Egypt reshuffles labour directorates to to boost efficiency – minister    Egypt presses Israel to accept Gaza truce proposal in call with US envoy    Egypt launches hospital safety assessor training with WHO support    Revival of Continental Hotel part of Khedivial Cairo development, maximising heritage assets: El-Shimy    CBE reports surge in financial inclusion, reaching 76.3% by June 2025    International force deployment in Gaza possible if requested by Palestinians: Egypt's FM    Petroleum Minister discusses development of Iqat gold mine to place it on global map    Al-Sisi orders acceleration of health insurance rollout, supports private investment    Egypt advances plans to upgrade historic Cairo with Azbakeya, Ataba projects    Egypt's FM vows full support for UNRWA amid Gaza crisis, Israeli pressure    China's Fujian province to host investment seminar for 6 BRI nations    Egyptian pound ends week lower against US dollar – CBE    Geopark in Fayoum tops agenda in Egypt-UNESCO environmental talks    Egypt expresses condolences to Sudan after deadly Darfur landslides    Egypt hosts G20 meeting for 1st time outside member states    Lebanese Prime Minister visits Egypt's Grand Egyptian Museum    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Egypt seeks Indian expertise to boost pharmaceutical industry    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt uses dual aid routes to Gaza as trucks, airdrops continue: Madbouly    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt's giant Zohr gas field aims to start output in 2017: Minister
Published in Ahram Online on 03 - 11 - 2015

Egypt aims to start natural gas production from its massive offshore Zohr field in 2017, a year ahead of schedule, oil minister Tarek El Molla said.
The Zohr gas field, discovered by Italy's Eni, is the biggest in the Mediterranean, and with an estimated 30 trillion cubic feet of gas it is expected to plug Egypt's acute energy shortages and save it billions of dollars in precious hard currency that would otherwise be spent on imports.
"We're looking to expedite the agreement with the partner and speed up production. Hopefully we will begin production from the discovery in 2017," El Molla said in an interview at the Reuters Middle East Investment Summit.
Eni has said it expects to invest between $6 billion and $10 billion to develop the Zohr field. Previously, officials had said production was expected to start in 2018.
Once an energy exporter, Egypt has turned into a net importer because of declining oil and gas production and increasing consumption. It is trying to speed up production at recent discoveries to fill its energy gap as soon as possible.
In October British oil major BP said it would begin gas production at its north Alexandria concession in early 2017 rather than mid-2017. That should add up to 1.2 billion cubic feet of gas per day by late 2019.
El Molla, appointed oil minister in September, succeeded Sherif Ismail who launched a drive to lure back foreign energy investors driven away by low prices and debt arrears.
In July the oil ministry raised the price paid for gas from Eni to a maximum $5.88 for every million British thermal units and a minimum of $4, based on amounts produced, from $2.65. It then cut a similar deal with British Gas.
Ismail's success in reinvigorating the sector, which is vital for economic growth at a time when energy shortages have crippled industrial production, helped propel him to the post of prime minister in September.
The total value of Egypt's natural gas projects, excluding Zohr, is now $13.8 billion, and El Molla said the Zohr discovery had made additional investment much more likely.
"The Zohr discovery whet the appetite of other foreign companies working in Egypt to speed up seismic discovery operations and exploratory wells."
Current projects underway will add 2.4 billion cubic feet to the country's daily gas production by 2019, said El Molla. Current production is roughly 4.5 billion cubic feet.
On the back of this, the stock of foreign oil and gas investment in Egypt is expected to increase to $8.5 billion during the current fiscal year ending next June, from $7.5 billion last year, said El Molla.
LNG BOOM
Egypt's drive to expedite foreign investment in gas production comes just as the country has become a top growth market for imported liquefied natural gas (LNG).
Egypt entered the LNG market with a burst of imports this year after leasing a floating storage and regasification unit (FSRU) from Norway's Höegh LNG for five years in April. FSRUs allow Egypt to import LNG and convert it to natural gas to feed into its power grid.
A second FSRU, provided by Norwegian group BW Gas , arrived in September and is expected to begin operating this week, while a third FSRU is likely to come by the end of 2016 or the first quarter of 2017, said El Molla.
Egypt expects to stop importing LNG by 2020 as projects such as the Zohr and BP fields come online.
In the meantime, the government last Wednesday approved the creation of a gas regulatory agency that will permit private companies to import and sell their own gas. Several private sector companies have applied to import, said El Molla.
http://english.ahram.org.eg/News/162556.aspx


Clic here to read the story from its source.