Egypt’s natural gas turns the corner
The Egyptian Oil Ministry wants to increase the gas production by 50% by 2018, continue to invest in energy and repay the Egyptian debt in the sector amounted to 3.6 billion dollars.
New finds have already given rise to talk of Egypt resuming exports soon, aided by a modernization programme to make the market more attractive.
Tarek El Molla took over his role as Egypt’s oil minister in September 2015, just after the discovery of the giant Zohr gasfield. Since then Egypt’s natural gas fortunes have seen a massive transformation. First gas from Zohr is expected to be achieved at the end of this year and Egypt is now boldly predicting that it will achieve self-sufficiency by end of 2018 and re-start exports by 2020.
The International Monetary Fund considers the reform of subsidies in the energy industry as an essential point to proceed with the promised loan of $12 billion. The Egyptian authorities have ensured their intention to remove all petrol subsidies by 2019. These measures are expected to reduce the debt/GDP ratio from 95% in 2016 to 78% in 2021.
Specifically, Italian and British oil companies Eni and British Petroleum (BP), respectively, in the coming years, will increase investments in this country. The initial investment, announced for the first five years, will amount to $10 billion. The Egyptian Ministry of Petroleum’s plan is to increase gas production by 50% by 2018. The Egyptian Ministry has also reported new investments in the energy industry and its intention to repay Egypt’s debt in the industry, amounting to $3.6 billion.
(Source: Natural Gas World)