Egypt’s natural gas production rises to 3.4M tons in December 2017

CAIRO – 6 March 2018: Egypt’s production of natural gas increased in December 2017 to reach 3.4 million tons, up from 2.7 million tons in December 2016, an official source in the petroleum sector said Tuesday.

The increased production came on the back of starting production from four main fields, including the West Delta's Taurus and Libra fields as well as Atoll and Zohr gas fields.

This is in addition to increased production from Nawras gas field.

Meanwhile, the source said that consumption of gas has also increased in December to stand at 3.6 million tons, compared to 3.2 million tons in December 2016.

The source added that production of crude oil and condensates increased in December to 2.8 million tons, up from 2.7 tons a year earlier.

Consumption of gasoline, diesel and fuel oil slumped in December to stand at 2.9 million tons, compared to 3.1 million tons in December 2016, according to the source.

In February, Deputy Chairman of the Egyptian Natural Gas Holding Company (EGAS) for production and fields’ development Mohamed Abdel Azim said that Egypt’s natural gas production will reach some six billion cubic feet a day by the end of fiscal year 2017/18.

Egypt’s gas production currently stands at 5.5 billion cubic feet a day, after adding some 1.6 million cubic feet as a result of starting production from the aforementioned projects.

The country's total natural gas consumption is about 6 billion cubic feet per day, of which roughly 65 percent goes to the electricity sector.

The new discoveries are expected to turn Egypt into a net exporter of natural gas as the country is expected to halt gas imports by mid 2018.

Egypt plans to stop importing liquefied natural gas (LNG) by the end of the 2017/18 fiscal year ending in June as it accelerates production at a number of newly-discovered gas fields, Petroleum Minister Tarek el-Molla said in January.

Egypt has been intensifying natural gas exploration activities recently. Last month, the Ministry of Petroleum signed an agreement with oilfield services company Schlumberger to conduct a seismic survey in the Gulf of Suez.

EGAS announced in February that it will issue a tender for onshore and offshore natural gas exploration in nine blocks.

The tender, which includes six offshore and three onshore blocks, will be issued before June 2018.

EGAS has put a plan to issue tenders for natural gas exploration annually, especially in the Mediterranean, which the company considers as a promising area for natural gas.