Flame Conference

Day One of the Flame Conference: Region-by-Region

Day one of the Flame conference, on the 15th May 2018, covered a range of topics, including everything from gas production and transport, to delivery of gas and technological improvements, with insights into how gas is traded and paid for. Here is a snapshot of a few of the topics covered.

Egypt

In the case of Egypt it was explained how the country is turning itself into a net gas exporter. Until the recent change of government, demand for gas was failing to keep up with demand for a number of reasons. These included a number of policy failures by the government including arrears in payments to gas producers, and artificially low gas prices, which encourage demand yet discouraged investment, combined with a bureaucratic business approval process.

However, since the new President has come in, much progress has been made to encourage new investment. This has included increasing domestic gas prices especially for industry and commerce, plus reform of the energy and business environment. As a result, Egypt is now a much more attractive place to invest; and in consequence of such reforms there has been much interest in the country, resulting in new discoveries including the mega gas field Zohr.

In the near future, it is likely that Egypt will be a seasonal exporter of gas during its winters, when there will be a decline in demand to allow surplus gas production for export. Nonetheless, given current growth rates in demand for gas, Egypt is likely to return to becoming a gas importer at the end of the next decade unless more gas finds arrive in the coming year. It is not surprising that Cairo has ambitions to be a regional gas hub, developing pipelines to actual and potential gas discoveries in neighbouring countries like Israel and Cyprus. Read more  https://knect365.com/energy/article/53cb815f-3fd0-45fe-b377-dcc0d8330bb2/dad-one-of-the-flame-conference-region-by-region

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