Egypt's Gas Output in 2015-2016 to Witness No Growth

Natural gas production in Egypt in 2015-2016 financial year is not expected to witness an increase, according to an EGAS official.

The official stated that maximum production will be approximately 5 billion cubic feet a day, compared with 5.03 bcf in 2014-2015, Daily News Egypt reported Sunday.

The primary reason for static production, according to the official, is reluctance on the part of foreign companies to link several new wells to production due to low domestic prices.

Consumption of gas for power generation in 2015-2016 will be around 3.48 bcf of gas daily, compared with 3.23 bcf during 2014-2015, the newspaper quoted the official as saying. Gas consumption in other sectors will rise to 3.03 bcf daily compared to about 2.74 bcf during 2014-2015.

Cairo has been signing deals with various countries to source gas to bridge the domestic demand gap. Egypt has agreed to import LNG from Algeria. LNG purchase deal with Gazprom is expected to be signed soon.