Egypt’s exploration, development, and production investments are planned to reach $900 million in fiscal year (FY) 2022/23, boosting the total investments of 2021/22 and 2022/23 to $1.6 billion, Egyptian Natural Gas Holding Company (EGAS) Chairman Magdy Galal stated.

This came during the general assembly chaired by Minister of Petroleum and Mineral Resources Tarek El Molla to review the company’s budget plan, the ministry said in a statement.

In 2022/23, it is planned to drill 13 exploration wells in the Mediterranean and Delta, conclude three gas exploration agreements, implement five gas development and production projects, and 33 wells will be put into production. This is to add 450 million cubic feet (mcf) of gas and 17,200 barrels of condensate, Galal stated.

He added that it is targeted to connect 1.2 million units to the natural gas grid, convert 80,000 cars to be gas-fueled, and complete 80 new car natural gas fueling stations after completing the rapid expansion plan.

During the meeting, Galal further reviewed the most important performance indicators of the natural gas industry during the first half of FY 2021/22. The bidding for natural gas exploration was granted, which resulted in the awarding of two exploration concessions with a minimum investment of $179 million and the drilling of six wells. A limited bid was also launched for the North King Mariout offshore area, which will be closed at the end of February.

Moreover, four projects for the development and production of gas were completed, and 12 wells were linked to production, adding 375 mcf of gas and 12,100 barrels of condensate, Galal said.

Natural gas was also delivered to about 700,000 housing units out of the 1.2 million housing units targeted throughout the year. It was also connected to 95 factories and 5,200 commercial establishments, including 3,200 subsidized municipal bakeries. Additionally, gas was delivered to 34 areas which benefit from the natural gas service for the first time.

Meanwhile, 42,000 cars were converted to use natural gas as fuel, 210 new gas refueling stations started operations, and another 300 stations are being completed within the framework of the rapid deployment plan for these stations in the light of the presidential initiative to expand the use of natural gas for cars as fuel.

Natural gas has been connected to 98 villages, benefiting nearly 300,000 housing units. Gas networks are being connected to 72 other villages within the presidential initiative Hayah Karima (decent life), while 835,000 prepaid gas meters have been installed.

The total amount of natural and liquefied gas exports reached 3.5 million tons during the first half of 2021/22, and is expected to rise to 7.5 million tons by the end of the current fiscal year, Galal pointed out.

El Molla highlighted the increasing role played by the natural gas sector in driving growth and development in the Egyptian economy. He explained that the noticeable increase in the volume of Egyptian exports of natural gas during the recent period has had a positive influence on the gross domestic product (GDP).