Egypt to increase gas output

Ecuador

DAMIETTA, May 23, 2016 – Egyptian Minister of Petroleum and Mineral Resources Tarek El Molla said on Sunday the country will raise its natural gas production to as high as 170 mcm (6 bcf) per day by year-end 2019, up from present levels of around 110 mcm (3.88 bcf).

The increase in natural gas output should help to reduce Egypt’s oil and gas import bill, currently estimated at some USD 795 million per month, of which between USD 250 million and USD 300 million is spent on gas. According to El Molla, 12 gasfield development projects are underway representing a combined value of USD 33 billion.

In order to meet its energy needs, the minister also said Egypt was mulling to rent a third floating and storage regasification unit, possibly in the second quarter of 2017. “With the arrival of the third regasification unit, Egypt’s total imports of natural gas will reach [56.6 mcm] 2 bcf per day,” El Molla said at an event in Damietta. At present, the country imports between 26.3 mcm (929 mcf) and 31.2 mcm (1.1 bcf) of LNG per day.

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