Egypt gas revenues could rise more than 50% this fiscal year
Egypt wants to generate USD 8.5-10 bn in natural gas revenues in FY 2022-2023, up from USD 6.5 bn last year, Oil Minister Tarek El Molla told Al Arabiya (watch, runtime: 2:02).
El Molla cited the government’s electricity rationing strategy as being a key driver for the higher expected revenues, telling the broadcaster that Egypt was able to make additional shipments in August due to lower domestic consumption. “Temperatures dropping in September and October would raise our electricity rationing capabilities, and therefore [allow] for more gas to be sent to liquefaction plants [for exports],” he said. Egypt has made two additional gas shipments since the decision to ration electricity consumption came into force last month, Prime Minister Moustafa Madbouly said last week.
Higher spot prices are helping too: Bloomberg forecasts Egypt to export 8.2 mn tons of LNG this year due to higher spot prices in Europe. Gas prices in Europe have surged on the back of the war in Ukraine, which has seen Russia cut gas flows in response to financial and energy sanctions imposed by the EU and US.