Low Prices Hit Egyptian LNG: Press

Egypt has cut natural gas production by 1bn ft³/d and reduced natural gas prices to various industrial sectors in the country, according to reports in the Egyptian media. Gas production has gone from 7bn ft³/d to 6bn ft³/d, according Alboorsa. Gas demand for electricity generation fell from 4.5bn ft³/d during the summer to 3.7bn ft³/d now.

Egypt is also having trouble in finding markets for its LNG exports and had to cancel up to three 3 cargos owing to the low prices on the European spot markets. 

Earlier this year Egypt achieved gas self-sufficiency, according to energy minister Tarek el Molla. Since then gas production has risen as new fields came online and the giant Zohr field beat its scheduled production ramp-up.

So at the start of this month the gas price for the cement industry was lowered by a quarter to $6mn Btu; and for the metals and ceramics industry it went from $7.00/mn Btu to $5.50/mn Bbtu.

However, industry is demanding even lower gas prices, to $3.50/mn Btu, in order to compete in foreign markets. Aluminum producers in Egypt have already said that prices of finished products will be lowered beginning next month.