Written by: Ahmed Abdel Salam
Attention in Egypt's energy sector is turning towards studying new options to operate power generation plants, in a step aimed at achieving higher efficiency and rationalizing financial costs to face challenges associated with global fuel prices. Current trends focus on the possibility of expanding the use of mazut as an alternative to natural gas in specific periods, which contributes to achieving noticeable financial savings and supporting resource sustainability.
Economic feasibility of using mazut
Current data indicates a large price gap between natural gas and mazut, as the price of mazut is about $16.1 per million thermal unit, compared to about $30 for the same unit of natural gas. This large cost difference pushes towards re-evaluating operational strategies to reduce financial burdens on the state. Although the efficiency of mazut is relatively lower than natural gas, the economic return makes it a strategic alternative option, especially with the decline in natural gas consumption by approximately 14 percent during the winter season, allowing greater flexibility in resource management.
Enhancing local production and reducing imports
The proposed visions include the necessity of enhancing local production of mazut by operating refineries, especially in Suez, at their maximum capacity to produce quantities reaching about 2.5 million tons annually. This step contributes to meeting a large part of local needs, in addition to directing investments towards importing crude oil and refining it locally instead of importing ready-made petroleum products at high prices, which serves the national energy security strategy and reduces reliance on global market fluctuations.
