Amid declining domestic gas production, Egypt plans to lease a floating gas liquefaction unit from Germany to enhance its energy output, according to a statement from the Egyptian petroleum ministry.
As the country grapples with rising domestic demand, particularly in the summer months, efforts are underway to boost production from the Zohr offshore gas field. Zohr’s operator, Eni, resumed drilling in early 2024 following a decline in output to 1.9 billion cubic feet per day—well below its 2019 peak.
Petroleum Minister Karim Badawi discussed the leasing arrangement with Philipp Steinberg, Germany’s Director-General for Economic Stabilization, Energy Security, and Hydrogen Infrastructure, during an energy conference in Houston, Texas. The two parties also explored potential German purchases of Cypriot gas processed at Egyptian liquefaction facilities for re-export to Europe.
In a related development, Egypt and Cyprus recently signed agreements to facilitate the export of Cypriot offshore gas through Egypt’s infrastructure, reinforcing the Eastern Mediterranean’s role as a critical energy hub.
Source: Reuters
