(Ecofin Agency) – Egypt, which has become a net importer of natural gas in recent months, is now counting on an influx of foreign investment to revive its natural gas production, which is in decline due to the maturity of Zohr, its largest gas deposit.
Karim Badawi (photo), Egypt’s Minister of Petroleum and Mineral Resources announced, Friday October 4, on the sidelines of the 19th Francophonie Summit, that the French oil major TotalEnergies should commit more funds to produce natural gas.
This planned investment, the figure of which has not been published, could involve the acceleration of development work on the Bashrush deposit in the North El Hammad concession, with an estimated production capacity of 100 million cubic feet per day.
In addition to its participation in the North El Hammad concession, TotalEnergies is also involved in Block 3, an exploration area located off the coast of the Mediterranean of which it is the operator. This is without taking into account its interests in the Idku gas liquefaction unit and in the Egyptian oil downstream.
The announcement of this potential future gas investment by TotalEnergies in Egypt comes after two years ago, the company reduced, for $200 million, 50% of its interests in Egyptian downstream oil for the benefit of UAE oil company ADNOC.
Faced with growing energy demand and declining natural gas production, Egypt is actively seeking to attract foreign investment to revitalize its energy sector. In this context, TotalEnergies, with its development projects, can play a crucial role in this strategy.
If materialized, these investments have the potential to increase Egypt’s gas production, boosting growth in the country’s economy forecast to be around 4.2% in 2024-2025 according to the World Bank.
Abdel-Latif Boureima
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