Egypt Lays Out The Road To Gas Balance

Egypt says that it will raise its gas output by 50% over the two years to mid-2018. With Eni’s giant Zohr on target, and BP this week reporting that its West Nile Delta will likely start up ahead of mid-2017 schedule, the plan is on track. Recent bumper LNG buying will tide Egypt over (see p5).

Cairo plans to invest some $9.9bn to boost Egyptian gas production to 5.85bn cfd by the end of the country’s 2017-18 financial year in June 2018. As Oil Minister Tarek El Molla notes, this would mark a 50% hike from the 9-year low of 3.89mn cfd plumbed in May 2016. Output will “double” from mid-2016 levels by mid-2020, Mr Molla adds, implying output of 7.8bn cfd by the latter date.

And for once, Egypt’s gas output plans, or at least the first stage of them, look eminently achievable. Production had already hit 4.5bn cfd as of end-2016, with the ramp up of output at Eni’s Nooros field to 900mn cfd in its first year of production providing the key boost. (CONTINUED - 728 WORDS)

DATA INSIDE THIS ARTICLE

chart Egypt Targets 50% Gas Output Gain Over Two Years To Mid-2018 (Bn Cfd)
chart Egypt Gas Output (Bn Cfd)