Egypt will enter the world of adults in energy .. Here's how the "light field" will change the future of Cairo and put it on the map of gas exporters

Overnight, Egypt became a major regional power in the natural gas export field after the recent discovery of the Noor Field, announced a few weeks ago, which incites pbadionate about energy to talk about the important role of Cairo. McDonald's, chief executive of KWR International, economist and chief economist at Smith & # 39; s Research & Gradings, published an article in US National Interest magazine that highlighted the significant development of natural gas.

According to the American Journal, a new development in the water off the north coast of Egypt can give Europe an energy is a new option that changes the mechanism of energy policy in Europe and Asia after US President Donald Trump criticized the old continent as captive to the desires of Russia

Discovery changed the rules of the game
end of June 2018, A large natural gas field , called Noor, was discovered by Eni, Italy's largest energy company, off North Sinai. Although the preliminary claims of Noor's field size may be exaggerated (as it is not expected to complete the drilling of an exploratory well in the field until August 2018), it is possible that the potential of Egyptian marine natural gas Importantly,

It is estimated that the Noor field contains 2.55 trillion cubic meters of proven gas reserves, which could bring Egypt's proven gas reserves of 1.8 trillion cubic meters. (according to the British Petrolium report in 2016) to 4.4 trillion Egypt is placed at the level of Algeria and Nigeria itself, but will remain behind uncle Qatar, Iran, Russia and the United States. United. With the discovery, badociated with the discovery of a gas field in 2015, Egypt is expected to once again become a gas exporter in 2019.

No doubt important news for Egypt
The discovery of a large natural gas field is an important news for Egypt. The country has suffered since the January 2011 revolution, a brief democratic experiment in which a Muslim Brotherhood government took power in 2012, and a military coup in 2013. In 2014, Abdul Fattah al-Sisi took power, seeking to keep the country The Muslim Brotherhood and stability in an economy have been seriously disrupted, according to the American Journal.

Years of political turmoil have led the Egyptian economy to slip: economic growth has slowed considerably, inflation has remained high, foreign investment has emerged Gap The budget deficit has reached serious levels ( exceeding 10% for several years in a row), and total international reserves fell below enough to cover 3 months of imports of goods and services. In addition, the unemployment rate increased from 9.2% in 2009-2010 to the highest rate of 13.4% in 2013-2014. In addition, the economic situation in Egypt requires the intervention of the IMF to help, according to the American Journal.

From 2018, the Egyptian economy is on the way to stability, with the revival of GDP growth rate, moderation of inflation rates, Financial control plans are in good way. International liquidity reserves also recovered from their low levels. While significant progress has been made, major challenges remain for the Egyptian economy. According to the latest Article IV consultation of the International Monetary Fund, there is a need "to reform the regulatory economic framework, enhance competition, facilitate access to finance and land, strengthen governance, transparency and accountability. accountability of public enterprises and better integration of women and youth into the labor market Another concern for the Egyptian economy is the current account deficit and chronic accounts in Egypt. trade deficit was 11.2% of GDP, while the current account deficit was 6.1% of GDP

Population Growth and Economic Growth Problems
According to the American Journal, the United One of the additional economic factors In the case of Egypt, the size of the population of Egypt, which reached 95.7 million by the end of 2016, according to the World Bank. 39, economy creates emp adequate laws for them requires a relatively high growth rate. The real GDP growth rate was 4.2% in 2017 and the World Bank is expected to reach 5% in 2018. Although the growth rate has increased, Egypt needs faster growth .

From this economic perspective, the decline in oil prices will help the Egyptian national economy, while natural gas exports will help balance the trade account with the current account. At present, Egyptian natural gas is routed to the thirsty home energy market. For example, more than three quarters of the energy in Egypt comes from natural gas plants and local energy consumption increased by 14% in 2017.

Fortunately, Egypt has developed a suitable natural gas infrastructure: Egypt has two stations Liquefied Natural Gas (LNG) was built along the northern coast of Egypt, a very important infrastructure element that converts the gas into a liquid that can be charged. Although it is a major positive factor for Egypt in the development of its natural gas trade, it can also complicate the energy policy in the Eastern Mediterranean.

In February 2018, a $ 15 billion deal was signed between Israeli exporters and an Egyptian company. "Dolphinus", allows Israel to use Egyptian liquefaction plants. The agreement would create a market for Israeli offshore gas Leviathan. Israel already exports gas to Jordan, but has no liquefied natural gas terminal. Building a factory like this would be an expensive project. The undeveloped stations of Egypt were therefore considered as a possible solution: Israel could export its natural gas to Egypt and eventually ship it to Europe. At the same time, Cyprus, which has recently discovered natural gas deposits but does not have a liquefaction plant, is turning to Egyptian companies to help them.

Noor's Field Painted Egypt on an Adult's Map
The discovery of Noor's Field added a new element to the landscape. The question that Egypt now faces is: Should Egypt now establish a link with Israel and Cyprus? Noor's field in Egypt offers greater flexibility in its relations with neighbors, and other natural gas projects can meet national gas needs and add more to the country's export base [19659013]. Israel is on the front of natural gas. As pointed out the international expert in oil economics and World Bank consultant Mamdouh Salama early July 2018: "As an international gas trading center, Egypt will benefit from the conversion of gas Cypriot and Israeli, Lebanese and Syrian natural gas, liquefied natural gas and Export to liquefied natural gas (LPG) to Europe or, more likely, to the Asia-Pacific region, where demand for Liquefied natural gas is rising rapidly. "

For Europe, Egypt is not an immediate substitute for natural gas Russian Federation However, some conditions are already favorable and other conditions are on their way to becoming the main hub of natural gas trade in the eastern Mediterranean, as well as a complex network of potential gas producers, including Cyprus and Israel, and possibly the long-term Lebanon and Syria.
According to the American magazine, despite all of the above, major hurdles must be overcome, including Egypt's decision to go it alone or with trading partners, the Turkish resistance to develop the gas fields of Cyprus and the need To achieve a certain degree of political stability But one thing is certain: building bridges between countries through the diplomacy of natural gas, it's better than making war.The development of a gas center in The eastern Mediterranean, in Egypt in the middle, will contribute to the construction of these bridges by strengthening the regional energy links.