The Egyptian Natural Gas Holding Company (EGAS) announced in its annual report for the fiscal year (FY) 2018/19 that it will launch a new international bid round during the FY 2019/20 on the western part of the Mediterranean Sea to attract more foreign investment.
EGAS added that it plans to drill 15 exploratory wells in the Mediterranean Sea and Nile Delta with an estimated cost of about $422 million during the coming FY.
Moreover, EGAS aims to sign four development leases in the Mediterranean Sea and Nile Delta, with a signing bonus of $5.3 million.
The annual report revealed that 12 natural gas development projects will be on stream, with an initial gas production of 2.046 million standard cubic feet per day (mmscf/d), and an average weighted added production of 1.464 mmscf/d, with an estimated cost of $7.108 billion.
Also, 43 development wells will be on stream, with initial gas production of 399 mmscf/d, and average weighted added production 262 mmscf/d. Accordingly, the total average weighted added production from new projects and development wells will be about 1726 mmscf/d in FY 2019/20.
EGAS plans to achieve a total gas consumption rate of 6.222 mmscf/d, adding that it will supply two new electric power stations to be working with natural gas as a fuel, such as new west Cairo power station and new Assiut steam power station. Additionally, it plans to supply Al Waleydea power station (an unlinked power station) with natural gas instead of Mazut.
It is noteworthy that EGAS has signed Memorandum of Understanding (MoU) with Toyota in order to study the way to implement the LNG bunkering project in Egypt, as the plan has been amended to become 1.2 million customers instead of 1 million after the high implementation rates during 2018/2019.