On the sidelines of the World Economic Forum (WEF) in Davos, Egyptian Minister of Petroleum and Mineral Resources Tarek El-Molla forecasted that the Egyptian government’s target for investments in the oil and gas sectors in the next fiscal year will be around $10 billion, an increase of about $2 billion over what had been planned, due to the rise in oil and gas markets induced by the Ukraine crisis.
El-Molla pointed out that energy security is the most pressing challenge confronting the globe today.
El-Molla stated that Egyptian gas exports to Europe will not be able to compensate for Russian exports and that they may only cover a minor portion.
Given Egypt’s large gas reserves, the Egyptian minister also said that his country will be able to increase supplies in the medium and long term in light of the collaboration between eastern Mediterranean countries through the Organization of Eastern Mediterranean Gas Countries.
El-Molla projected that Egypt’s maximum gas export capacity would reach 12 million tons annually within three years.
The minister further said that his country aims to export 7 to 8 million tons of gas annually.
Egypt currently produces between 6.6 and 6.7 billion cubic feet of natural gas per day, and it owns the Idku and Damietta gas liquefaction plants.
Egypt currently produces between 6.6 and 6.7 billion cubic feet of natural gas per day, and it owns the Idku and Damietta gas liquefaction plants.
According to the minister, Egypt already exports one billion cubic feet of gas per day, with volumes likely to rise to more than 1.5 billion cubic feet per day in the next two years.
Last January, Egypt awarded 8 oil and natural gas exploration areas in the Mediterranean, the Western Desert, and the Gulf of Suez to companies (Eni, BP, Apex International, Energy Egypt, Ina Nafta, Sipetrol, and United Energy).
