Obaiyed offshoreOMV

El Dabaa

MatruhEl Manzala

CENTURION

W. El QantaraCENTURION

W. El ManzalaCENTURION

N.W.DAMIETTA

SHELL

BALTIM E. IEOC

BALTIM S. IEOC

BALTIM N. IEOC

El TemsahIEOC

Denise

El Temsah

Karous

El Burullusbp

Seti Pliobp

Ha’py Seth Dev.leases

bp

LuziDev.

Dev. WDDMBG

W. Baltim offshore

IEOC

N. E. BALTIMIEOC

1000 m.

1000 m.W.El BurullusGAZ DE FRANCE

El QantaraMERLON

Tao/ KamosePERINCO

ThekahDev. Lease

El ManzalaBG

Port Said

El bougazIEOC

N. Tineh Offshorebp

East EL Burullus Offshore

N. Damietta Offshore

N. GamasaOffshore

Open AreasRestricted Area 3 New Agreements

N. Idku.RWE

N. EL AMRIYA RWE

Restricted area

Sidi Abd El Rahman offshoreEDISON

DabayaaDev.

3000 m.

3000 m.

100 m.

1000

m.

El MansouraMERLON

Page 8: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGAS

Operating Companies with EGAS

29 Companies & 18 Nationalities

EGAS

Melrose

Petzed

Centurion

Alkor GSPC

Petronas

Sonatrach

Statoil

HESS

OMV

TharwaGeo Global

RWE

GDF

Dana Pet.

Sipetrol

Edison

Centrica

bp

Eni

Kufpec

Shell BG

El Paso

Novatek

Enel

PTTEP

Total

UK UK UKUK

UK

France

France

France

Perenco

Italy

Italy

Italy

Egypt

EgyptIndiaIndia

NetherlandsMalaysia

Canada

USA

Austria

USA

Norway

Russia

Germany

Barbados

Chile

Thailand

Algeria Kuwait

Page 9: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Distribution of EGAS Concessions in Mediterranean,

Nile Delta & N. Sinai

Nile Delta & N. Sinai

21253 Km2

10.6%

Mediterranean

96851 Km2

48.4%

Open Areas74295 Km2

37.1%

Protectorate & Restricted Area

7601 Km2

3.9%

Total Areas ~ 200000 Km2

Page 10: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Petroleum Exploration Evolvement, Number of

Agreements & Amendments (1980 – 2008)

Page 11: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Development of Natural Gas Agreements & Amendments

(1999/2000-2008/2009)

• 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.

Page 12: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGAS

33°27°25°

34°

33°

32°

31°

30°

35°

N

S

EW

100 m.

1000 m.

2000 m.

100

m.

CAIRO

29° 31°

Restricted area

TinahIEOC

2000 m.

2000 m.

Restricted area

3000 m.

3000 m.

El Arish

Port Said

Tanta

AlexandriaEl Dabaa

Matruh1000 m.

1000 m.

El QantaraMERLON

24 Gas Discoveries (July 2008 – June 2009)

Total Added Reserve 3580 BCF – 148 MMBBLC

100 m.

E.Dikirnis-1 StEL MANSOURA –EL MANSOURA

Qawasim (Miocene)

Salma Delta -1,2Centurion – 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.2BP- Burullus offshore Qantara Fm (Miocene)

Add Res.: 408 BCF 44 MMBC

Taurus West-1BP-N.Alex(1) offshore

Kafr El Sheikh (Pliocene)

Add Res.: 49 BCF

N.W.Khilala-1 StRWE- DISOUQ

Abu Madi (Miocene)Add Res.: 50 BCF

N.Dikirnis-1EL MANSOURA –EL MANSOURA

Qawasim (Miocene)Add Res.: 1.4 BCF

0.0357 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-1,2CENTURION – W. EL MANZALA

Kafr El Sheikh (Pliocene) Add Res.: 26 BCF

Azhar-1CENTURION – W. EL MANZALA

Qawasim Fm (Miocene)Add Res. 111 BCF

2.8 MMBC

S. Khilala-1EL MANSOURA –EL MANSOURA

Qawasim (Miocene)Add Res.: 24 BCF

0.06 MMBC

Tulip -1Centurion – 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. 63.4 BCF

EL Basant-1,2CENTURION – W. EL MANZALA

Qawasim Fm (Miocene)Add Res.: 126 BCF

3.9 MMBC

Disouq- 2RWE – DISOUQ

Abu Madi (Miocene)Add Res. 59 BCF

Qantara - 4El Mansoura – El Qantara

Tinah Fm (Miocene) Proven Reserve

Dekhila -1Nalbetco - W. Med (B-1)

Kafr El Sheikh – Abu MadiAdd Res.: 72 BCF

N.Alex B-2 BP-N.Alex(2) offshore

Kafr El Sheikh (Pliocene)Proven Reserve

Falcon -2Khalda –Matruh

L. Safa – Alam El BueibAdd Res.: 35.67 BCF

0.51 MMBC

Page 13: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGASEgas Agreement Status for First and Second

Exploration Phases

- Financial Expenditures :1313 MM$

- Total 3D Programs : 30416 Km2

- Total 2D Programs : 3268 Km

- Drilled Wells : 37

- Discoveries : 21

- Success Ratio : 57%

- Added Reserves : 3.4 TCF

: 210 MMBC

Page 14: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

°30

N

S

EW

100

رمت

1000

ر مت

2000

ر مت

متر 3000

متر 1000متر 200

متر 3000

2000

ر مت

ب1

4 A

أ1

°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 Arishبورسعيد

األسكندريةمطروح

الضبعة

Suez

جـ4ب4د4

3 Aأب3 2

100 تر

م

متر 100متر 1000

متر 100

متر 1000

متر 2000

منطقةموانئ

محظورة

منطقةموانئ

محظورة

Commitment 13 Wells

three-dimensional Seismic survey 5050 Km2

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 km2 (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 km2 (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 km2 (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 km2 (three-dimensional)   Digging wells: 4 wells   Exploration term : 6 years   Signing bonus: U$ 5 Million

Results of International Bid round (2008)

Page 15: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGAS

Water Depth

Rig availability

Sub-sea well completion.

High Pressure - High Temperature wells.

Technical Development Challenges:

Page 16: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Natural Gas Proven Reserves Development(1981/1982-2008/2009)

Prov

en R

eser

ves

Incr

ease

d ab

out 10

tim

es

Page 17: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGAS Growth of Gas Reserves & Cum. Production

36.444.9 53.1 55.9 59.4

64.866.3

68.2 72.3

7677.2

-5

5

15

25

35

45

55

65

75

85

1998/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/2008 08/09

Reserve in 30/6 Cum. Production

13.811.617

TCF

Mediterranean81%

Delta2%

Gulf of Suez6%

Western Desert11%

Percentage of Production Replacement in 2008/2009 =

157%

Added Reserves = 57.8 TCF

Page 18: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Proven Reserves 77.2 TCF

123 Prospect (Location of High Propriety) Economic Evaluation Stage

Total Locations = 334

26.6 TCF (38%)26.6 TCF (38%)

43 TCF (62%)43 TCF (62%)

Expected Reserves 69.6 TCF

Distribution of Expected Reserves

212 Lead (Location of Low Propriety) Need More Studies

Page 19: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

• 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

• C2/C3 mix Production 1.5 K Ton/D

• Condensates Production 120 KBL/D

Page 20: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Natural Gas Production Development(1981/1982-2008/2009)

Product

ion In

crea

sed

abou

t 24

times

Page 21: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Average Annual Growth

Rate = 14.4%

Growth = 330

%

Planned

MMCF/ D

Page 22: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Production of Condensates and LPG )2000/2001- 2009/2010(

Condensates

LPG

Thousand bbl/d

Thousand Ton/y

Page 23: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Production Enhancement through New Projects in 2008/2009

Total Projects Number: 21 (33 Wells).

Average Daily Production Rate:Natural Gas 474 MMCFCondensates 3974 BarrelsTotal 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 48 WellsAverage Daily Production Rate:

Natural Gas 616 MMCF

Condensates 8686 barrels

New Projects

77%

Developed Wells

23%

Page 24: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGAS

29 Different Gas Facility16 Low Temp. Separator “LTS” Facilities…6800 MMSCFD 9 Liquefied Petroleum Gas “LPG” Facilities…1800 MMSCFD2 Natural Gas Liquid “NGL” Facilities…1700 MMSCFD2 Liquefied Natural Gas “LNG” Facilities…1870 MMSCFD

LPG : 1.4 MM ton / yearCondensate : 43.5 MM bbl / yearPropane : 635 MTONEthane / Propane : 476 MTONTotal : 7.72 MM TON

With total average production

Page 25: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Baltim

Damietta

Talkha

Shabshir

Tanta

OyounMoussa

Sadat City

Abu Zaabal

10 of the Ramadan

Dahshour Tebbin

SuezCity Gas

City Gas

Zafrana

City Gas

Koraymat

Nile Valley Co.

6 October

Alexandria

Sedi kreir

AmeriyaMahmudya

Egypt Gas

TarekEL - Obyed

SalamSouth

Om Barka

Matruh

Abu Sannan

Abu El Ghradik

Bed-2,3

Ras Bakr

Ras Shoukir

EL - ShababAbu Sultan

Asiout

Beni Suef

ELMenia

Cairo

Hapy

Ameriya Cement

Borg Elarab

Abu Hommos

Abu Madi

EL sheikhzowayed

Port Fouad

Port Said

East Port Said P.S

P.SArish

Cement Sinai

& Ind. Area

ElQara

To Eastern pipeline

Taba

Arish

24 ”- 45 km36 ”-194 km24 ”-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 km22 ”- 40 km

12 ”- 40 km

28”-118 km

28 ”- 86 km

24 ”- 45 km

32 ”-200 km24 ”-

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

WesternDesert

WesternDesert Sinai

Sinai

Abu Qir

Scarab/ Saffron

Rosetta

Abu Qir

Year : 2000 2009Capacity: 68 180 MMSCM/DLength : 3750 17770 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

Page 26: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

8.5

58.9

18.1

3.70.7

1915.2

17.3

Exports Total Consumption

Page 27: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

8.5 9.210.7

11.8

12.3 12.8

13.2 13.4

14.7

17.9

22.625.2

28.130.8 30.8

34.1

37.239.6

GR = 9.2%

41.6

BCM

Page 28: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

* Industry includes Cement , Fertilizers , Iron, Refractory &other industries , Petrochemical & methanol

2008/2009

Total Consumption = 41.6 BCM

Natural Gas Consumption Pattern

(1998/1999-2008/2009)

1998/1999

Page 29: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Natural Gas, LNG & Propane Exports & Sales Revenues

Natural Gas

Propane

LNG

0.2 0.3 0.2 0.82.4

0.4

0.5 0.6 0.6

9.3 11.1 8.8 8.8

4.83.71.7

110.7

12.3 13.3 14.2

Quantity= 45.4 Million tons

31.2 Million tons 14.2 Million tons

Value= 5597 $ Million

2274 $ Million12.7 Billion LE

3323 $ Million

Page 30: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EGAS

History of Residential Connections1981-2009

93 176 231

543

2450

0

400

800

1200

1600

2000

2400

2800

81 -85 86 -90 91 -95 96-2000 2001-2009

Number of Customers (Thousand)

1.043 Customers

Connection Rate 50 Thousand Customers per year

3.47 Customers (28

Governorates)

Connection Rate 250 Thousand Customers per year

Page 31: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Number of Connected Industrial Customers (1999/2000- 2008/2009)

Total (till June 2009)= 1547 Customers

Page 32: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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 2009.

Koraiemate

Dahshour

Luxor

Aswan

Benisuef

*ِAssuit

El-Menia

148 Km

145 Km

121 Km

380 Km

Sohag

28 Km

90 Km

36``

30``

32``

32``

30``

Phases Completed

Taba

Sharm Elsheik

Hurgada

Ras shukair

Kina

Page 33: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Working Companies : 6

Fueling Stations : 119

Conversion Centers : 62

Sales Gas : 35 MCM /Month

Page 34: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Contract was signed in July

2000.

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 2004.

Total exported quantity 15.6

Million Ton (264 Shipments)

Export of the first LNG Cargo: Jan. 20, 2005

LNG ProjectsFirst Project with Union Fenosa (at Damietta):

Page 35: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Contract was signed in April 2001.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- 2005.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

The Second Project with BG, Petronas, GDF, EGPC & EGAS (at Idku):

Page 36: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

LNG Export (2004/2005-2008/2009)

Page 37: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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 2009

143 Cargos exported to ASIA Countries Include

14 Cargos exported to India

3 China

1 Argentina

1 N. Korea

Page 38: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

"Methane Nile Eagle"The First Egyptian LNG Carrier

• Capacity: 145,000 m3

• Length: 272 m• Maiden Voyage: 2007

Manufacture: Dec. 2007 9 voyages till today. Transported quantities of

LNG: about 1.2 BCM ( More

than 0.5 MM tons

Page 39: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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 2008

8 8 8

Egypt’s Rank

Page 40: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

EgyptLibyaAlgeria

Italy

Turkey

Belgium

France

Greece

SpainPortug

al

Jordan

Tunisia

India

(0.19)Japan

(0.73)

South Korea

(0.69)0.18

3.83

10.7

UK (0.37)

0.06USA (2.7)Mexico (0.19)

Egyptian LNG Exports (Million Ton)(2008/2009)

Argentina (0.12)

0.131.53179 Cargos exported to 12 countries in 2008/2009

Page 41: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Total Capacity= 10 BCM Phase 1: (Al Arish – Taba-

Aqabah) 36”/264 Km Pipeline

System Investment : US $ 200. Operation : July 2003.11

Phase 2: (Aqaba–Rehab) 36”/395 Km Pipeline

System Investments: US $ 270 -

300 million

Phase 3: (Jordan/Syria/Turkey)

36”/ 540 Km Pipeline System

Investments: US $ 400 - 500 million

Egypt

Turkey

Lebanon

Jordan

Syria

Page 42: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Foreign Direct Investment In Egypt By Sectors

23.3

54.8 47.3 49.5

22.5

10.1

14.8 25.4 18.4

7.5

66.6 70

30.4 27.3 32.1

0

10

20

30

40

50

60

70

80

90

100

2004/2005 2005/2006 2006/2007 2007/2008 2008/2009

New establishments & expansions Sale of assets to non-residents

Inflows in the petrolum sector

U.S $ 3.87Billion

U.S $ 6.11Billion

U.S $ 11Billion

U.S $ 13.2Billion

U.S $ 4Billion

U.S $2772

million

U.S $4100

million

%

Page 43: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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.

Page 44: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Thank You

Page 45: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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.

Page 46: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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

Page 47: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

Africa Natural Gas Main Indicators

• Natural Gas Reserves: Proven Gas Reserves of 14,655 BCM representing 8% of world’s total proven Gas reserves in 2008.

• Africa Gas Production: 214.8 BCM in 2008, contributes for 7% of the world’s total gas production which implies net exports reached 96 BCM In 2008.

• LNG Capacity: Africa holds 54.3 (million tones per annum) or 30% of the world’s liquefaction capacity.

• Africa Gas Consumption: 115 BCM represents about 53% of its production.

Source: BP Statistical Review 2009

Page 48: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

OECD

Non-OECD

Natural Gas Development (During 2006-2030)

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.

The region is expected to become oriented more toward exports by which grow from 55 % of production in 2006 to a bout 58% in 2030.

Africa Natural Gas Main Indicators (Cont.)

Source: EIA

Page 49: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

OECD

Non-OECD

Natural Gas Development (During 2006-2030)

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.

The region is expected to become oriented more toward exports by which grow from 55 % of production in 2006 to a bout 58% in 2030.

Africa Natural Gas Main Indicators (Cont.)

Source: EIA

Page 50: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

North Africa Indi

a

8210

161.3 66.

2

1090

30.6

41.4

95.1

-10.8

0.91

Reserves

ProductionConsumptionSurplus

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).

Page 51: EGAS Egyptian Natural Gas Industry. Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM)

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.