EGAS signed 9 agreements worth $ 981M to explore natural gas

CAIRO – 14 March 2021: Nine new agreements have been signed to search for natural gas, with a total investment of $ 981 million to drill 18 exploration wells, Head of the Egyptian Natural Gas Holding Company (EGAS), Magdy Galal, said Sunday.

Galal added in a statement, Sunday, that two successful exploration wells have been drilled, and a three-dimensional seismic survey has been conducted in the areas of the Western Mediterranean agreements for an area of ​​18,000 km2.

He added that three projects have been implemented to develop gas fields belonging to the Pharaonic, Petrobel and  Petro Disouq companies, with a total of 3 wells, in addition to adding four new development wells to production.

This came during Tarek El Molla, Minister of Petroleum and Mineral Resources, presiding over the work of the General Assembly of the Egyptian Natural Gas Holding Company (EGAS), via video conference, to approve the planning budget for the next fiscal year 2021-2022.

In the field of research, exploration and production, it is planned to complete drilling and completing 10 wells in the Delta and the Mediterranean, preparing for drilling nine more wells, conducting a seismic survey, and signing three development contracts with a total investment of about $ 377.7 million.

 It is planned to achieve natural gas production rates of 7.2 billion cubic feet. Gas per day and 100 thousand barrels of condensate, the statement added.

He stated that the liquefaction and gas export plant in Damietta has been restarted after an 8-year hiatus and 3 shipments have been exported so far, after the completion and termination of settlement agreements for arbitration cases with Union Fenosa and Segas.

He pointed out that it is intended to supply all sectors of domestic consumption with 100 percent of natural gas and to continue fulfilling contractual obligations, as it is planned that the electricity sector consumption will represent about 57.6 percent of the total domestic consumption and the industrial sector is about 23.5 percent, and the rest is distributed to the household consumption and car supply sector, and the petroleum industries and derivatives sector.