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  • Government spokesman: Energy price rises due to Russia-Ukraine crisis will benefit Egypt

Government spokesman: Energy price rises due to Russia-Ukraine crisis will benefit Egypt

A man looks as the world’s biggest Liquefied Natural Gas (LNG) tanker DUHAIL as it passes through the Suez Canal, April 1, 2008. (Reuters)
A man looks as the world’s biggest Liquefied Natural Gas (LNG) tanker DUHAIL as it passes through the Suez Canal, April 1, 2008. (Reuters)
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28 Feb 2022 01:02:33 GMT9
28 Feb 2022 01:02:33 GMT9
  • Egypt is looking to consolidate its position as a gas producer for Europe, as it is working on a joint agreement with Cyprus and Greece to export gas
  • Ambassador Nader Saad confirmed the formation of a crisis room to follow up on the Russian-Ukrainian crisis and its impact on Egyptian interests
Mohammed Abu Zaid

CAIRO: Ambassador Nader Saad, a spokesman for the Egyptian government, said that the rise in energy prices due to the Russian-Ukrainian crisis may benefit Egypt, adding that “it is possible to export the largest amount of natural gas we have.”

He continued, during television statements to ON TV yesterday evening, that “it is possible to benefit from the price difference and the hard currency,” explaining that “this would be distinguished economic thinking to export the largest amount of natural gas that exists in Egypt after taking into account the needs of factories and the use of alternative energy.

“A meeting was held with the governor of the Central Bank to check on the availability of hard currency necessary to secure our needs of strategic goods, especially since the hard currency that was coming through Russian-Ukrainian tourism was affected,” Saad said.

He pointed out that the Central Bank and the government are working together in these difficult circumstances to secure Egyptian needs, adding: “We hope that the crisis will not extend for a long time so that we do not put too much pressure on the budget.”

Egypt is looking to consolidate its position as a gas producer for Europe, as it is working on a joint agreement with Cyprus and Greece to export gas, linking Greek and Cypriot fields with Egyptian liquefaction stations, to be a gateway for Egyptian gas to Europe.

According to a statement by the Egyptian Cabinet in mid-February, liquefied natural gas exports witnessed significant growth, reaching 6.5 million tons in 2021, compared to 1.5 million tons in 2020.

Egypt and Israel are also studying the construction of an offshore gas pipeline to the Damietta facility, and the Idku liquefaction facility in Egypt, to help export to Europe. Cairo is also working with Lebanon and Jordan on the Arab Gas Pipeline project to solve the Lebanese energy crisis, as it is expected to pump about 1.5 million cubic meters to Lebanon, according to statements by Egyptian Petroleum Minister Tarek El-Molla.

Saad confirmed the formation of a crisis room to follow up on the Russian-Ukrainian crisis and its impact on Egyptian interests, explaining that it is primarily following “the situation of Egyptians in Ukraine, led by students, then wheat and how to secure our wheat needs in light of these circumstances.

“The third aspect is international oil prices and their effects on the Egyptian budget. We hope to bring back the Egyptian students in Ukraine today,” he said.

“The eastern, southern and central regions are currently the most dangerous, and the Egyptian Embassy in Kiev instructs people to stay home because the roads have become unsafe. The Egyptians in the west of the country have it relatively easier,” he added.

Nabila Makram, minister of state for immigration and Egyptians abroad, said the government “is now studying sending Egyptian planes to evacuate students who have fled to Ukraine’s neighboring countries.

“There are 22 students who crossed to Poland, while 100 arrived in Romania and there are 1,000 students waiting to arrive in Bucharest,” she said, adding that “there is coordination between state agencies regarding the Egyptian community in Ukraine, and security precautions and the safety of citizens are taken into account.”

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