Egypt’s Gas Output: Has It Turned A Corner?

23 Sep 2016 Issue: 59 / 38

Egyptian gas output is currently running at 4.35bn cfd, up by 460mn cfd from May’s 11-year low following several recent start-ups. But with the country’s two key expansion projects, BP’s West Nile Delta and Eni’s Zohr, not set to start for at least a year, output may fall again in the meantime.

Egyptian gas output edged up to 3.98bn cfd in June and July from May’s 11-year low of 3.89bn. It rose further to 4.17bn cfd in August, and local financial daily Al Borsa on 21 September quoted a source at state firm EGAS as giving a figure of 4.35bn cfd for “current output;” if maintained this would be the highest monthly figure since April 2015.

Italian firm Eni, the UK’s BP and Anglo-Dutch major Shell combined to add 330mn cfd of new gas output in August, Egypt’s oil ministry said in an 18 September statement (that this only translates into net gains of 190mn cfd is indicative of the underlying decline). The additions, which equate to 8% of current output, are good news for Cairo as it fights to overcome a gas deficit before its two key expansion projects, the BP-led 5 tcf West Nile Delta and Eni’s 25 tcf Zohr come online in late 2017. (CONTINUED - 903 WORDS)