The Ministry of Petroleum adopts a wise strategy aiming to expand the utilization of natural gas so as to displace imported liquefied fuels such as diesel & LPG in addition to the growing concern for preserving the environment.

The electricity sector is the largest gas consuming sector where gas consumption has reached almost 20.8BCM representing 61% of local natural gas consumption.

The fertilizers sector is totally dependent on natural gas; where it is used as fuel and feed stock for production of ammonia and urea. Total consumption has reached almost 2.9 BCM. Natural gas is feedstock for the petrochemicals industry as well.

Natural gas is also used as feedstock and fuel for iron and steel industry as well as several other industries like cements, ceramics, textiles and glass.

Total consumption of natural gas by various industries has reached almost 335.5 BCF representing 26% of Egypt's total consumption compared to 307BCF during 2004/2005 with an approximate growth of 9.2%. Worth mentioning in this regard is that the domestic consumption has exceeded its planned figures where the overall gas consumption has achieved 104% of the plan.

During 2005/2006 110,000 households, commercial and industrial units were connected to natural gas bringing the total number of consumers to 2.3 million in June 2006; this figure was achieved during the past twenty five years in 17 governorates, out of which 1.3 million consumers were connected during the past six years.

In 2005/2006 total domestic gas consumption has reached 22.1 BCF representing 2% of local consumption compared to 20.8 BCF during 2004/2005.

Egypt's experience with using natural gas for vehicles has been applauded worldwide. This process is inline with ministry of petroleum's overall strategy to rationalize the use of gasoline and abate pollution using natural gas as a clean fuel.

A total of 8465 vehicles were converted to CNG representing the highest record achieved during the past five years. The total number of converted vehicles since the start of this activity until June 2006 has reached 70000 with a 10% increase over last year.

Vehicles consumption CNG reached 10.8BCF in 2005/2006 representing 1% of local consumption compared to 10.4BCF during 2004/2005. This activity was expanded to cover 16 governorates countrywide.

A total of 12 CNG fueling stations were built in 2005/2006 compared to 11 stations in the last year bringing the total to 103 stations representing a 12% increase over last year.