Energy project : petroleum and natural gas in Egypt; linear programming analysis of the use of natural gas in Egypt

The extent to which natural gas usage can improve Egypt"s foreign exchange position by allowing greater exports of oil is herein examined. A linear programming model is used to identify shadow prices for natural gas production and transportation costs and for the world market costs of other fuels. The model thus determines the minimum foreign exchange costs needed to operate the Egyptian natural gas industry and other Egyptian sectors that have the option of using natural gas (the fertilizer, electric power generation, Helwan iron and steel, cement, and residential and commercial sectors). Only existing production facilities are considered. Results show that the most important application for natural gas is in the manufacture of cement; use in iron and steel production is indicated when electricity demand is low or coal prices are high. A 17-item bibliography (1972-1982) is appended.