Tuesday, April 16, 2024

Egyptian gas to alleviate Europe’s fear … “Eni” is the password


The Italian energy group Eni has pledged to ease Europe’s energy crisis by supplying an additional 14 trillion cubic feet of gas to world markets.

“We are increasing our gas production and will export everything we find to Italy and Southern Europe,” Eni CEO Claudio Descalzi said.

It is taking advantage of “existing alliances with producing countries”, including Egypt, where the Italian company will work with Egypt and other countries to provide alternative sources of gas to Europe, with European countries planning to gradually reduce their dependence on Russia. Energy sources after the invasion of Ukraine.

Europe is facing the biggest energy supply shock. Although the energy sector has so far escaped direct Western sanctions, uncertainty about the war has pushed up oil prices. Investment bank Goldman Sachs recently raised its forecast for immediate action to 2022 to $ 135 a barrel, while Norwegian consulting firm Rystad Energy believes prices have reached an all-time high of $ 200 a barrel.

Eni in Egypt

The company is intensifying work on “gas suppression programs” in Egypt, Congo, Angola, Indonesia, Nigeria and Mozambique, and Eni expects its LNG production to exceed 15 million tons annually.

As part of the government’s tender for 2021, the Eni gas exploration concessions have recently become particularly active in Egypt, and the Italian group has set aside at least $ 1 billion for oil production in the Suez Gulf and the Nile Delta.

The importance of Egyptian gas exports has increased in recent months amid an energy crisis that Europe has not encountered. Egypt is one of the countries Europe is helping to reduce Russia’s dependence on gas.

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Recently, Egyptian Petroleum Minister Tarek El Molla pointed out in press releases the possibility of exporting highly liquefied natural gas due to rising energy prices in all sectors in the wake of the Russo-Ukrainian war.

Egypt’s gas exports to Europe

Al-Mullah discussed the efforts of the Eastern Mediterranean Gas Council to obtain gas supplies to the world markets of the countries of the Eastern Mediterranean Gas Council during the recent CERAWIC International Energy Conference.

Egyptian gas exports to Europe exceeded two million metric tons in 2021, up from 270,000 in the previous year, according to Standard & Poor’s Global Platts, citing shipping data analysis firm Kepler.

Meanwhile, Egyptian Petroleum Minister Tarek El-Molla said in early December that Egypt was exporting its full capacity of natural gas, which is about 1.6 billion cubic feet a day, from two gas stations. Benefiting from international price hikes.

Al-Mulla pointed out that exports are expected to fall by one billion cubic feet a day next April due to regular seasonal fluctuations, with domestic consumption increasing with the arrival of summer.

The minister added that Egypt’s natural gas production is stable and currently stands at 6.5 to 7 billion cubic feet per day.

Al-Mullah said in separate statements during the Eastern Mediterranean Gas Forum that “Egyptian gas has a role to play in protecting Europe’s energy needs. The liquefaction units are now operating at full capacity as we seek to increase our natural gas exports. Rising international gas prices.”

Nikos Chaos, a senior colleague at the Center for Strategic and International Studies, recently said that increasing Egyptian exports to Europe was “short-lived”. “Egypt needs stable investment and imports to maintain exports. Even so, current capacity may be the maximum we can expect from Egypt,” he told S&P Global.

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Earlier this month, Israel began exporting gas to Egypt through an Arab gas pipeline, which is expected to receive 2.5-3 billion cubic meters of gas this year.

Prior to that, Israel sent gas only through the eastern Mediterranean gas pipeline, which runs between Ashkelon and El Arish, with a capacity of 7 billion cubic meters per year.

In the long run, Egypt could significantly increase its exports to Europe through its planned pipeline with Greece, although it is unlikely to operate at any time. The project is still in its infancy, with the two countries holding preliminary talks late last year.

Egyptian gas exports

Egypt reached record highs in liquefied natural gas exports, topping Egypt in the list of Arab countries with the largest growth in natural gas exports in the third quarter of 2021, with exports of about one million tonnes. An increase of about 900% compared to the third quarter of 2020.
Cairo reopens its gas liquefaction plant in Tomita and succeeds in resuming liquefied natural gas exports after a gap of 8 years.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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