The government’s regular monthly payment of accumulated arrears for foreign partners would encourage them to return to produce at the previous high output levels, boosting Egypt’s natural gas supply by 2027, said Prime Minister Moustafa Madbouly, during the cabinet’s weekly meeting on Wednesday.
The increased production capacity of the Zohr field is another factor Madbouly cited for the expected recovery in production level.
Egypt’s production volume had been low, dropping from more than 6.6 billion cubic feet per day (bcf/d) to 4.1 bcf/d over the last two to three years, said the Prime Minister.
“Citizens should understand that production fields are not permanent, as all fields have a certain volume. What we can do is to ensure the stability and increase the production rates. This requires pumping in new investments and making discoveries. Based on that, the volume of domestic production will either remain stable or increase,” he added.
Egypt has been receiving requests from international and local companies that would like to establish new factories in different economic sectors that require gas, according to the PM, who added that “The government is taking all of this into consideration and has a complete vision for Egypt’s gas production capacity for the next five years,” Madbouly said.
“In a previous meeting, I mentioned that we will use the regasification vessels temporarily. This is because the need for these types of vessels will begin to decline as our local production increases.”He said
Moreover, the Prime Minister noted that Egypt is a regional energy hub with a huge infrastructure, including the liquefaction plants in Idku and Damietta.
