Minister of Petroleum and Mineral Resources Sherif Ismail said there are challenges which faced by the petroleum sector during the current period, representing in the major challenges in the energy mix, which is a non-economic and non-secure, noting that it is necessary to attain several energies sources.
He has added today in a key note speech at Future and investment opportunities in new and renewable energy conference that the current mix of energy is based on 95% for petroleum products and natural gases and 90% for generating electricity.
Ismail explained that it is schedule to cooperate with the electricity ministry so as to depend on alternative energy sources such as nuclear energy and coal, in addition raising the production rates.
He asserted that it must be a growth in energy sector from 7% to 8%, noting that there is15% reduction in production rates so the sector should attain more than 22% growth so as to achieve the targeted rate.
The conference aim is to inform participants about the new technology used in renewable energy, and also about companies operating in different energy fields such as solar, wind, waste and shale oil.
The conference will discuss the major challenges facing the sector’s growth, which includes fair pricing in production, as well as providing incentives, guarantees, and legislation that will help in increasing the pace of growth in producing the renewable energy, and meet increasing local demand at the same time. The latter will be of particular importance during times in which traditional energy faces supply cuts and the huge finance requirements which increase the pressure on the Egyptian budget deficit, which lies above EGP240 billion.
Ismail pointed out that it is schedule to produce 1800 cubic feet natural gas by the end of 2014, including 1000 million cubic feet natural gas to compensate the deficit of production rates and producing 800 K cubic feet natural gas, as a boosting in production rates.
Furthermore, he pointed out that 29 petroleum agreements will be signed within 6 months in order to increase the area of research and exploration.