Can Egypt Become A Global LNG Power? - OILPRICE.COM

Dec 13, 2021, 2:00 PM CST
Cyril Widdershoven

• As demand for LNG around the world soars ahead of winter, Egypt is taking full advantage of high prices
• As well as the financial reward of increased exports, Egypt appears to be using its LNG supply to influence Turkey
• In Turkey, support for Erdogan is dwindling amidst high energy prices and rising inflation, forcing him to open up to both the UAE and Egypt

Egypt’s long-suffering LNG industry is finally experiencing some success as it takes advantage of European gas market constraints and exploits regional geopolitical developments. Cairo’s dream of becoming a global LNG player was derailed by a combination of the Arab Spring, conflict with Turkey, and then COVID demand destruction. Now, however, the country’s LNG industry is poised for major growth, with its largest producer, EGAS, having just offered a cargo on a free-on-board (FOB) basis for loading over December 28 and 29 from its Damietta LNG plant. The EGAS LNG tender will be closing on December 13, sources have stated. The last EGAS LNG tenders, which closed on November 29, were successful, as the company sold four out of five spot cargoes for loading between December and February.

Greece and Egypt reach compromise in eastern Mediterranean - ARAB NEWS

09 March 2021

ATHENS: Greece and Egypt reached a compromise on Monday in their disagreement over oil and gas exploration in an area of the eastern Mediterranean.

The spat had given Ankara an opportunity to mount a diplomatic offensive in an attempt to show that Turkey and Egypt were close to reaching an agreement of their own on maritime-exploration zones.
However, Greek Prime Minister Kyriakos Mitsotakis spoke a few days ago with Egyptian President Abdel Fatah El-Sisi. Soon after, it was announced that Greek Foreign Minister Nikos Dendias would travel to Cairo on Monday to meet his Egyptian counterpart Sameh Shoukry.

After the meeting, Dendias said the contentious issue concerning one of the three Egyptian exploration areas, which follows the boundaries of a previous agreement between the two countries but also extends eastwards into an area claimed by Turkey, was merely a “technical one” and had been resolved. The coordinates of the disputed block were reportedly adjusted after consultations between Egyptian and Greek experts.

EGYPS Day 1 Highlights - ENTERPRISE

Tuesday, 12 February 2019

New, investor-friendly production-sharing agreements are in the spotlight as gov’t pushes Egypt as a regional energy hub. The three-day Egypt Petroleum Show, which got underway yesterday, is best thought of as the physical embodiment of the Sisi administration’s strategy to position Egypt as the premier eastern Mediterranean energy hub. Domestic and international media offered wall-to-wall coverage.

If you read nothing else, read this from Reuters: “Egypt’s gas output will get a boost this year as the country’s huge Zohr field nears peak production and with USD 1.8 bn in investment from BP, officials said on Monday, as Egypt returns to export markets and positions itself as a regional hub.” Egypt is leveraging its “strategic location and well-developed infrastructure to become a key international trading and distribution center for gas, a potentially remarkable turnaround for a country that spent about USD 3 bn on annual liquefied natural gas (LNG) imports as recently as 2016.”

Digging into the highlights from yesterday:

Greece, Egypt back Cyprus gas exploration - THE WASHINGTON POST / ASSOCIATED PRESS

October 10 at 12:55 PMDerek Gatopoulos and Menelaos Hadjicostis

ATHENS, Greece — The leaders of Greece and Egypt on Wednesday backed efforts by regional ally Cyprus to exploit off-shore gas deposits, despite strong objection from Turkey.

Greek Prime Minister Alexis Tsipras hosted a meeting Wednesday with Egyptian President Abdel-Fattah el-Sissi and Cypriot President Nicos Anastasiades on the island of Crete. The talks were the sixth meeting between the three leaders aimed at forming an energy-based alliance in the east Mediterranean.

U.S. energy giant ExxonMobil will search for natural gas off the coast of Cyprus by the end of the year, a senior executive said last week.

“We have clearly expressed our support for Cyprus in its efforts to capitalize on the sovereign rights deriving from International Law regarding (offshore deposits) and to make progress in their exploitation,” said Tsipras.

Egypt warns Turkey over eastern Mediterranean economic interests - REUTERS / JERUSALEM POST

FEBRUARY 7, 2018 13:26

CAIRO - Egypt on Wednesday warned Turkey against any infringement of its economic rights in the eastern Mediterranean under a maritime border demarcation agreement signed in 2013 with Cyprus that allows exploration for gas in the area.

The discovery of the massive Zohr gas field in 2015 has spurred a race for exploration in the eastern Mediterranean, an area that is believed to hold big natural gas deposits crucial for energy-hungry Europe.

Turkish Foreign Minister Mevlut Cavusoglu appeared to raise objections over the 2013 agreement when he announced that Turkey was planning to start exploration work in the eastern Mediterranean soon.

Egypt raps Turkish comments on EEZ delimitation with Cyprus - CYPRUS MAIL

FEBRUARY 7, 2018

No party can question the legitimacy of the delimitation agreement between Egypt and Cyprus and any effort to undermine Egyptian sovereignty in its exclusive economic zone is dismissed and will be addressed, the Egyptian foreign ministry said on Wednesday.

In a statement in response to recent comments by Turkish Foreign Minister Mevlut Cavusoglu questioning the correctness of the delimitation of the exclusive economic zones of Cyprus and Egypt, Spokesman for the Egyptian foreign ministry Ahmad Abu Zeit said, “no party could question the legitimacy of the agreement given that it is in line with the regulations of international law and has been submitted to the United Nations”.

Replying to questions, Abu Zeit warned that any effort to undermine the sovereign rights of Egypt in the region is considered to be rejected and will be addressed.

Why Developing Israel’s Leviathan Gas Field Is a Mammoth Task - KNOWLEDGE @ WHARTON

Aug 25, 2017

Suddenly, it’s all happening in the Eastern Mediterranean.

After years of delay, confusion and dwindling hopes, the efforts to develop the offshore natural gas Israel discovered in 2009-2010 — especially the giant Leviathan field — are back on track. This rebirth began late last year, but it is the slew of developments in recent weeks which seems to signal a move into much higher gear.

If Israel’s potential as an energy producer is this time fulfilled, it will impact everything from regional geopolitics to the commercial prospects of the specific American, Israeli and Greek-Cypriot energy companies now engaged in exploration and production. But that remains a very big “if.”