Europe will have to sit tight as it waits for more LNG from Egypt: Egypt will boost its LNG exports to Europe in the long term, but the energy-deprived continent will have to wait another two years during which global supplies are expected to remain tight, Oil Minister Tarek El Molla told Bloomberg yesterday. The country is aiming to increase its LNG exports by around 40% starting 2025, the majority of which will be earmarked to the European market, he said. “I would expect to reach full capacity by 2025 … This is the time when the current drilling campaign that we are undertaking will materialize.” Egypt’s two LNG plants have a maximum capacity of 12 mn tons a year.

Europe is already taking up a big chunk of our LNG exports: Around 80% of the 7.5 mn tons of LNG Egypt exported last year went to Europe, the minister said earlier this week. Exports this year are expected to remain flat.

And there’s more to come: Last year Egypt and Israel inked an MoU to increase gas exports to the EU as the continent looks to phase out its reliance on Russian fossil fuels. Under the agreement Israel will supply more gas to Egypt’s LNG facilities before exporting it to Europe.

USD 8 bn of investment this year? A number of international energy players want to boost their operations locally, El Molla said, pointing at Exxon Mobil, BP, and Shell. The country should see some USD 8 bn in investments into oil and gas exploration this year, he said.

IN OTHER ENERGY NEWS-

INA and Energean get the greenlight to start drilling new concession: The Egyptian General Petroleum Corporation (EGPC) signed a concession agreement with Croatian oil and gas company INA and UK-based Energean, allowing the two companies to begin exploratory drilling at their 50-50 East Bir El Nus concession in the Western Desert, according to a press release (pdf) by INA.

El Molla sat down with the president of Italian EPC contractor Tecnimont Alessandro Bernini and Mubadala Energy CEO Sheikh Mansoor Mohamed Al Hamed to discuss cooperation in the oil and gas industry, refining, and the transition to clean energy, the Oil Ministry said.