SCZONE showcases investment opportunities to eight Japanese companies    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    Egypt's PM meets Tokyo governor, witnesses signing of education agreements    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Egypt's Sisi, France's Macron discuss Gaza ceasefire efforts in phone call    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt prepares unified stance ahead of COP30 in Brazil    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    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    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 gas sector experiencing renaissance: report
Rising gas production to boost GDP by more than 2.5% over coming years
Published in Daily News Egypt on 06 - 02 - 2018

A recent report issued by Capital Economics said that Egypt's gas sector is expected to play a key role in boosting the economy in the few coming years.
Last week, Egypt's President Abdel Fattah Al-Sisi inaugurated the Zohr gas field which, combined with the onset of production from a number of other fields, will provide a sizeable boost to GDP growth over the next few years and also help to rein in the country's large twin budget and current account deficits.
That said, investment into the gas sector will need to be raised further if these gains are to be sustained beyond the next five years.
The inauguration of the Zohr gas field followed the announcement late last year by Italian energy company Eni that it had commenced initial production from the field.
The start of production from Zohr, combined with that from the Atoll field at around the same time and from the West Nile Delta development earlier in 2017, marks another milestone in the turnaround of Egypt's energy sector over the past couple of years.
Historically, Egypt has been an exporter of gas, but the sector had struggled in recent years as a
confluence of factors deterred international oil companies from investing in Egypt.
In turn, faltering production meant the country became a net gas importer in 2015.
At the same time, insufficient gas supplies resulted in electricity benefits from the start of production from Zohr, preventing blackouts that hampered economic activity.
The start of production at Zohr and the West Nile Delta will bring substantial economic benefits to
Egypt.
This is likely to play out through a number of channels. First, a rise in natural gas production will
directly boost GDP growth.
Initially, output from Zohr is likely to be around 0.35bn cubic feet per day, the report noted.
"By our estimates, that will translate into a 2.8% increase in the level of Egypt's real GDP over the next three years. Most of the boost is likely to come this year, particularly if the government manages to persuade Eni to accelerate production from Zohr, followed by a smaller increase in 2019-20," the report concluded.
Egypt will be a net gas exporter this year for the first time since 2014.
Petroleum Minister Tarek El-Molla stated the country has already started to scale back its gas imports and hopes to bring them to a halt by the end of this year.


Clic here to read the story from its source.