Egypt plans to import 155 to 160 cargoes of liquefied natural gas (LNG) by 2025 to fill the gap between market needs and local production, according to a government official who spoke to Al-Sharq.
The official, who requested anonymity, estimated that the cost of importing LNG cargoes over the next year would be around $8 billion, based on an average price of $48 billion. at $50 million per cargo. This is what emerges from a report on the country's imported gas needs for 2025, submitted to the presidency of the Council of Ministers.
As Egypt's natural gas production has declined significantly, the country returned to importing liquefied gas starting this year, after having halted it since 2018, due to new gas discoveries, particularly in the Zohr field.
Egypt and natural gas production
This country on the African continent has always been a relevant player in the global natural gas market. By 2023, according to Statista figures, Egypt had produced 57.1 billion cubic meters of natural gas. This is a decrease of 11% compared to 2022.
This country is also the largest producer of natural gas in the world and represents 2% of global production. Other important producers are: The United States, Russia and Iran.
Egypt has 33 natural gas production fields, 23 of which are located on land and the rest offshore. The Mediterranean has 12 production fields, making it the largest offshore field in the country.
Additionally, the government is working to increase the amount of natural gas available to meet its needs. This is how Egypt agreed, between last April and today, for 50 cargoes of liquefied gas.
Cairo also announced plans to drill 46 oil and gas exploration wells during the fiscal year, with investments of $748.5 million.
Cumulative quotas
In addition to importing, Egypt communicates with foreign companies working on gas extraction in the country to encourage them to increase their production. Thus, it has already agreed with the Italian Eni and the American Apache to increase production and has also undertaken to pay arrears in order to encourage them to complete the development and exploration programs for the deposits.
The Egyptian government has already paid its arrears. In November this year, he paid $1 billion of the $2 billion owed to foreign oil companies.
The government is also seeking to modify development and research plans with foreign partners, starting to pay partners' arrears according to an agreed schedule. This includes incentive methods and periodic payment of value from partners so that debts do not accumulate again.
