The Egyptian Cabinet’s Media Centre recently issued a report highlighting Egypt’s efforts to be among the largest suppliers of liquefied natural gas LNG on world markets, after having achieved self sufficiency on its domestic market.
According to British Petroleum (BP) 2020 figures, Egypt ranked 14th globally, 5th regionally, and 2nd in Africa, with an annual gas production of 58.5 billion cubic metres.
The Cabinet report said that despite the COVID-19 crisis, Egypt managed to maintain its levels of production and exports of natural gas. In 2020/2021 production stood at 66.2 billion cubic metres, with a surplus at 3.3 billion cubic metres, up from 63.2 billion cubic metres and a surplus of 3.5 billion cubic metres in 2019/2020.
With a surplus of 4.3 billion cubic metres, Egypt was able in 2018 to reach self-sufficiency in natural gas, and to restore its position as an exporter, the report said, pointing out that the years 2014 to 2016 had seen Egypt with a deficit in natural gas that had to be balanced by imports. In 2015/2016, the deficit reached 7.1 billion cubic metres. The deficit retracted once the Zohr field went into production.
The Cabinet’s report reviewed Egypt’s efforts to place itself on the global map of natural gas suppliers; Egypt signed 99 marine petroleum agreements with international companies to explore for oil and gas, with investments of a minimum USD17 billion during the period from 2014 to 2021. No agreements had been made from 2010 to 2013 [the period of the Arab Spring unrest].
Egypt’s efforts to expand its exploration for natural gas, the report said, involved international endeavours to demarcate it maritime borders. In 2014, 2016 and 2020, Egypt signed border demarcation agreements with Cyprus, Saudi Arabia, and Greece respectively.
In 2018, during the Crete Summit, Egypt took the initiative to establish the Eastern Mediterranean Gas Forum. The Forum’s charter was signed in 2020, and put into action in March 2021, becoming an intergovernmental organisation, with seven countries as founders. These are Egypt, Greece, Cyprus, Palestine, Israel, Jordan and Italy; they later joined by France. The USA, the EU and the World Bank joined the organisation as observers. The report explained that the organisation works as an umbrella for cooperation and regional integration to exploit the gas resources in the Eastern Mediterranean region, in order to maximise the benefit for the region.
According to the report, during the period from 2014 to 2021, Egypt intensified exploration and excavation operations of natural gas fields, executing 30 projects during that period, with a total investment of EGP514 billion.
Egypt’s production capacity of natural gas was boosted owing to the new fields, the report said. Zohr field has a production capacity of 28 billion cubic metres per year, Rifein field 8.7 billion, and the Noras field 4.6 billion.
Damietta gas liquefaction plant resumed operation after eight years interruption, contributing to the boost of production. The Edku and Damietta plants now provide 12 million tons of liquefied gas annually. Once the Damietta plant restored operation in March 2021, liquefied gas exports rose by 123.3 per cent.
The report pointed out that new markets for Egyptian gas imports include Turkey, Croatia, Pakistan and Bangladesh.
Watani International
21 February 2022