Egypt will stick to current levels of gas exports

Reuters Arabic, Thursday 2 Dec 2010

Low international prices and growing domestic demand means that Egyptian gas exports will remain capped at their current levels.

egypt gas
Export freeze to cover growing local demand

Egypt's gas exports will remain unchanged in 2011 from their levels in 2009. "Declining world price levels discourage us from signing new deals," said Minister of Petroleum Sameh Fahmy on Wednesday.

Fahmy told reporters during a visit to Doha, Qatar, that Egypt expects to export 21 billion cubic metres of gas — the same amount it sold abroad last year.

"We will stick to our position," Fahmy said. "This is not a good time to export gas," he added.

Growing domestic demand on gas forced the Egyptian government in 2008 to halt any new contracts until the end of 2010.

The International Energy Agency declared last month that abundance in the supply of gas worldwide keeps prices down — a situation expected to last at least 10 more years, despite growing demand.

Fahmy said that the market does not respond well to the gas industry because prices are "very cheap" and no investors are negotiating new contracts.

Egypt's production of gas this year stands at about 65 billion cubic metres, which goes mainly as exports to the United States, Europe and the Middle East.

Egypt has proven gas reserves amounting to 77.3 trillion cubic feet, according to British Petroleum, mostly in the deep waters off the coast on the Mediterranean Sea, ranking Egypt 15th in the world in terms of gas reserve volume. 

Search Keywords:
Short link: