Egypt is planning to export gas to Europe by 2025 thanks to two major energy discoveries, Zohr and North Alexandria, said the country’s oil minister Tarek El-Molla, speaking at the Apicorp Energy Forum in Bahrain Thursday.
However, the government will have to import gas to meet domestic demand for electricity and industry until 2022.
Egypt is planning to become a regional hub for east Mediterranean gas. It will invest in pipelines and infrastructure for its own and neighbouring countries’ production.
Cairo expects first gas from North Alexandria in mid-2017 and from Zohr in late 2017. This will ramp up to full production in 2019.
“Together with our partners, we are looking at a 30-year plateau,” said El-Molla. “This is a big discovery and development will last for a long time. We should not look at the short term, as the market will balance.”
El-Molla also emphasised the importance of continuing to invest in oil and gas developments despite lower crude prices.
“For the neighbouring blocks within Egyptian waters, which have already been awarded to other partners, they are motivated to focus on exploring and developing,” he said. “Whatever quantities produced, there is a market, firstly for internal domestic consumption.”
Source: Middle East Business Intelligence (MEED)
