Enppi has completed the technical and financial studies for the import of gas from Cyprus, the results are currently under review by EGAS to begin extending the maritime pipeline to Cyprus for imports to commence.

EGAS Chairman Khalid Abdul-Badi told Al-Borsa that the technical and financial studies include specifications and the cost of linking the Egyptian territory with the Aphrodite field in Cyprus.

He added that the quantities to be imported amount to roughly 700 mcf/d of gas, and are expected to begin in 2018.

EGAS signed a memorandum of understanding with the Cyprus Hydrocarbon Company during the March economic summit in Sharm el-Sheikh, trading information on building a pipeline to import gas from Cyprus distance of 400 kilometers.

A Ministry of Petroleum official also expected that the private sector would enter into the deal to import gas from Cyprus because it would be better and cheaper, and that costs would not exceed $6 per million BTUs compared to $10 per million BTUs for LNG, let alone the cost of receiving the amount and converting it.

He added that the regulations needed to establish a governing body to oversee natural gas consumption by the private sector has been completed, giving the private sector the ability to resolve its own fuel needs.

The official said that the laws for the regulation of gas consumption will allow the private sector to apply for the import of fuel needs directly, after attaining the required approvals.

He explained that the state will receive a financial tariff in exchange for transferring the gas through the national grid, until it reaches the final destination at the consumer end. In the case of imported LNG the consumer will bear the expenses of gasification, using the formula EGAS has a contract for. The official also stated that the governing body would be launched by October.

The official explained that the government decided to liberalize the energy market and allow the private sector to provide for its own fuel needs following the decline in Egypt’s production of natural gas to 4.3 bcf/d during the current fiscal year, compared to 6.06 in 2009/2010.

Source: Al-Borsa