Egypt

Egypt to Witness 9% Increase in Natural Gas Production

Published on : 2021-03-16

Egypt’s natural gas production is expected to reach 7.2 billion cubic feet per day in the fiscal year 2021-2022, a 9 percent increase of the predicted amount last year, according to the Petroleum Ministry.

The country’s production of natural gas reached around 6.550 billion cubic feet per day in 2019-2020.

Egypt has witnessed a boom in gas production in recent years, thanks to the field in the Mediterranean and discoveries in northern Alexandria and the Nile Delta.

Cairo hopes to become a major hub for gas trade and distribution in the region after it demarcated its maritime borders with a number of eastern Mediterranean countries in recent years.

A statement by the Petroleum Ministry announced that it aims to complete drilling ten natural gas wells in the Delta and the Mediterranean regions, as well as preparing for drilling nine others, conducting a seismic survey and signing three development contracts with a total investment of about $377.7 million.

The announcement was made during the General Assembly of the Egyptian Natural Gas Holding Company (EGAS), chaired by the Minister of Petroleum and Mineral Resources, Tarek El Molla, via video-conference, to approve the company’s budget for FY 21/22.

El Molla said that the remarkable development in the natural gas sector as an important part of the goals to transform Egypt into a regional energy hub, grants the country a competitive advantage.

It also enhances the positive outlook of Egypt’s petroleum strategy, which contributes to the influx of new international companies for the first time in the fields of research, exploration and production, he added.

He pointed to the importance of developing the Egyptian natural gas sector as a pioneering field in the Eastern Mediterranean region, through the use of the latest technologies and the application of digital transformation.

The natural gas sector is important in the new cities under construction, such as the New Administrative Capital and New Alamein, through the main gas networks that will supply the populations and industrial areas with clean energy needs and contribute to providing services.

El Molla said the recent success in settling arbitration cases with international companies confirmed Egypt’s credibility in the oil and gas sector and represented a new stage of zero-debt in this field.

He also referred to the re-operation of the Damietta LNG plant after an eight-year stop and the export of three shipments through it so far.

The plant resumed operations after the arbitration settlement with Union Fenosa Gas and the Spanish Egyptian Gas Company (SEGAS).

He pointed out that EGAS intends to completely fulfill the natural gas needs of all domestic sectors and to continue executing its contractual obligations.

According to plans, the electricity sector will represent about 57.6 percent of the total domestic consumption of natural gas, followed by the industrial sector with about 23.5 percent.

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