Experts raise questions regarding Egypt natural gas strategy

Egypt and Turkey have recently agreed to jointly establish the “TIR GAZ” company. egypt natural gasThis company will be responsible for exporting Egyptian gas to Europe via a pipeline which will go from Egypt to Jordan, and then through Syria to Turkey. This recent deal raises again the discussion concerning Egypt’s natural gas export destinations.

Following significant discoveries of oil reserves in the early 1990s, the Egyptian Government declared in 1999 that the nation’s reserves (estimated at some 65 trillion cubic feet today) surpass the local needs, and called on foreign companies operating in its territory to locate export destinations.

Ever since natural gas production in Egypt grew by more than 75 percent in the last five years. In 2004, natural gas became the nation’s No. 1 source of energy. Currently, approximately 84 percent of Egypt’s electricity needs are supplied by power stations that run on natural gas.

Viewing Liquefying Natural Gas (LNG) projects as the most efficient means of attracting foreign investment, the Egyptian government has encouraged foreign companies operating in the country to expedite their completion of LNG export projects. Indeed many leading foreign companies understood the potential of Egypt’s natural gas industry and today there are some 50 foreign companies operating in this sector.

Al Bawaba