This study is taken from Oxford institution for energy studies written by: Randa Alami

And updated from:

Reported to Mr. Albert Gress the General Manager of CEPSA Egypt.Modified by Raouf Reda Habib.

THE DEVELOPMENT OF THE EGYPTIAN GAS INDUSTRY

Egypt has managed to increase the production, delivery & consumption of ever increasing volumes of the natural Gas, with output & consumption levels quintupling over that time.

Figure 1 : Egyptian natural gas production and consumption.

Egypt Gas reserve increased due to the many gas discoveries in Egypt since 1992

The Domestic Demand

The rapid rise in natural gas reserves has led to a search for export options. Which has become particularly important to Egypt’s future international balance of payment due to the decline in oil exports.

Natural gas demand has grown rapidly in Egypt, mainly driven by increased demand form thermal.

The Western Desert

Two areas in the Western Desert -- Obeiyed and Khalda – have shown great potential for increasing Egypt's natural gas production in the near future. This area is appealing as it has both lower development and operating costs than in the Mediterranean region and an expanding network of pipelines and processing plants by which to quickly transport production upstream.

The pipelines in the Western Desert were from the beddredine fields to Ameriya (270 Km east) & from the offshore fields of Matrouh to Khalda (95 km southeast). but there was a lot of changes in the last period, they start constructing a lot of pipe lines in the Western Desert as shown in the coming Map (from BP).

Pipelines

• Condensate 464 km; condensate/gas 94 km; gas 6,021 km; liquid petroleum gas 897 km; oil 5,120 km; oil/gas/water 36 km; refined products 897 km (2006).

Ameriya northwest to Sidi Kerir: 24 inch, 28 km, 200 mcf/d (5.6 mcm/d) to Sidi Kerir power facility.

Ameriya eastwards to Dahshour (south centre): 32 inch, 200 km, 550 mcf/d (15.4 mcm/d) to industrial areas in Dahshour.

In the Western Desert (24 inch/60km from Alexandria southwest-wards to Borg Elarab).

In the Nile Delta (32 inch/170km from Idku to Damietta, 15 mcm/d). Around Cairo (32 inch/140km from Meit Nama to the Cairo hub, 20 mcm/d); and Across the Sinai (24 inch/40km) a spur continuing the north Sinai pipeline eastwards

from Arish to the Sinai Cement Company.

LNG

LNG

Two LNG export projects are being built in Egypt: a one-train liquefaction facility at Damietta, which will start operations in 2004 with an annual capacity of 244 Bcf (5.0 million tons), and a two-train project at Idku with a 2005 startup date and a projected annual capacity of 175 Bcf (3.6 million tons). All of the Idku

LNG is contracted to Gaz de France. Commitment to a second 175-Bcf-per-year (3.6-million-tpy) train was announced in September 2003. British Gas (BG) has agreed to buy the entire output for U.S. and Italian markets.