Mobile phones increase global remittance flows by 8.6% in 2021

By Adedapo Adesanya

The European Commission has proposed a deal to speed up imports of natural gas from Egypt to reduce its dependence on Russian gas.

As Egypt steps up its efforts to become a major liquefied natural gas (LNG) player through increased exploration, production and construction and infrastructure upgrades, the South African country Nord is well placed to develop its energy exports to Europe while meeting African energy demand.

Due to its strategic location close to European markets as well as its success as a gas exporter, Egypt emerged as an ideal supplier for Europe following the Russian-Ukrainian conflict.

In 2021, Egypt exported approximately 8.9 billion cubic meters (bcm) of LNG, of which 63% is destined for Asian markets and 31% for Europe.

In 2022, this figure is expected to increase significantly following upstream developments, including the discoveries of Zohr, Atoll, Nooros and the West Nile Delta, as well as new commitments from Europe to invest in Egyptian gas projects. .

As the Egyptian government prepares to introduce new rounds of licenses in the offshore frontier regions, new players are expected to enter the market while existing companies step up their own exploration initiatives.

Already, Italian energy major Eni has acquired two exploration blocks in the Meleiha concession following oil and gas discoveries in April 2022 in the Nada E Deep 1X well.

Meanwhile, companies such as BP, APEX international, Energeen Egypt, INA-lndustrija Nafte dd, Sipetrol and United Energy are expected to pump in new investment, drilling up to 33 new wells under government-issued licenses in the part of the 2021 international tender. Round in the first quarter of 2022.

These licensing rounds, coupled with the government’s new exploration campaign, have positioned the country as a highly competitive market as well as one of the world’s leading exporters.

As Egypt seeks to increase its exports, European nations are turning their attention to the North African country, recognizing the opportunity to replace Russian gas with that from Egypt.

Earlier this month, the European Commission proposed an agreement between EU states and Egypt and Israel whereby Eastern Mediterranean states will increase gas exports to the bloc.

Scheduled to be signed at the end of June 2022 following government approvals, the agreement will usher in a new era of trilateral trade while strengthening European energy security.

Meanwhile, major European energy group Eni is focusing on stepping up exploration and production in Egypt to bolster supply channels between the North African country and Europe.

In April 2022, Eni signed an agreement with the Egyptian state energy company, the Egyptian Natural Gas Holding Company, to increase exploration in the Nile Delta, Eastern Mediterranean and Western Desert regions, boost production and streamline export processes by restarting development of the multi-billion Damietta Liquefaction Plant and Gas Export Terminal in Damietta.

The deal will not only improve E&P in Egypt, but position the country as a global energy exporter and Europe’s preferred supplier.

Furthermore, with the agreement paving the way for Egypt to export up to three billion cubic meters of LNG to Europe via Italy from 2022, gas monetization in the South African country North will reach greater heights.

Already, Egypt has seen a 98% increase in export revenue to $3.9 trillion in the first four months of 2022 and a 768% increase between 2020 and 2021, according to the Ministry of Petroleum and Mineral Resources.