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Operation and Networks

Operation and Networks

Operation & networks

(Gas Processing, Transportation, Distribution & Marketing, LNG Import, Export & Liquefaction.)

The main Objective for the Operation and Network department is setting strategic plans for handling natural gas operations and its monetization aiming at securing gas for local market, exploring viable opportunities for maximizing the natural gas added value, applying the optimum standards for energy efficiency and exploiting attractive opportunities for gas export through the utilization of the existing infrastructure (Pipeline/LNG facilities).

This objective is achieved through a number of activities/responsibilities as follows:

1-Gas Development and Downstream Operations

  • Participate in the review, evaluation and follow up of the development plans of natural gas fields.
  • Develop short and long term master plans / supply & demand forecast for the produced sales gas.
  • Ensure that all strategic plans are aligned with Egypt National Energy Strategies and energy efficiency measures.
  • Secure the strategic needs of natural gas for power generation plants and major industrial consumers. 
  • Prepare strategic investment plans for upgrading gas networks in coordination with the transmission and distribution network operators.
  • Manage, supervise and follow up the operations and maintenance activities of the existing gas networks.
  • Analyze the downstream gas market, identifying the final consumers and manage all the relevant commercial arrangements for their supply with natural gas including any contractual forms.
  • Encourage the conversion of vehicles to use natural gas as a fuel and prepare the relevant plans in coordination with operating companies.
  • Prepare periodic reports on all gas midstream and downstream activities.
  • Coordinate with all concerned entities regarding the downstream gas market activities (Supreme Energy Council, Industrial Development Authority, Gas Regulatory Authority…)

2-Operations of Natural Gas Facilities & added value projects

  • Prepare technical studies for enhancing Natural Gas value chain and evaluate the optimum options for gas utilization.
  • Monitor the daily operations and performance of all natural gas processing facilities and explore possible modifications to maximize plants' efficiency.
  • Participate in the review and evaluation of new gas projects (NGL, LNG, GTL...)
  • Secure the gas needs for petrochemical projects.

3-Quality Control

  • Conduct quality control on all laboratories within the gas processing facilities to ensure compliance with standard specifications
  • Monitor the compliance of produced sales gas and other products (LPG, condensate, commercial propane and ethane/propane mixture) with standard quality specifications as included in the sales contracts.
  • Prepare daily/monthly/annual reports on gas analysis and calculate the average heating value of sales gas.

4-Gas Import and Export

  • Manage all contractual arrangements/obligations for import and export of Natural gas, LNG and commercial propane
  • Participate in preparing tender packages and evaluating received bids for importing LNG cargos to secure the local demand requirements.
  • Participate in handling the LNG import requests and in issuing the relevant approvals for third parties.
  • Implement action plans of Egypt's Hub strategy by capitalizing on the existing export facilities and pipelines including all negotiations and discussions with stakeholders.
  • Study the different options for natural gas monetization.
  • Attract new investments to  the LNG business.
  • Manage the operations and commercial aspects concerning the import facilities. 

5-Database

  • Manage/update a comprehensive system for treating all data/information related to the natural gas activities.
  • Coordinate with other departments/entities to ensure the accuracy of the information stored in the database.

 

Major Principles

Local Gas Consumption

As for providing the needed energy for community development, a reflection of the increase in the rate of economic growth, mirroring a rapid increase in consumption across all sectors of the country. The strategy of Egyptian petroleum sector focuses on the local market demand and gives it absolute priority. Total local consumption of natural gas in 2017/2018 reached 2101 BCF. 

 

Natural Gas Consumption Sectors:

Electricity Sector

Electricity Sector is the largest gas consumer, where natural gas consumption reached 1317 BSCF (3608 MMSCFD) representing about 63 % of total local gas consumption.

Industry Sector

Natural gas consumption by industry sector reached 474 BSCF (1298 MMSCFD) representing about 22% of total local gas natural (Fertilizer 211 BSCF - Iron & Steel 66 BSCF - other industries, Refractories & Cement 197 BSCF).

Petroleum Sector

Natural gas consumption by petroleum sector (Petroleum & Petrochemical Companies – Methanol & Gas derivatives) reached 214 BSCF (585 MMSCFD) representing 10% of total local natural gas consumption.

Residential Sector

Natural gas consumption by residential sector reached 83 BSCF (225 MMSCFD) representing 4% of total local natural gas consumption.

CNG Sector

Natural gas consumption by CNG sector reached about 14 BSCF (38 MMSCFD) representing 1% of total local natural gas consumption.

Gas export and import

No quantities of Natural Gas were exported through pipelines in year 2017/2018 due to the reversal of the gas line as a result of the Reverse Flow Project from Jordan to Egypt, which began on 6 August 2015.  LNG exported in year 2017/2018 reached 40 BCF (Equivalent Gas to LNG exported) by 10 cargoes.  Commercial Propane (Derivatives) exported in year 2017/2018 reached 426 Mtons (in 119 cargoes).   Total LNG imported in year 2017/2018 reached 10501 thousand cubic meter (4644 Mtons) in 75 cargoes  Total Gas sent out from gas import to National Grid reached 221 BCF.

 

Gas Derivatives:

  • Condensate production reached 30.7 MMbbl/Y (average 84.01 MbblD)
  • Ethane/Propane production reached 1136.2Mtons (average 3113 Ton/D)
  • Propane production reached 583.5 Mtons (average 1599 Ton/D)
  • LPG production reached about 1.3  MM ton (average 3560 Ton/D)