State-owned Egyptian Natural Gas Holding Company (EGAS) has announced an investment of US$4bn to increase gas production in Egypt
Khaled Abdel Badie, chairman of EGAS, said that the company has finished four natural gas projects among the 10 projects in the country. The remaining gas projects will be developed during the year 2014-2015.
Egypt reportedly holds two trillion cu/m of natural gas reserves. Despite new natural gas discoveries, Egypt is currently facing a decline in the gas production rates, which has declined by an annual average of three per cent. The current output stands at 138mn cu/m, compared to 158mn cu/m produced in 2013.
Egypt has been diverting natural gas supply away from exports to the domestic market to meet demand. As a result, Egypt’s total gas exports have declined by an annual average of 30 per cent from 2010 to 2013, added EGAS.
Badie added, “Egypt’s LNG exports have also continued to drop in 2014. The country has plans to start importing LNG after September 2014 when it receives a Floating Storage and Regasification Unit (FSRU) from Norway-based Hoegh LNG.”
