Egypt Gas Supplies to Lag Demand Next Fiscal

Egypt will continue to see energy shortage next fiscal as production is expected to remain below demand, reports news agency Reuters.

According to Reuters, the petroleum ministry has forecast that gas production will be 5.4 billion cubic feet (bcf) per day and consumption 5.57 bcf/day in the fiscal year that begins July 1.

In the current fiscal year by comparison, gas production is still estimated to exceed consumption at 5.31 bcf/day versus 4.95 bcf/day, a ministry source told Reuters.

Low gas prices paid to exploration companies is adding to supply woes as they are not willing to develop Egypt’s untapped as these prices barely cover the costs.

Officials said in November that the government was in talks to revise the prices it pays to buy gas from foreign companies, adds Reuters.

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