Egypt new bid round: going for gas [Gas in Transition]

Egypt new bid round: going for gas [Gas in Transition]

Egypt is intensifying efforts for a new Zhor-size gas discovery to boost gas production that is currently flagging – it was down in 2022 in comparison to 2021 - targeting 36tn ft3 from this new bid round. [Gas in Transition, Volume 3, Issue 1] by: Charles Ellinas

Egypt’s natural gas sector is on a roll. After achieving record production and LNG exports in 2022, Egypt has announced a new bid round and new gas discoveries. Last year was its most successful in terms of revenues from LNG exports that rose to $8.4bn, providing relief for its beleaguered economy. But with natural depletion, and energy demand rising due to a growing population, Egypt is in constant need for new gas discoveries. New bid round The Egyptian Natural Gas Holding Company (EGAS) launched a new bid round on December 28 that includes six offshore and six onshore blocks (see figure 1). The deadline for offers has been set for April 30, 2023. Egypt is intensifying efforts for a new Zhor-size gas discovery to boost gas production that is currently flagging – it was down in 2022 in comparison to 2021. It is targeting 36tn ft3 from this new bid round. Egypt is responding to a surge of interest from the likes of Eni, BP, ExxonMobil and Chevron, currently very active in its EEZ, with the first three signing new blocks late 2022. The new areas covered, and which are bound to attract considerable interest, are in the promising ‘North of Sinai’ and ‘West Mediterranean’ regions. The onshore bl...