Egypt is working on the supply of natural gas to export it abroad, so it has increased the consumption of Russian fuel oil at power plants to the highest level in 5 years.
Russian fuel oil releases massive amounts of carbon dioxide when burned, but Egypt relies on it to generate more electricity at a lower cost than the cost of the gas it prepares for export, helping to save hard currency, according to information from the Specialized Energy Platform.
According to the Agency for Regulation in the Electricity Industry and Consumer Protection, the level of consumption of Russian fuel oil (diesel fuel) in the electricity balance in October 2022 reached about 20.95%, which is the highest since September 2017, when the share of diesel fuel reached 22.82% in the energy balance.
According to data published by the Joint Organizations Data Initiative (JODI), demand for Russian fuel oil in Egypt reached its highest level in 4 years and amounted to 135,000 barrels per day in September 2022.
Russian fuel oil deliveries to Egypt also rose in the current 2022 to 1.17 million barrels in June 2022, the highest level tracked by global Refinitiv shipment data, which was first published in April 2015. .
In June (2022), Egypt signed an agreement with the European Union and Israel to increase LNG sales to Europe due to Europe’s growing demand for natural gas to replace energy imports from Russia.
The Egyptian government has announced that it is in the process of rationalizing gas consumption rates and replacing it with other alternative fuels, including Russian fuel oil, which has been imported in large quantities in recent months.
Notably, Egyptian Prime Minister Dr. Mostafa Madbouli announced at a press conference in August 2022 that, according to information received by the Specialized Energy Platform, Egypt is expected to export 15% of its gas.
Fuel oil, a mixture of heavy hydrocarbons containing toxic substances such as sulfides and heavy metals, is becoming an alternative fuel because it can be decomposed to produce diesel fuel.
Source: agencies