How Egypt is future proofing the energy sector
Over the course of the year, the MENA region has been pouring investments into energy security.
Today, the US and Egypt have joined the many that are contributing to furthering energy security. Adam Boehler, Chief Executive Officer, U.S. International Development Finance Corporation (DFC), has announced its commitments to provide US$430mn in insurance to advance energy security in Egypt.
Natural gas is the earth’s cleanest fossil fuel. The gas is colourless and odourless in its natural state, and is composed of four hydrocarbon atoms and one carbon atom. Due to being the earth's cleanest fossil fuel, natural gas is frequently used to bridge the gap for companies looking to achieve 100% renewable energy production, by slowly reducing its oil and gas production sites as they come to end of life.
What does this mean for Egypt?
The US$430mn insurance will enable Noble Energy Inc., Houston, Texas, to rehabilitate a 90 kilometer EMG natural gas pipeline to transport natural gas from offshore sites in Israel - under the Mediterranean Sea - to Al-Arish, Egypt. Over 15 years 3trn cubic feet of natural gas will be transported.
“Strengthening energy security—which bolsters trade, support investment, and improves quality of life—is critical to ensuring lasting prosperity and stability in Egypt,” said Boehler. “This project will help the country meet growing demand for reliable, low-cost energy in order to fuel sustained economic growth and create opportunities that have a stabilising impact in Egypt and across the region.”
For more information on business topics in the Middle East and Africa, please take a look at the latest edition of Business Chief MEA.