Egypt: Natural Gas Output Hits 6-Year Low

SEATTLE (Oil Monster): Egypt’s natural gas production plummeted in May to its lowest level since February 2018, data from the Joint Organisations Data Initiative (JODI) cited by Bloomberg has revealed. This decline may force the North African country to shift from being a natural gas exporter to increasing its reliance on Liquefied Natural Gas (LNG) imports.

The data also showed a significant drop in Egypt’s oil production, falling from a peak of 6,133 million m3 in March 2021 to 4,288m in May this year, marking a 30 per cent decrease.

JODI, coordinated by the International Energy Forum (IEF), aims to enhance market transparency and stability, improve energy security, and promote sustainable energy transitions.

Last month, the reduction in gas production led to major fertiliser producers halting operations as gas supplies were redirected to power plants to mitigate a power outage crisis. In a televised press conference last week, Prime Minister Mostafa Madbouly stated that daily electricity consumption surged to over 37 gigawatts, a 12 per cent increase from the previous year, resulting in a 4-gigawatt deficit.

To address this, Madbouly announced that the government is accelerating renewable energy projects, aiming to source 58 per cent of electricity needs from renewables, up from the current 20 per cent.

Moreover, the government declared an end to power outages as of yesterday after the EU approved a $57 billion financing package. Last Tuesday, Egypt confirmed it had received five out of 21 LNG shipments contracted in June to fuel power plants and alleviate the natural gas crisis.

Despite the discovery of new Mediterranean gas fields, the early summer heat waves have exacerbated the situation, necessitating the import of LNG cargoes to manage domestic power demands and prevent rolling blackouts.

Courtesy:  www.middleeastmonitor.com