Memorandum of Understanding to strengthen cooperation on gas-flaring reduction and energy efficiency
The European Bank for Reconstruction and Development (EBRD) is strengthening the business environment for sustainable energy investment in the oil and gas sector in Egypt.
The EBRD signed a Memorandum of Understanding (MoU) with the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS) and the Ganoub El-Wadi Petroleum Holding Company (Ganope) under the auspices of the Ministry of Petroleum of Egypt.
Under the accord the EBRD will serve to strengthen cooperation between the parties in order to reduce the level of greenhouse gas emissions and air pollution, help with the implementation of international best practices and standards, increase the competitiveness of the sector and contribute to energy security in Egypt.
The Bank will conduct an evaluation study on reducing associated petroleum gas (APG) flaring, which will include the preparation of a number of potential case studies and a national workshop to disseminate the results. Other areas of cooperation will include improving the energy efficiency of the country’s refineries and raising the environmental, health and safety standards applied in the oil and gas industry. The EBRD and other parties to the MoU will exchange information and explore opportunities to improve legislation, with the aim of fostering further investment and implementing sustainable energy activities.
Riccardo Puliti, EBRD Managing Director, Energy and Natural Resources, welcomed the signing and said: “This is an important milestone as it marks the beginning of an ambitious cooperation aimed at reducing gas flaring and improving environmental standards in the oil and gas sector of Egypt. The MoU will also help to identify and develop new projects that can improve energy efficiency along the hydrocarbon value chain in the country.”
Tarek El Molla, CEO of EGPC, commented: “It is our privilege to sign an MoU with the EBRD. The document reflects our mutual and successful cooperation to provide sustainable energy investment that will improve energy efficiency along the hydrocarbon value chain in the Egyptian oil and gas sector. We aim to raise the quality of oil products, strengthen energy security, and decrease the level of greenhouse gas emissions and air pollution according to international best practice and standards. All this is in line with the Economic Recovery Plan, launched by the government of Egypt, that seeks to restore the country’s macroeconomic stability.”
Since the beginning of the EBRD’s operations in Egypt in 2012, it has committed over €742 million to 23 projects across a wide range of sectors. The Bank has also facilitated direct technical assistance through its Small Business Support programme, which to date has benefited approximately 185 Egyptian small and medium-sized enterprises.