Egypt imports oil to reduce energy shortages

Egypt’s planning ministry revealed that the country was estimated to import crude oil, liquefied natural gas and various other oil products in the 2015/16 fiscal year, amounting to a total of 28.6 million tonnes, which is valued at R203 billion, news agency Reuters reported.

The economic development strategy for the current fiscal year, which was rolled out July 1, highlighted that the state intended to purchase 7.79 million tonnes of liquefied natural gas for R51 billion; and 6.37 million tonnes of crude oil for R51 billion, Reuters reported.

According to the United States Energy Information Administration (EIA), Egypt is the largest oil producer in Africa outside of the Organisation of the Petroleum Exporting Countries (OPEC) and the second-largest natural gas producer on the continent, behind Algeria.

Despite this, Egypt’s lack of investment into the energy sector has seen the country turn from an exporter to an importer, and power and utility journal ESI reported that natural gas shortages at electricity plants during Egypt’s 2014 summer season resulted in government reducing the load on the national grid by cutting off power.

In July, Russia-based oil company Rosneft signed a two-year contract to supply an estimated 3.5 million tonnes of liquefied natural gas, which should help reduce the energy shortages, reported Reuters.