Cairo – Mubasher: Egypt is on track to become a net gas exporter again in the medium term as the recent natural gas discoveries have lured overseas investors, which in return will raise gas output.
Once an energy exporter, the North African nation has turned into a net gas importer in 2015 due to growing domestic demand and declining production levels, according to a recent report by the US Energy Information Administration (EIA).
The non-OPEC country has become the largest oil producer and the third-largest dry natural gas producer in Africa following Algeria and Nigeria, the report said.
Egypt also has the largest oil refining capacity in Africa, although it operates well below capacity due to ageing and maintenance issues.
The Arab most populous country also plays a pivotal role as a major transit route for oil and liquefied natural gas (LNG) shipped from the Persian Gulf to Europe and to the US through its operation of the Suez Canal and the Suez-Mediterranean (SUMED) Pipeline, the report highlighted.
The Arab nation also serves as a main transit route for shipments heading southbound from North Africa and Mediterranean countries to Asia, the report added.
The Egyptian government is working on the energy sector’s development to regain investors’ confidence as the International Monetary Fund (IMF) had posted that the 25 January Revolution led to an economic deterioration and a sharp slip in the nation's tourism revenue and foreign direct investment (FDI), the report indicated.
Egypt's oil consumption currently outstrips its production, therefore the country aims to meet oil demand amid falling production.
In 2016, Egypt has become the largest oil and gas consumer in Africa, accounting for nearly 22% of petroleum and other liquids consumption and 37% of dry natural gas consumption in Africa.
EIA expects that the energy subsidies cut may reduce consumption growth in the near term, while energy consumption is projected to maintain growth in the long term.
The country has maintained a sustained level of exploration activity, mostly gas finds than oil, according to the report.
