Egypt Considers Merger of Petroleum and Renewable Energy Ministries to Enhance Industry Efficiency

In a move aimed at streamlining operations and regulations within Egypt’s energy sector, the government is contemplating the merger of its petroleum and renewable energy ministries to establish an integrated Ministry of Energy.

Speaking at the Invest in African Energy (IAE) Forum in Paris, Mohamed Fouad, CEO of Egypt Oil and Gas, Secretary General of the Egyptian Gas Association, and Marketing & Communications Committee Chairman of the International Gas Union, highlighted the potential benefits of the merger, stating that it would "make discussions and open dialogue with international companies much more efficient."

The proposed merger reflects Egypt's evolving energy landscape, driven by a desire to increase the share of renewable energy in its predominantly gas-based energy mix. Fouad emphasized the country's commitment to renewable and clean energy investments, as well as its focus on achieving a balanced energy mix that benefits both Egypt and the wider region.

Echoing Egypt's approach, various North African countries are prioritizing integrated energy solutions that combine hydrocarbon and renewable resources. Adonis Pouroulis, CEO of Chariot Energy Group, emphasized the importance of incorporating both renewables and gas in the energy mix. “Morocco is the leader in Africa in renewable energy, but to support baseload power, you need gas and you need hydrocarbons. With hydrocarbons as your baseload, you can be more relentless in new technologies going forward because we will need all forms of energy to not only power Africa but the rest of the world,” he said.

To support comprehensive energy development, investments in infrastructure are crucial. Fouad stressed the significance of reliable and cost-efficient infrastructure, emphasizing its role in attracting energy investments and adding value to the sector.

Morocco, a leader in renewable energy production, is spearheading cross-border infrastructure projects, including the Nigeria-Morocco Gas Pipeline. Pouroulis highlighted the pipeline's importance in facilitating cross-border collaboration and infrastructure development across Africa.

Meanwhile, Libya is focusing on increasing oil production, with numerous projects underway to expand its energy sector. Zakaria Albarouni, General Manager at Al Baraka Insurance, emphasized the importance of tailored insurance services to meet the needs of both onshore and offshore energy projects, ensuring comprehensive coverage against unforeseen events.