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Transport and Distribution of Gas, Oil and Water as Preconditions for Successful Industrial Development in Africa & the MENA Region

Transport and Distribution of Gas, Oil and Water as Preconditions for Successful Industrial Development in Africa & the MENA Region

Forced industrialization in the whole region has led to high demand for investment, in particular in the energy and water supply sectors. Realization of the projects require a lot of know-how and appropriate technologies. This presents a wealth of opportunities for European and international businesses to engage with the region and to create long-term partnerships.

After four years of political and economic change, Egypt, the link between Africa, the Middle East, and the industrialized countries of the West, is aiming to garner the support of international investors. The long-term goal is to establish a diversified economy in Africa and the Arab states, with Egypt as an important economic center. The country is receiving support from international institutions such as the World Bank and the European Union. There is also a need for support from experienced business partners, as well as the intention to implement both proven and new technologies. These are found especially in industrialized countries.

The conditions for foreign investment are improving. The release of the Egyptian pound in November 2016 led to a more realistic currency valuation, thus instantly improving the conditions for investors. One of the positive side effects was that the conditions for accessing the Egyptian market became much more favorable for Europeans, and the banking system was better supplied with foreign currency.

The development in Egypt and the Arab Mediterranean countries has enjoyed financial and political support, in particular from Europe. This is because Egypt is not only the largest Arab state but also a comparatively peaceful center where planning is possible.

Large-Scale Development Projects are Placing High Demands on the Supply and Disposal Infrastructure

Egypt has launched a number of large-scale projects in recent years in order to develop its economy. The expansion of the Suez Channel has further strengthened Egypt’s role as the region’s hub and attracted further investment, for example, from China, Russia, Germany, France, and Italy. The government is also pursuing sustainable infrastructure policies for the rest of Egypt.

In order to reduce the strain on the overcrowded megacity Cairo, there are plans to build an entirely new capital city 50 kilometers to the east, located between Egypt’s cultural and historical center and the Suez Channel. There is no master plan for the entire region yet, but initial steps towards creating the new megalopolis have already been taken.

The development of the new industrial center “Golden Triangle Project”, located between Qena, Safaga, and Al-Qusayr, has also already begun. This area is home to three quarters of the country’s mineral reserves. At least 200,000 new jobs are to be created here.

In 2016, around 90 percent of Egypt’s inhabitants were connected to the country’s water supply. Continued expansion of the sewage system is to be intensified. But with a leakage rate of up to 50 percent, most of the existing networks also need to be modernized. Using traditional methods to perform these renovations is largely unfeasible, in particular on the narrow streets of the old and overpopulated city.

The World Bank and the African Development Bank are providing support in form of various funding programs, for example, by providing more than USD 1.5 billion for the continued expansion of the sewage system.

Ø Oil discovery in the Western Desert: According to media reports, the Egyptian General Petroleum Corporation (EGPC) has announced the discovery of oil in the Abu Sinan region in the Western Desert. It is estimated that recoverable reserves amount to around 2.2 million barrels of oil and 11 billion cubic feet of gas. Production capacity amounts to around 1,358 barrels of oil per day. The EGPC now intends to carry out further drilling to locate additional oil sources near the oilfield.

Ø Zohr gas field: The Zohr gas field was discovered around 190 kilometers off the coast of Egypt in 2015. Spanning 100 square kilometers and with an estimated gas volume of 850 billion cubic meters, it is the largest gas field ever to be discovered in the Mediterranean. Located in Egyptian territorial waters, it was discovered by the Italian oil and gas company Eni in a region with ca. 1,500 meters water depth. The borehole was 4,000 meters deep. According to experts, this gas field, along with adjacent gas fields in Israeli and Cyprian territorial waters, could form a new gas extraction region in the eastern Mediterranean. Joint pipeline transports to central Europe are being considered.

Ø Household Natural Gas Connection Project: The World Bank and the Natural Gas Holding Company are aiming to connect households to a low pressure gas network by 2019. The project has been ongoing since 2014. Overall cost is ca. USD 1.5 billion.

Ø Investments in the energy sector: The energy sector is a great priority for the Egyptian government. By 2022, investments of around USD 70 billion are to be made for projects such as those mentioned above.

Further realization requires a lot of know-how and appropriate technology, which Egypt is also sourcing from outside the country. This presents a wealth of opportunities for European businesses to engage with the country and to create long-term partnerships.

The Pipeline-Pipe-Sewer-Technology Conference & Exhibition (PPST)

Close collaboration with relevant ministries in Egypt and professional organizations in the region

Under the patronage of Egyptian ministries and in cooperation with the German-Arab Chamber of Industry and Commerce (MENA), the EITEP Institute in Germany has taken the increasing stabilization of Egypt and the region as an opportunity to organize a conference and exhibition on pipeline, pipe, and sewer technologies under the patronage of the Ministries of Water and Petroleum. This new event titled “Pipeline-Pipe-Sewer-Technology Conference & Exhibition” (PPST) will take place September 17 – 19, 2017 in Cairo.

The focus of PPST is on the maintenance and repair of existing systems, as well as the sustainable and responsible creation of new systems in the oil and gas sector and the water and sewage sector. In accordance with the agenda put forward by the Egyptian government, the event will address both proven and new technologies. Aside from solutions and project examples, there will also be a detailed overview and discussion regarding the current situation in the region.

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