Egypt Oil and Gas Downstream Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Egypt Oil and Gas Downstream Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Egypt's oil and gas downstream market is expected to grow at a CAGR of more than 5% during the forecast period. Factors such as supportive government policies, efforts to grow the downstream sector coupled with upcoming projects, are expected to drive the market studied. However, the high capital investment required coupled with a lack of financing due to a global economic slowdown in the event of the COVID-19 outbreak is expected to hinder the growth of the market in the coming years.

• The Refineries segment held the major market share in 2019, and it is likely to dominate the market during the forecast period.
• Favorable policies for investment by private players in the sector is expected to provide a significant opportunity for the market players.
• Growing oil and gas consumption in the country is expected to be the major driver for Egypt Oil and Gas Downstream Market.

• Refineries sector has dominated the Egypt oil and gas downstream market in recent years and is expected to continue to do so during the forecast period too.
• The Government of Egypt has adopted a strategic policy to expand the refinery infrastructure in the country, which includes the development of new refineries and upgradation of existing ones, which, in turn, is anticipated to proliferate the downstream industry in the country.
• The refineries in Egypt are old and have remained underutilized for years. Therefore, improvement is key to the development of Egypt as the energy hub in the region. Currently, the refineries in Egypt, mostly process the crude oil that is domestically produced, and the refined products are sold to local markets.
• The existing refineries in the country are required to be upgraded to produce high-end products, such as diesel, LPG, or gasoline. The current set up of the refinery plants in the country does not meet the EU market standards for vehicle fuels that ensure the emissions are within acceptable limits. Hence, the upgrading of refineries is likely to benefit future exports from the country.
• In 2018, the state-owned oil company ENPPI, the Assiut National Oil Processing Company (ANOPC) signed a deal with Italy-based Technip to set up a USD 1.9 billion refinery complex, which is expected to be the largest in the country’s south. The project after completion is anticipated to process 2.5 million metric ton of heavy fuel oil mazut annually from the Assiut refinery that would produce over 400,000 metric ton of naphtha for high-octane gasoline, 1.6 million metric ton of Euro-5 diesel, 330,000 metric ton of sulfur, and 101,000 metric ton of butane.

• Egypt is a developing country and has witnessed a significant increase in its oil and gas consumption in recent years, mainly due to the rise in the industrial and commercial sectors and increasing population.
• Though the oil consumption in the country has remained somewhat stagnant between 700-850 thousand barrels daily during the last decade, it is slowly rising and is expected to show significant growth during the forecast period. Gas consumption in the country rose by over 44% from 40.9 billion cubic meters in 2009 to 58.9 billion cubic meters in 2019.
• The rapid increase in demand for gas is expected to go on during the forecast period and even beyond, fueled by increase economy, industrial sector, and commercial sector.
• In 2018, the country signed an important energy MOU (memorandum of understanding) with the European Energy Commission, the European Union (EU), thus becoming an energy hub in the region. In recent years, the country has been able to sign concession agreements with international companies, which are driving the oil and gas sector.
• All of the above factors combined are expected to help drive the Egypt oil and gas downstream market during the forecast period.

The Egypt oil and gas market is consolidated. Some of the key players are Egyptian General Petroleum Company, Royal Dutch Shell, Total SA, ExxonMobil Corporation, Egyptian Petrochemicals Holding Company, among others.

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