This is an interesting development for the North African region;
Major international oil companies say they plan to step up their investments in Egypt, expecting to find more oil and gas now that ENI’s giant Zohr gas discovery has put its Mediterranean waters on the map.
A good few years ago I worked briefly on proposals for an LNG facility in Egypt which is now running (www.egyptianlng.com) but that was some while ago. Since then there hasn’t been much mention of Egypt on the international oil and gas market until now – as this article outlines.
Once a net gas exporter, Egypt has turned into a major importer in recent years as growing domestic demand outstripped production, but the discovery of the 850 billion-cubic metre Zohr field in 2015 is expected to change that.
The development goes further than reducing Egypt’s cost of importing gas and provides the potential for the Country to become a major player in the international gas markets of the future – refer to my last blog post as to why this is important for Europe – which is a good thing for North Africa as a whole.