Egypt restarts large-scale LNG projects due to rising demand

China Petrochemical News Network reported on April 27, according to the oil price network, in the late 1990s and early this century, Egypt began to develop the LNG industry in cooperation with international partners.

In the past decade, Egypt has discovered several major offshore natural gas resources, the largest of which is the ultra-large Zohr gas field, which has improved Egypt’s energy prospects.

The restart of Damietta is another major achievement for Egypt to become an energy center and exporter.

However, the new crown epidemic has dealt a heavy blow to the Egyptian gas industry and severely affected exports.

Damietta's restart is the effect of high prices and strong demand.

Whether Egypt can succeed in becoming an energy center and a major exporter depends on domestic factors and international markets.

In addition, prices in the international market may affect the profitability of Egyptian exports, because some of the feedstock gas comes from expensive deep-water oil fields, and the cost is between US$5-7/Btu.

Cairo is working to increase its exploration success rate in similar basins and geological conditions to increase its export potential.

Qiu Yin compiled from the oil price network

The original text is as follows:

Egypt Restarts Major LNG Project On Rising Demand

in the late 90s of the previous century and early years of this century, Egypt in collaboration with international partners started the development of its LNG sector.

The discovery of several major offshore gas resources during the past decade, of which the supergiant Zohr gas field is the biggest, improved Egypt's energy outlook.

The restart of the Damietta is another major achievement for Egypt which intends to become an energy hub and exporter.

However, the Covid-19 pandemic dealt a heavy blow to Egypt's gas industry which strongly affected exports.

The restarting of Damietta is the effect of high prices and strong demand.

Whether Egypt succeeds in becoming an energy hub and major exporter, depends on domestic factors and international markets.

Also, prices on the international market could impact the profitability of Egyptian exports as some of the feed gas comes from expensive deepwater fields which cost in the range of $5-7 MBtu.

　　Cairo is aiming to increase its exploration successes in similar basins and geologies to improve its export potential.