CAI Capital: The supply of natural gas improves until 2021

Egypt achieves gas self-sufficiency by 2020 thanks to new discoveries in the Mediterranean
Government must link natural gas prices to the cost of imports
2017 and 2020, thanks to huge deposits of natural gas penetrated into the Mediterranean, contributing to the rate of growth of production during this period of 17.2%.
According to the report released today by the Bank, Egyptian imports of liquefied natural gas, In 2016 to about 9.1 billion cubic meters, accounting for 22.5% of the total supply of the field Demand for natural gas during the period of 2001 to 2017 has reached about 7.5% per year, equivalent to 32% of the supply of new fields at the top.
He expected Egypt to become For the self-sufficiency of natural gas in 2019/2020, in order to slow down the pace of gas demand in the domestic market, and predicted that the imbalance in the balance of natural gas in Egypt in 2021, and the deficit between the production and consumption of gas in the domestic market,
Tariq al-Mulla, Minister of Petroleum and Mineral Resources, had previously confirmed the continuation of the Oil Ministry's plan to achieve "We have many natural gas projects that will be able to achieve self-sufficiency in natural gas during the current year, but most importantly the northern project of Alexandria and the field of return. "
The report justified "The deficit between the production and consumption of gas on the market is offset by an increase in local gas needs in 2021, due to population growth and the steady decline in natural resources without new discoveries of gas billion cubic meters, expand to 7. 9 billion cubic meters in 2022 and 9.9 billion cubic meters in 2023.
According to the report, the Egyptian government needs reforms to ensure the availability of gas natural gas, including increased investments in the gas market.The report states that the government should gradually increase natural gas prices because of high production costs. "In the long run, the government must link natural gas prices to natural gas prices. import price between 8 and 9 dollars per million of thermal units. "Gas import from Israel before 2020," where agreement is needed Get the appr Regulatory and governmental obguments of the Israeli and Egyptian governments, highlighting the study of the possibilities of transporting gas to Egypt, including the use of the east-Mediterranean gas pipeline or a Jordanian gas pipeline -Israel or the establishment of a new pipeline between the two countries.
Israel and Noble announced in February that they have signed an agreement to export Israeli natural gas to $ 15 billion worth of Egyptian private sector companies from Temar and Lothian fields to be re-exported to Israel. from other countries
Natural gas in Egypt long-term ", According to the report, which" requires further imports of liquefied natural gas, is a key element to meet the needs of domestic demand in the long run. the absence of new gas discoveries. "
The cost of one million thermal units at $ 6.5, and the calculation of the transportation and distribution costs necessary to deliver the gas to the end user, will range between 7. , 5 and 8 dollars per million thermal units. Natural gas comes only to fill a bond "This will have a negative impact on the availability of natural gas in the domestic market, forcing Egypt to pay more for gas imports from abroad."
The report argues that the Israeli gas The European market in the form of liquefied natural gas shipments to Egypt "is unreasonable", justified by the expectations of the transformation of Egypt in 2021 into a deficit between production and consumption of domestic gas, which requires the use of Israeli gas, in addition to gas prices in Europe Much lower than the price of Israeli gas imported, as well as the cost of S. "The possibility of import Cyprus natural gas is still unclear, "he said, noting that the government exempts industrial gas users from rising prices. Natural gas, but in the long run, the majority of Egyptian consumers should get natural gas when the price of imports equals 8 to 9 dollars per million BTUs. He expected the government to continue to raise prices for economic energy, all the more so as current energy prices did not rise. selling price of natural gas used in households and commercial activity equivalent to domestic use according to consumption segments, which range from 0 to 30 cubic meters of 1.75 pounds per cubic meter instead of A book. With an increase of 75% and more than 30 cubic meters to 60 cubic meters to 2.5 pounds per cubic meter, instead of 1.75 pounds, an increase of 42.8%, and more than 60 cubic meters up to 39 to 3 pounds per cubic meter, instead of 2.25 pounds 33%.
CI Capital states that new and renewable energy production projects are not intended to increase energy production in Egypt, but seeks to increase the contribution of non-invasive fuel sources in exchange for energy. Almost total dependence on natural gas, while the government is trying to reduce the long-term pressure on the natural gas sector. , According to the report.