New gas projects to double Egypt’s production in 2020: Petroleum Minister
New refining projects over the coming 4 years will bridge the gap of oil, investments amount to $8.3bn
Minister of PetroleumTarek El Molla said that the new natural gas projects in Egypt will increase production by 50% in 2018 and 100% in 2020.
Egypt’s natural gas production has risen to about 5.1 billion cubic feet per day in 2017 from 4.4 billion cubic feet in 2016, as BP’s North Alexandria projects came online.
The Italian Eni discovered the Zohr field back in 2015. Zohr is the biggest gas field in the Mediterranean Sea, and its reserves are estimated at about 850 billion cubic metres.
The Italian company completed the approval procedures for its development in February and is scheduled to start production of gas by the end of this year.
This came during a meeting with Egypt’s newly appointed ambassadors to work abroad, in the presence of Ayman Kamel, First Undersecretary of the Ministry of Foreign Affairs for Financial and Administrative Affairs and the leaders of the petroleum sector to review the new vision of the sector and attractive investment opportunities in the oil and gas sector.
The minister reviewed the new refining projects that are being implemented during the next four years that will contribute to bridging the gap of petroleum products with $8.3bn of investments.
He added that by 2021, Egypt will be able to achieve optimum economic benefit from all natural resources and transform Egypt into a regional centre for oil and gas trading to become.“It will serve as a role model for other sectors of the state in development and modernisation, all while maintaining the basic values of safety, innovation, and transparency,” he stressed.
Kabil also reviewed the timetable for the implementation of the new project for the manufacture of phosphate and converting it into phosphoric acid,where it is planned to start commercial operation trials of the project by mid 2020.
The minister explained during the meeting that the strategy of the petroleum sector has been amended. The development and modernisation programme is an essential part of it to be in line with the integrated vision of energy in Egypt up to 2035. This was planned in coordination with the ministries of petroleum, electricity, and industry and trade, as well as all related agencies, under the supervision of the Supreme Council of Energy.
Egypt is in talks with liquefied gas suppliers to postpone contracted shipments this year and aims to cut purchases in 2018 amid a growing local production.