During a recent meeting between ENI CEO Claudio Descalzi and Egyptian President Abdel el Sisi, the ENI CEO disclosed that his firm would have the massive Zohr natural gas field online by the end of 2017.
Italian energy company Eni made its initial gas discovery in the Zohr field in August 2015 and quickly described it as the largest ever made in regional waters and potentially the largest in the world. It is estimated that the field contain 30 Tcf of natural gas resources.
Descalzi briefed the Egyptian president on ENI’s investment plans in the country. According to the CEO, his company plans to increase its energy exploration investments in Egypt to $3.5 billion in 2017.
In a related context, a report from consultant group Wood Mackenzie found that Economic potential for Egypt hinges on a natural gas sector primed for a major recovery and to cover the obstacles facing the Egyptian gas sector. A profile of the Egyptian gas sector from Mackenzie group finds the sector is on pace for a profound change in the next five years.
After swinging from the world’s eighth largest liquefied natural gas exporter in 2009 to the world’s eighth largest LNG importer in 2016, the wheel is set to turn again.
The IMF, however, said the economic potential for Egypt is “immense” and significant investments in the energy sector and major new natural gas discoveries are contributing to its potential.
Also according to Wood Mackenzie, the Egyptian gas market will get benefits with new volumes from some of those discoveries. Production levels will reach a record of 7.3 billion cubic feet per day within six years.
Egypt aims to become a regional hub for liquefied natural gas, despite the availability of gas for domestic sector can reduce the opportunities to export, especially in the summer periods in which the gas for domestic demand intensified to feed the electricity sector.
But Egyptian Authorities has some other reports indicate that 80% of the mineral and oil wealth in Egypt yet to be discovered, especially in the areas surrounding the coasts of the Mediterranean and parts of Western Desert.