Associated Petroleum Gas (APG) Flaring in Egypt: Addressing Regulatory Barriers

The EBRD, being part of the World Bank led initiative “Zero Routine Flaring by 2030”, had undertaken prior work to identify the scale of APG flaring and commercial opportunities to use APG in Egypt. In its prior work, EBRD identified regulatory barriers as being important for inhibiting investments to reduce gas flaring. Examples of regulatory barriers include the structure of Production Sharing Contracts (“PSCs”) under which operators have limited ownership over any APG produced, or well-specific limits on APG flaring that offer poor incentives to companies.

The EBRD assigned the consortium (Economic Consulting Associates (UK), Carbon Counts (UK) and Environics) for this assignment, which aimed to: i) comprehensively identify regulatory barriers inhibiting APG flaring reduction in Egypt; (ii) provide recommendations for addressing these barriers; and (iii) present these recommendations to Egyptian policy makers (for example, the Ministry of Petroleum and its state-owned subsidiaries).

Services within the scope of this assignment comprised:

– Identification and review of regulatory barriers inhibiting investments to reduce APG flaring.
– Development and assessment of options for overcoming regulatory barriers.
– Presenting and disseminating the recommendations to Egyptian policy makers and regulatory authorities.

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