Egyptian Natural Gas Industry Development By Dr. Hamed Korkor Chairman Assistant Egyptian Natural Gas Holding Company EGAS United Nations – Economic Commission for Europe Working Party on Gas 17th annual Meeting Geneva, Switzerland January 23-24, 2007 Egyptian Natural Gas Industry History EarlyEarly GasGas Discoveries:Discoveries: 19671967 FirstFirst GasGas Production:Production:19751975 NaturalNatural GasGas ShareShare ofof HydrocarbonsHydrocarbons EnergyEnergy ProductionProduction (2005/2006)(2005/2006) Natural Gas Oil 54% 46 % Total = 71 Million Tons 26°00E 28°00E30°00E 32°00E 34°00E MEDITERRANEAN N.E. MED DEEPWATER SEA SHELL W. MEDITERRANEAN WDDM EDDM . BG IEOC 32°00N bp BALTIM N BALTIM NE BALTIM E MED GAS N.ALEX SETHDENISE SET -PLIOI ROSETTA RAS ELBARR TUNA N BARDAWIL . bp IEOC bp BALTIM E BG MED GAS P. FOUAD N.ABU QIR N.IDKU NW HA'PY KAROUS MATRUH GEOGE BALTIM S DEMIATTA PETROBEL RAS EL HEKMA A /QIR/A QIR W MED GAS SHELL TEMSAH ON/OFFSHORE SHELL MANZALAPETROTTEMSAH APACHE EGPC EL WASTANI TAO ABU MADI W CENTURION NIDOCO RESTRICTED SHELL RASKANAYES KAMOSE AREA APACHE Restricted EL QARAA UMBARKA OBAIYED WEST MEDITERRANEAN Area NIDOCO KHALDA BAPETCO APACHE ALEXANDRIA N.ALEX ABU MADI MATRUH EL bp EGPC APACHE bp QANTARA KHEPRI/SETHOS TAREK HAMRA SIDI IEOC KHALDA KRIER ELQANTARA KHALDA KHALDA W.MED ELQANTARA KHALDA APACHE EL MANSOURA N. ALAMEINAKIK MERLON MELIHA NALPETCO KHALDA OFFSET AGIBA APACHE KALABSHA KHALDA/ KHALDA WEST / SALLAM CAIRO KHALDA KHALDA GIZA 0 100 km Up Stream Activities (Agreements) APACHE / KHALDA CENTURION IEOC / PETROBEL / AGIBA OPEN AREA Bp/ GUPCO EGPC MERLON / EL QANTARA BG / RASHPETCO GEOGE SHELL / BAPETCO Natural Gas Proven Reserves Development 80 TCF 68.2 70 65 67 62 60 58 52 50 48 40 30 20 10 0 99/00 00/01 01/02 02/03 03/04 04/05 June 2006 Mediterranean 78% Up Stream Activities (Reserves) Delta Gulf of Suez Western Desert 3% 8% 11% Natural Gas Industry Main Indicators (November 2006) •• GasGas ProductionProduction 5.65.6 BCF/DBCF/D •• GasGas SalesSales 5.15.1 BCF/DBCF/D •• LPGLPG ProductionProduction 2.62.6 KK Ton/DTon/D •• PropanePropane ProductionProduction 0.60.6 KK Ton/DTon/D •• CC2/C/C3 mixmix ProductionProduction 1.41.4 KK Ton/DTon/D •• CondensatesCondensates ProductionProduction 105105 KBBL/DKBBL/D LNGLNG (Damietta)(Damietta) LNG (Idku) FeedFeed : : 750 750 MMscf MMscf / / D D Rosette Feed :500 MMscf / D LTS LNGLNG : : 14232Ton 14232Ton / / D D Obayied Tarek Design Capacity : 300 MMscf/D LNG : 9155 Ton / D Sales Gas : 275 MMscf/D East Baltim LTS LTSLTS Cond. : 1200 bbl / D Design Capacity : 420 MMscf/D Design Capacity : 100 MMscf/D 2 Trains Gas to Abu Madi MED. NGL (UGDC) Sales Gas : 85 MMscf/D Facilities Sales Gas : 400 MMscf/D Feed : 1100 MMscf/D Cond. : 40000 bbl / D Cond. : 5000 bbl / D Abu Qir N. Damietta Propane : 790 Ton / D LTS Abu Madi Salam Design Capacity : 300 MMscf/D A LPG : 930 BBL / D lex Abu Qir Abu Madi EL - Obayied LTS LPG an Tarek Design Capacity : 240 MMscf/D dr Cond. : 2800 BB / D Design Capacity : 200 MMscf/D ia Port Fouad Sales Gas : 220 MMscf/D Sales Gas : 180 MMscf/D Cond. : 3500 bbl / D South Cond. : 9000 bbl / D Port Said Salam LPG : 200 Ton /D Abu Madi & N. Abu Madi Om Barka Hapy Sedi LTS kreir Design Capacity : 360 MMscf/D EL QARA LTS Amyria Ameriya LPG Design Capacity : 340 MMscf/D Design Capacity : 540 MMscf/D Sales Gas : 320 MMscf/D LPG Sales Gas : 540 MMscf/D Cond. : 1200 bbl / D Design Capacity : 300 MMscf/D Cond. : 8500 bbl / D Sales Gas : 275 MMscf/D LPG : 400 Ton /D Cond. : 800 bbl / D LPG : 350 Ton /D Port Fouad / Darfeel / Bed 2 , 3 Temsah LTS Design Capacity : 315 MMscf/D LTS Sales Gas : 300 MMscf/D Design Capacity : 600 MMscf/D Bed-2,3 Cond. : 7000 bbl / D NGL Unit Sales Gas : 580 MMscf/D Design Capacity : 550 MMscf / D Cairo Cond. : 22000 bbl / D Sales Gas : 470 MMscf / D Suez Abu Sannan Ethane / Propane : 1400 Ton / D Propane : 600 Ton / D Dahshour Ayoun Moussa Abu Ghradik LPG : 850 Ton / D LTS Abu El Ghradik Cond. : 700 bbl / D Tebbin Design Capacity : 160 MMscf/D Sales Gas : 140 MMscf/D Dahshour Cond. : 1800 bbl / D Abu Sannan LTS LPG Design Capacity : 138 MMscf/D Design Capacity : 85 MMscf/D Koraymat Zafrana Sales Gas : 125 MMscf/D Sales Gas : 75 MMscf/D LPG : 300 Ton /D Cond. : 400 bbl / D Abu Rudies LPG Trans Gulf Design Capacity : 50 MMscf/D LPG Sales Gas : 40 MMscf/D Design Capacity : 130 MMscf/D Cond. : 3400 bbl / D LT S Sales Gas : 70 MMscf/D LPG : 400 Ton /D Cond. : 3400 bbl / D Ras Bakr L P G LPG : 900 Ton /D LT S & L P G ELMenia Ras Shoukier LPG N G L Design Capacity : 220 MMscf/D Sales Gas : 170 MMscf/D L N G Cond. : 5000 bbl / D LPG : 1000 Ton /D Ras Shoukier Zeit Bay LPG Design Capacity : 90 MMscf/D Sales Gas : 20 MMscf/D Cond. : 3400 bbl / D LPG : 500 Ton /D Asiout Total Pipelines Network Length = 16156 KM Mediterranean Sea Total Pipelines Network Length = 16156 KM 24 ”-50 km Scarab/ Saffron 32 ”-170 km Hapy Baltim Rosetta 16 ”-38.5 km Damietta EL sheikh Matruh zowayed ElQara Abu Qir Port Fouad EL - Obyed Tarek Abu Madi 30 ”- 28 km 16 ”-22 km Arish Abu Qir 22 ”- 40 km P.S 22 ”- 40 km Port Said Arish Alexandria Talkha 12 ”- 40 km 42 ”- 40 km East Port Salam Said P.S South Om Barka 28 ”- 46 km 28 Abu Hommos ”-11 8 km 36 ”-194 km m 24 ”- 45 km Sedi kreir 24 ”- 45 km k 67 -1 Shabshir 2 ” 3 32 ”- 85 km Mahmudya Tanta Ameriya 16 ”-165 km Egypt Gas Cement 24 ”- 215 km Sinai T Ameriya 12 ”-14 km & Ind. Area o m k 3 EL - Shabab E Cement 2 2 ” -2 -2 ” 00 Abu Sultan a 4 k 28 ”- 86 km 2 m s t Abu Zaabal 2 e Borg Elarab 4 ” r - Sadat City m 1 n 114 k 4 6 ”- 5 1 k p m i 32 ”- 75 km p e 10 of the Ramadan l i n 24 ”- 25 km e Nile Valley Co. Cairo Suez Bed-2,3 20 ”- 65 km Abu City Gas Sannan 6 October Oyoun City Gas Moussa Abu El Ghradik Dahshour Tebbin i Taba 22 ”- 87 km i City Gas na 16 ”-192 km in Koraymat Existing. P/L Zafrana S 18 ” -162 k Under Cons. P/L Western m 16 ”-256 km Under Study. P/L Beni Suef Gas Fields Off Shore Desert Gas Fields On Shore Ras Bakr Facilities ELMenia Distribution Station Power Station Ras Shoukir Industrial Area Asiout 1000 2000 3000 4000 5000 6000 National GasTransmissionLinesDevelopment 0 570 80/81 Total Length=16,156Km National GridLength(HighPressure) =5700Km December2006: By KM Total Length=16,156Km National GridLength(HighPressure) =5700Km December2006: By 81/82 82/83 83/84 84/85 85/86 86/87 87/88 (High Pressure) 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 5700 04/05 05/06 National Gas Grid Capacity Development MMCMD 200 180 180 160 140 130 120 100 100 80 60 36 40 20 0 1996/1997 2001/2002 2006/2007 2016/2017 Mid Stream Activities 10000 20000 30000 40000 50000 60000 Natural GasDemandDevelopment Natural GasDemand Development 0 2.4 80/81 BSCM 81/82 82/83 83/84 84/85 85/86 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 0.7 03/04 3.7 04/05 52.4 05/06 18.1 Natural Gas Demand by Sector Share (2005/2006) Industry Cement Petroleum 5% Residential Fertilizers 7% 7% 1% 5% Export Electricity 35% Down Stream Activities 39% Vehicles 1% NaturalNaturalNatural GasGasGas ConsumptionConsumptionConsumption DevelopmentDevelopmentDevelopment (( 1980/811980/81 –– 2005/2006 2005/2006 )) 34.1 40000 BCM 35000 Average Annual GR = 11.2 % 30000 25000 20000 15000 2.4 10000 5000 0 80/81 81/82 82/83 83/84 84/85 85/86 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/2000 2000/01 2001/02 2002/03 2003/04 2004/2005 2005/2006 Ele c tric ity Fe rtilize r Industry Cement Petroleum Res. & Comm. Vehicles NaturalNatural GasGas ConsumptionConsumption ByBy SectorSector ShareShare (2005/2006)(2005/2006) Residential Vehicles Petroleum 2% 1% 10% Cement 7% Industry 10% Electricity Fertilizer 62% 8% NGVNGV IndustryIndustry CurrentCurrent SituationSituation (End of November 2006) •• Operating Companies : 6 •• Converted Vehicles : 75 Thousand •• Fueling Stations Operating : 110 Under Construction : 17 •• Conversion Centers : 54 •• Natural Gas Consumption : 27.4 MMCM/Month (Nov.) Light Trucks Pik-up Fork Lift 7% 3% Bus e s 1% Others 2% Mirobuses 3% 3% Private 9% Taxi 72% NaturalNatural GasGas ExportExport GasGas ExportExport ProjectsProjects –– Cont.Cont. ThroughThrough Pipelines:Pipelines: ArabGasArabGas Pipeline:Pipeline: Total Capacity= 10 BCM ToTo Jordan,Jordan, SyriaSyria && thenthen toto Lebanon,Lebanon, CyprusCyprus andand EuropeEurope ““PhasePhase II ““ ToTo Jordan:Jordan: (Al Arish – Taba- Aqabah) Agreement : Signed in Jan. 2001. Export : 1.1 - 3 Billion CM / Y. Investment : US $ 200. Operation : July 2003.11 ““PhasePhase IIII ”” AqabaAqaba––RehabRehab :: 36”/393 Km Pipeline System Investments: US $ 270 - 300 million ““PhasePhase IIIIII ”” Jordan/Syria/TurkeyJordan/Syria/Turkey 36”/ 540 Km Pipeline System Investments: US $ 400 - 500 million AsAs LNG:LNG: TwoTwo ProjectsProjects FirstFirst ProjectProject withwith UnionUnion FenosaFenosa (at(at Damietta):Damietta): •• Contractntract waswas signedsigned inin JulyJuly 2000.2000.