Egypt- Gas exports fell to 100m scf/day due to low global prices
Egypt has reduced the amount of natural gas exported through the Idku liquefaction plant of the Dutch Shell Company to about 100m cubic feet per day (scf/day) compared to 500m scf/day in August.
A source in the oil sector told Daily News Egypt that the quantities of gas exported through Idku is reduced because of the decline in prices in world markets, as a result of oversupply against low consumption rates in importing countries of liquefied gas.
He explained that the quantities of gas destined for export through the Idku liquefaction plant is determined according to the shipments contracted to supply during the current period periodically, with regular pumping through the national gas network.
The source added that the quantities of exporting natural gas through the Idku liquefaction plant increased, giving Egypt the chance to return to world markets strong after achieving local self-sufficiency and surplus production.
Gas prices have begun to decline after years of the United States increasing its shale gas production dramatically. At the time, oil prices had fallen compared to gas prices, which has helped reduce natural gas dependence somewhat.
Markets are experiencing seasonal fluctuations, with peak demand in winter, lower levels in summer, while consumption falls sharply in spring and autumn. In addition, the conflict between Russia and the United States has caused both countries to increase their gas exports.
The source said that the Ministry of Petroleum’s plan to link Zohr, North Alexandria, and Burullus fields is going according to schedule, which will contribute to an increase in local production, cover consumption, and operate liquefaction plants, along with gas coming from Cyprus and Israel.
The contractual share of the Idku Liquefaction plant is estimated at 1.13 bn scf/day. The ownership structure of the plant is divided into 12% for the General Petroleum Corporation, 12% for the Egyptian Natural Gas Holding Company, in addition to 35.5% for Shell, 35.5% for Malaysian oil and gas company Petronas, and 5% for Gaz de France.
Egypt’s production of natural gas rose to about 7bn scf/day, compared with 6.2 bn scf/day last year, after linking gas production from the second phase of the West Nile Delta project and a number of other wells.