Gas deal with Israel is solution regarding arbitration with EMG: PM

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Fri, 23 Feb 2018 - 09:22 GMT

BY

Fri, 23 Feb 2018 - 09:22 GMT

Press Photo - Egypt’s Prime Minister Sherif Ismail

Press Photo - Egypt’s Prime Minister Sherif Ismail

CAIRO – 23 February 2018: Prime Minister Sherif Ismail said that the gas agreement signed by private Egyptian company Dolphinus with Israel is a part of the solution regarding international arbitration with the carrier company EMG.

The prime minister added at a press conference that there are more than one arbitration cases with Israel, one of them is with the Israeli electric company and the other one is with EMG.

He pointed out that the government is now focusing on the new gas discoveries, referring that gas production will increase to 3,000 million cubic feet per day by the end of 2018.

Ismail added that Nawras field produces 1,150 million cubic feet, Atoll field produces 350 million cubic feet per day, and the West Delta produces 700 to 750 million cubic feet per day.

The total production of Zohr field is 2,700 million cubic feet, with an initial production of 350 million cubic feet, the prime minister clarified.

He explained that by the end of 2018 Egypt will achieve self-sufficiency of natural gas, and in 2019 there will be a surplus, explaining that Egypt will not export its surplus, but it will be used in the developmental axes of Egypt.

Ismail added that the reserves of Zohr gas field are equivalent to all reserves found in the eastern Mediterranean.

Around 64 BCM of natural gas from Israel’s Tamar and Leviathan reservoirs will be exported to private Egyptian company Dolphinus over a decade for $15 billion, according to a Monday statement by Delek Drilling, one of the two companies leading gas projects in reservoirs.

The agreement stipulates that the supply will continue until 2030 or until the 64 billion cubic meters have been fulfilled, whichever is sooner.

Egypt is expected to stop importing liquefied gas by June 2018, after the production of its giant Zohr gas field began by the end of 2017; Zohr contains about 850 billion cubic meters (30 trillion cubic feet) of gas.

In addition to Zohr, Egypt accomplished three other gas production projects which are Torres and Libra, Atoll, and Norse.

These four projects added 1.6 billion cubic feet of gas per day to raise Egypt’s daily production to 5.5 billion cubic feet a day.

Deputy Chairman of the Egyptian Natural Gas Holding Company (EGAS) for production and fields’ development Mohamed Abdel Azim said earlier that Egypt’s natural gas production will reach some six billion cubic feet a day by the end of fiscal year 2017/18.

The new discoveries are expected to turn Egypt into a net exporter of natural gas as the country is expected to halt gas imports by mid 2018.

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