The Egyptian Natural Gas Company has contracted Hill International to assist it in an ambitious project to deliver more access for households to a supply of affordable and reliable natural gas connected to the grid. The entire project is comprised of three component parts – the expansion and connection of the gas supply, the provision of financial support to low-income households for gas payments, and improvements in accountability, fiscal transparency and governance structure. Hill International has been taken on board to help deliver the project’s second component, providing management, consultancy, preparation and supervision services. John Hiscocks is a lead architect for Hill International. You can read more about Hill International in the attached PDF document.
Financial Support Component
The financial support component of the EGAS project is funded through a French Development Agency-managed European Union Grant. The specific scope of Hill International’s work is to prepare and oversee visibility planning and communications strategy implementation. EGAS has also contracted Hill International to assist with establishing a system for database management, including documentation, document control, reporting, follow-up systems, and support for EGAS Customer Service Centres to be established and modernised. Training will also be provided by Hill International for Component Stakeholders and the Project Management Unit of EGAS. EGAS will be relying on this technical support for the efficient utilisation of the EU Grant and to make targeted customers aware that a connection fee subsidy is available.
In addition to the project, EGAS has announced its intention to put bids forward for nine concession areas of natural gas exploration on land and offshore. Security approvals have been obtained for the bidding process, which involves three land areas and six marine areas. Reserves of natural gas in the Mediterranean basin have been estimated by the United States Geological Survey at 122tn cubic feet, with a further 107bn estimated barrels of crude oil. EGAS has a plan prepared to offer bids annually for exploration of natural and shale gas. EGAS had four tenders accepted in 2015 for natural gas exploration in Mediterranean maritime zones. Offers were also accepted from Eni and BP for exploration in the marine areas of North Ras El Esh in the Mediterranean. The EGAS bids will see a minimum investment of $306 million. You can find out more about EGAS by watching the embedded short video.
Egypt’s Domestic Natural Gas Production
Egypt’s Minister for Petroleum has encouraged global bidding for crude oil and gas as part of a strategy to attract more new investment into Egypt from international companies. The strategy is designed to increase production and add new reserves of petroleum products to meet increased domestic requirements. You can find out more about the natural gas industry in Egypt via the infographic attachment.
In 2017, the ministry succeeded in adding natural gas production for domestic use of approximately 1.6 billion cubic feet, taking the total to 5.5 billion cubic feet per day. The increase came mainly from wells in North Alexandria, Atol and Nor, with the remainder from the Zohr well of Eni. Once self-sufficiency has been achieved, reserves of natural gas will the be exported from Egypt. Offers were accepted from Eni, BP, Total and Edison for gas exploration in sectors 7, 12 and 14. It is expected that the natural gas production of Egypt in 2018 will reach 6.3 billion cubic feet per day. This compares to a high of 6 billion cubic feet per day, according to EGAS indicators, in the latter half of 2017. Tarek El-Molla is the Minister of Petroleum and Mineral Resources in Egypt.