Vice ChairmanGas & Energy Companies

GENCO GROUP

Development & FutureDevelopment & FutureDevelopment & FutureDevelopment & FutureDevelopment & FutureDevelopment & FutureDevelopment & FutureDevelopment & Future

Of Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in EgyptOf Natural Gas in Egypt

Eng.Eng.Eng.Eng.Khaled Abubakr

Secretary GeneralEgyptian Gas Association

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1st gasdiscovery

1stPowercustomer

1st residentialcustomer

1st CNGvehicle

Private LDCs

1972 1975 1980 1992 1997

1st Gas ExportPipeline

2003

Egyptian Gas SectorKey Milestones

2004 2005

1st Gas Export

LNG

Private CNG

23rdWorld Gas ConferenceEgyptian Energy SectorGas Contribution in Primary Energy Consumption

20052005

Hydro

7%

Oil

63%

Gas

30%

19951995

Hydro

2%Oil

49%

Gas

49%

34 MTOE34 MTOE

55 MTOE55 MTOE

In the last 10 years, Egypt witnessed

a staggering growth of 62% in gas consumption

19751975

Hydro

10%

Oil

90%

Gas

0%

21 MTOE21 MTOE

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National Gas Grid

National Gas Grid Length 4,700 kmOverall Capacity 42.3 BCM/Year

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State Owned Co.

Public Sector

Gas Transmission

1975 1997

Phase I Phase II

Upgrade & Expansion

Oil ProductsOil Products

PipelinesPipelines

GasGas

PipelinesPipelines

State OwnedInvestment Law

GASCO

State Owned Co.Public Sector

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Gas Distribution

1979 1983 1997

Phase I Phase II Phase III

Pilot Project National ProjectDeregulation &Expansion

EPC

MonopolyState OwnedPetrogas

Foreign ContractorWilliam Press

MonopolyState OwnedEgypt Gas

MonopolyState OwnedPetrogas

7 Private Local

Distribution Companies

& Contractors

“LDC”

Operator & Distribution

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� Additional 900 000 customers connected

� 700 MM $ of Foreign & Local investment

� 16 Governorates covered by Gas networks

� 650 MM $ /Year Saved in subsidies

� Enhancing HSE

� Introducing new technologies

� Attracting the Multi-Nationals

� Provide a better quality of life for Egypt’s citizens

Egyptian Gas Distribution SectorDeregulation results in 8 years

From one state owned monopoly to 7 private local From one state owned monopoly to 7 private local LDCsLDCs

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CNG in Egypt

1992 1996 2004

First StageFirst Stage Second StageSecond Stage Third StageThird Stage

Pilot ProjectPilot ProjectCommercializationCommercialization

StartupStartupPrivatization & Privatization &

ExpansionExpansion

22

Pilot ProjectsPilot Projects

E & PE & P

MultiMulti--Nationals Co.Nationals Co.

22

StateState--owned Co.owned Co.

with participationwith participation

Of MultiOf Multi--NationalsNationals

44

New Private sectorNew Private sector

In 1992, Egypt pioneers the Middle East & Africa,In 1992, Egypt pioneers the Middle East & Africa,

by using CNG as a transportation fuel by using CNG as a transportation fuel ……

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CNG in Egypt

23rdWorld Gas ConferenceEgyptian Gas SectorConsumption Breakdown

2.2 million residential customers16,000 commercial customers

1,200 Industrial factories

95 CNG fueling stations 65,000 vehicles

28 Power stations

30 years experience in gas distribution30 years experience in gas distribution

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� Successful applications of Natural Gas

� World standards and specifications

Egypt Gas Industry

Conclusion

� Set independent regulatory body

� Implement Plan to lift oil subsidies by leveraging Natural Gas

� Enhance Country Energy efficiency

� Balance between Export and Local demand

Challenges

THANK YOU

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