Egypt sees gas self-sufficiency by 2018

Tamar

Egyptian Minister of Petroleum Tarek el-Molla's statement is a major blow to potential Israeli gas exports to Egypt.

Egyptian Minister of Petroleum Tarek el-Molla expects Egypt to supply all of its own natural gas needs within two years, the Zawya news website, owned by Reuters news agency, has reported. This further reduces the chances of exporting gas from Israel's Tamar reservoir to Egypt, following two approvals granted by Egypt for liquefying Egyptian gas for export at the country's liquefaction facilities. As of now, Egypt is producing 47 BCM of natural gas a year.

According to the report, in addition to its own production, Egypt is currently spending $250 million a month on imports of liquefied gas. According to el-Molla, these imports are enough to supply all the Egyptian economy's needs, with an emphasis on industry and electricity production. El-Molla's optimism about Egypt's own independent supply is based, among other things, on the beginning of gas production from the huge Zohr reservoir, with production slated to reach an annual 11 BCM by the end of this year. A further supply will be obtained from increased production at the existing fields, among other things 5.2 BCM in increased production from the northern Alexandria field, starting in mid-2017. The Noras gas field, which currently produces 9 BCM annually, is also expected to increase production. In addition, Egypt is taking measures to step up exploration at potential gas fields. Several international companies were recently awarded exploration licenses, and oil and gas exploration agreements totaling $220 million were signed with BP and French company Total.

Published by Globes [online], Israel Business News - www.globes-online.com - on January 16, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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