A senior EGAS official revealed to Al-Bourse newspaper that Egypt’s production of natural gas is declining at a rate of about 130 mcf per month, compared to about 100 mcf during the same period last fiscal year. This decline was the result of the natural erosion of production from gas fields.

The source added that the recovery wells that are linked on a monthly basis to increase production have contributed no more than 70 mcf, leaving a net decline of 60 mcf, which is why the government contracted to import shipments of liquefied gas until 2020.

The official explained that the declining rate of production was worsening because foreign partners had postponed connecting their projects to production since 2011, due to the accumulating debts owed them by the government.

He also said that the size of the natural gas reserves announced by some foreign partners, prior to the January 25 revolution, were exaggerated and contributed further to the current crisis.

The government resorted to the liberalization of the energy market and allowing the private sector to provide for its own fuel needs thanks to this decline in production of natural gas, reaching 4.35 bcf/d during the current fiscal year compared with 6.06 in 2009-2010. He confirmed that natural gas production would continue to decline over the coming years because the new large-scale projects were not linked to the network.

Source: Al-Bourse