EGYPT S MARKET EVELOPMENT - IGU Egypt... · Egypt Qatar Kurdistan, Iraq Sudan* Libya* UAE* Jordan*...
Transcript of EGYPT S MARKET EVELOPMENT - IGU Egypt... · Egypt Qatar Kurdistan, Iraq Sudan* Libya* UAE* Jordan*...
EGYPT’SGAS MARKETDEVELOPMENT
Eng. Khaled AbubakrMiddle East & Africa Regional Coordinator, IGU
Chairman, Egyptian Gas AssociationChairman, TAQA Arabia
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Egypt’s Gas Industry Milestones
In 2014, Natural Gas share in Egypt total Energy Consumption: 52.5%
1st gasDiscovery
1967 1976 1981 1992 1996 2003 2012
1st
Industrialcustomer
1st
Residentialcustomer
1st CNG Vehicle
Private LDC
1st Gas Export
1st FSRUTender
2015
1st LNG import
Celebrating 40 years in 2016
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Gas Usages
Gas GridLocal Distribution
Gas Delivery
Fertilizers
Industry
CNG
Domestic
Power
Gas Value Chain in Egypt
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Accelerate Existing Gas Development
Total Investment: $21.8 bn Total Production: 3,600 MMSCFD Total Condensate Production: 86.7 MBBL/D
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East Med.: Major Fields
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Gas Transmission Grid , reached 40,000 km in 2016
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Abu sir
West Abu Qir
North Idku
RavenScrab/safron
LNGDamietta
Arish &El masaid
Baltem
Port said
Hap’y
Theka
North Bardwell
Akhen
Naf
Roseta
El Sheikh Zowayed
East Port Said P.S & Ind. Area
East Gas
Flower
North SinaiHelm
Temsah
Talkha
Shabshir
Abu MadiAbu Qir
Abu Hommos South El Mansoura
Mahmudiya
Qara
Tanta
SouthBelquas
Abu sultan6 October
QusinaBanhaSadat
Suez
A’youn Moussa
Mostorud I-A
Tebbin
Koraymat
Ras BakrBeni Suef
Za’frana
October
Unit 103El Menia
Assuit
Unit 104
Unit 108
Zeit bay
Abu Rudis
Morgan
Ramadan
Esma 8
AgibaSea bird
Shoab Ali
Badri
Esma 2
Sinai Cement & industrial Area
Sedi Krier
Ameriya
King
El-Max
Intergene
BorgElarab
Ameriya Cement
12“- 14 Km
El obyed
Salam
South Aum Barkah
El Qasr
Tarek
Bed - 2
Abu Sannan
South Dab’aaMeleha Deep
Bed - 3Bed - 1 265 Km 24“-
Qena
LuxorAswan
Kima
Hurgada
Safaga
Cairo
Neag
A/GHKaroun
SouthEl-Tina
WestEl Tena
Jordan
DeniseTaurt
El GamilUGDC
South El Manzala
Shams
Saffaire
Simian/ sienna
Fayroz
Robi
Tarouse
Theth Med. South East Fields
Vegas fields
Desouk
A/RSuco
Belayim
Wastani
Fayoum
El Sokhna
• Existing . PL• Under cons. PL• Future. PL (5 Years)• Gas fields• Future Gas Fields• Facilities• Distribution Stations• Power stations• Industrial Areas• Consumer• Distribution Co.• Export
Ameriya
24“- 26 Km
18“- 12 Km
16“- 9 Km
24“- 26 Km
24“- 26 Km
32“- 160 Km
24“- 14 Km
30“- 26 Km
22“- 87 Km
24“- 25 Km
32“- 75 Km
24“- 215 Km
32“- 85 Km
28“- 86 Km
42“- 40 Km
30“- 28 Km
16“- 256 Km
16“- 192 Km
24“- 10 Km
22“- 40 Km
24“- 50 Km
36“- 196 Km
36“- 264 Km10 BCMY
20“- 660 Km
20“- 40 Km
12“- 40 Km
National Oil, Gas Grid & Facilities
Dahshour
Nubariya
North Port Said
Port Fouad
Sharm El Shikh
Suco
West Aswan
Ras Shukir
El Fayoum Offtake
Deshna
Quos
New Assuit
Upper Egypt P/L930 km, 1 Billon $
Total Length is 18000 Km with Capacity of 190 MM meter3/D In June 2012
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East Med.: Infrastructure
Kills
DamiettaLNGIdku
LNG
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Amman
Aqaba
HomsBaniyas
Ashkelon
Aphrodite
Zohr
LeviathanTamar
Ceyhan
IzmirTo Bulgaria Ankara
Kayseri
AntalyaKilis
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• Secure LNG imports to bridge theshort/medium term gap.
Clients Benefits:
• Trough two FSRUs, one with a capacity of 3 BCMY, the other with capacity of 7 BCMY
• Both are located in Sokhna Port, Red Sea
FSRU:
Gap Supply
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Demand & Consumption Evolution
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Gas to end users
• FactoriesMedium Heavy
- Chemical - Steel- Paint - Cement- Textile - Fertilizer- Food
Fuels substitution & conversionWater heating Space heating
Cooking Steam Generation
Furnaces Manufacturing Process Heat
Refrigeration Gas-fired Air-conditioning
Natural gas will replace:
• Diesel for water and central heating
• LPG for heating and cooking
• Fuel oil and diesel for industrial applications
• Gasoline in cars
Residential
Commercial
Industrial
• Apartments• Houses• Villas
• Hospitals• Schools and Universities• Offices• Restaurants• Bakeries etc.
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Ensuring power generation security
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GASCO
Power Stations HouseholdsIndustrial
FactoriesCommercial
Establishments
EGAS
20-25Y Concession Agreement to :Finance, design, execute, operate& maintain Gas Networks
Manage, operate andmaintain the EgyptianNational Gas Grid
Transportation Vehicles
Gas Supply Contract
Agreement for :Gas Delivery & Metering
Gas Midstream & Downstream Market Structure
Gov. guarantees 18%IRR for LDCs (+ O&Mcosts +5Y tax exemption)
Local DistributionCompanies
EPCs
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Gas Distribution – Deregulation Development
The Main National Grid / Trunk line is constructed & Operated by GASCO (on behalf of EGAS)Everything down stream of the Pressure Reduction Station is within the cost of the LDC connection rate. Payments made “per converted customer”
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OverseasGas Maya Gas
Gas Contractor
LDC
Gas Distribution – Market Players
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From ONE state monopoly …
… to 14 private sectors & 5 state-owned LDCs/EPCs
Development of the Egyptian Gas Distribution Sector
Off Take
P.R.SRegulator
Regulator
Typical Downstream Gas Network
Ongoing Distribution ActivitiesApprox. 3.5 Million customers connected
Over 1 bn $ of Foreign & Local investment
16 Egyptian Governorates covered by Gas networks
600 MM $ /Year Saved in subsidies
Enhanced HSE Standards
Introducing new technologies
Attracting the Multi-Nationals
Social Investment – Jobs/Employment - Environmental
Provide a better quality of life for Egypt’s citizens
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Market based Incentives: CNG Smart Card
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Mechanism
Financing 100% of cost of conversion throughcommercial lending on a debit card to bepresented at fueling stations by convertedvehicles’ drivers
Increase
No. of Vehicles Converted
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CNG
LNG
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Gas CNG Mobile
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Scope:• Using absorption chillers / heater units• BOO District cooling projects• 250 000 Ton
Clients Benefits:• Saving of 30-40% of operating cost
compared to electricity driven chillers• Less building Capex & Opex• Less Power • Less maintenance & staffing• Economical operating costs• No chillers noise & vibration• Space saving in the buildings
District cooling consists of 3 main parts:
Plant
Gas District Cooling
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Synthetic Natural Gas (LPG+Air) Distribution Network
R
R
R
R
SNG StationLPG Tank
SNG =
LPG + Air
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SNG Ready to use
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Gas Regulatory Affairs
April 2016
25Gas Regulator Affairs, Consultation Event_27 Jan 2016
The Law will:
Regulate downstream gas activities.
Introduce Third Party Access principle (TPA).
Gradually open up the gas market and introduce competition.
Establish a Gas Regulator to monitor the functioning of the
new gas market.
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Scope of Application
26Gas Regulator Affairs, Consultation Event_27 Jan 2016 7
Shippers:(EGPC/EGAS, Shipper A, B, …)
Transmission System Operator “TSO”
Distribution Network Operators
Consumers
Gas Regulator
Suppliers:(EGPC/EGAS, Supplierr A, B, …)
New Gas Market Framework
Tran
smis
sion
Tarif
f
Tran
smis
sion
N
etw
ork
Cod
e
Dis
trib
utio
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ode
Dis
trib
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riff
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Establishmentof
GasRegApproval of Codes
Monitoring Gas Market
Disputes Settlement
Setting Tariff MethodologyCharacteristics
Establishment of Gas Reg (1/2)
Activities
Issuing of licensesEstablishment
ofGasReg
Gas Regulator Affairs, Consultation Event_27 Jan 2016
Neutral & transparent Independent Implementing
Authority
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TAQA Corporate Overview
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TAQA Arabia Group
62.5% 37.5%
Regional / Gulf Funds &
Co-investors
Paid-in capital is EGP 676 MMApproximatelyEGP 2.3 bn investments
23 companies acquired and incorporated
3,400 employees
Selling5.4 BCM of distributed gas
Supplies gas to around 600K customers
Gas EPC works for 1 MM customers
Manages gas concessions in 11 Egyptiangovernorates
580 MW of contracted distribution andgeneration capacity in addition to 376MW distribution O&M capacity
37 Oil & CNG fuel stations
Operations and previous experience in 7MENA region countries.
Facts & Figures Shareholding Structure
PowerGeneration & Distribution
FuelMarketing
GasDistribution EPC
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TAQA provide a full spectrum of energy
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TAQA Arabia Local Footprint
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Current FootprintEgyptQatar
Kurdistan, IraqSudan*Libya*UAE*
Jordan*
Pursuing OpportunitiesMozambique
KenyaTanzaniaRwandaZambia
UgandaGhana
* No current operations but have previous experience
TAQA’s Regional Presence
TAQA Arabia Group’s success hinges on a unique and highly defensive business model with a leading market position in Egypt with significant growth potential regionally…
TAQA Arabia Regional Footprint
TAQA’s Regional Gas Projects
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Vision To be the preferred regional energy services and solutions provider, and to become the key
player in the sustainable development and economical progress of MENA, Gulf and Africa.
Mission
To provide high quality services and products to meet the growing energy demands of theregion through our ethical practices and professional team in a way that would guaranteethe highest value for our customers and secure our growth and success and the highestreturn for our shareholders.
TAQA Arabia "One-Stop-Shop" Energy Solution
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Gas Sector Overview
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Damietta130,000
El-Sharqueyia144,000
Kafr El-Sheikh75,000
Suez150,000
Ras Ghareb4,500
Hurghada51,000
Fayoum65,000
Beni-Suef85,000
El-Menya86,000
Assiut114,000
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TAQA Gas – Technical Facts & Figures
PRMS156
SmallPRS382
Pipelines(meters)
2,950,000
External Installations
Pipelines(meters)
3,852,000
InternalInstallations
Pipelines(meters)
3,855,000
Water Heaters317,000
Connected Appliances1,000,000
Cookers650,000
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Operation & Maintenance:
HP Transmission Pipelines
MP/LP Distribution Networks
Tank System
24 /7 Emergency
Customers Invoices & Billing System
Customer Service
Gas Marketing
Technical Assistance for Industry and
touristic developments
TAQA Gas – O & M Services
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TAQA Gas - Natural Gas Commercial Applications
Offered Applications: Central Heating Pool water Heating Steam Generation for Laundry Conventional water Heaters &
Cookers
Central Water Heating SystemsPool Heating Systems
TAQA executed boilers &water heaters works formore than 1,500customers, includingresidential, commercial &touristic developments.
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Four Seasons Hotel – Cairo Radisson SAS Taba Hotel Modern English school New AUC Katameya Heights Resort Mirage City Resort Arabella Resort Beverly Hills Resort Al Nada Resort Al Karma Resort October Hills Resort Dream Land Resort
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TAQA Gas – Sample of our Commercial Customers
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TAQA Gas – QHSE
TAQA adopts a people, process and system approach toquality management. Our Quality Management andOccupational Health and Safety Management Systemshave been independently audited. TAQA construction andGas activities are an ISO 9001, 14001 & OHSAS 18001certified companies
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2 Simon Bolivar Sq, Garden City , 8th floor
Tel: (202) 2796 1494 Fax: (202) 27962821www.taqa.com.eg
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