Gas field of Egypt - REUTERS
CAIRO – 6 February 2018: Capital Economics estimated that the increase in gas production in Egypt will translate into a 2.8 percent increase in the real gross domestic product (GDP) over the next three years, according to a report on Tuesday.
Capital Economics added that the increase in GDP is likely to come this year if the government manages to persuade Eni to accelerate production of Zohr, followed by a smaller increase in 2019-2020.
Gas production could reach up to 9 billion cubic feet of gas per day by 2020, up from an average of 5.1 billion cubic feet of gas per day last year, according to the report.
“The start of production from Zohr and a number of other gas fields will provide a substantial boost to Egypt’s economy over the next few years,” Capital economics said in the report.
The report noted that Egypt will be a net gas exporter this year for the first time since 2014.
“By our estimates, the swing in net exports could amount to as much as 5 percent of GDP, as the output from gas fields will be freed up for export,” the report said.
The report clarified that the country could revert to a net gas importer in as little as five years’ time as a result of a fast-growing population which means that domestic energy consumption is likely to continue rising sharply over the coming years.
It added that Egypt will need to attract greater investment into its energy sector in order to maintain its status as a net gas exporter.
Minister of Petroleum Tarek al- Molla said that Egypt accomplished four important projects for gas production in 2017 to add 1.6 billion cubic feet of gas per day, according to his speech in the Egypt Petroleum Show 2018.
These projects included north of Alexandria’s fields Torres and Libra, Atoll, Norse and Zohr, which began production lately.
President Abdel Fatah al-Sisi inaugurated the giant Zohr gas field on Wednesday. It is one of the largest offshore gas fields discovered in the Mediterranean.
The total gas in place of the Zohr gas field is around 850 billion cubic meters (30 trillion cubic feet).