Egypt's Gas Production to Fall to 4.85 bcf/d by 2017-18

Egypt’s natural gas production is expected to fall to 4.85 billion cubic feet per day (bcf/d) in fiscal 2017-18 from 5.03 bcf/day in 2014-15, Cairo based newspaper Al-Borsa reported Sunday citing Petroleum Ministry statement.

Meanwhile the ministry expects country’s natural gas demand is expected to rise by 24 percent from 5.98 bcf/day to 7.42 bcf/day over the same period.

Gas imports are expected to rise from 0.5 bcf/day to 1.0 bcf/day starting 2016-17, the newspaper added.

The Egyptian economy is facing severe gas shortage as local demand has ballooned in recent years amid declining domestic production.

The government has been in the process of procuring gas from various sources.

In December, Algeria and Egypt signed a previously announced natural gas deal. As per the deal Algeria will supply 850,000 cubic meters of LNG in six shipments to Egypt during 2015. The two countries will begin fresh talks shortly regarding supply of Algerian gas during 2016-2020, the ministry said adding that negotiations will start in Cairo and will be completed by February in Algiers.

Cairo is also expected to sign a deal to import LNG from Gazprom. Egypt is likely to buy 35 shipments of LNG over the next five years from the Russian company. Shell is another company likely to begin supplying gas to Egypt this year.

Earlier this month reports Platts quoted Shell's Middle East and North Africa region vice president, Mounir Bouaziz, as saying that the company will supply Egypt with 1 million mt/year of LNG, starting this year.