Sherif Abdel Hamid’s Post

Natural gas suppliers meet in Algeria: Producers discuss global challenges The world's major gas producing countries say they will re-double efforts to tackle challenges affecting supplies to the global market. They've been meeting at a summit in Algeria 🇩🇿 Al Jazeera’s Osama Bin Javaid reports from the meeting in Algiers, Algeria. #GasSummit #NaturalGas #AlgeriaMeeting #GlobalChallenges #GasProducers #SupplyChain #EnergySecurity #GlobalMarket #PipelineAttacks

Natural gas suppliers meet in Algeria: Producers discuss global challenges The world's major gas producing countries say they will re-double efforts to tackle challenges affecting supplies to the global market. They've been meeting at a summit in Algeria 🇩🇿 Al Jazeera’s Osama Bin Javaid reports from the meeting in Algiers, Algeria. #GasSummit #NaturalGas #AlgeriaMeeting #GlobalChallenges #GasProducers #SupplyChain #EnergySecurity #GlobalMarket #PipelineAttacks

Egypt, traditionally a natural gas exporter, is now buying liquefied natural gas (LNG) to address its own energy shortages. This unexpected shift is tightening the global LNG market, especially as demand rises worldwide. Egypt's move comes amidst declining domestic gas production and increased reliance on imports, including from Israel. With summer approaching and the potential for high temperatures, Egypt's demand for energy, including for air conditioning, is expected to surge. This situation could lead to supply shortages and price increases in the global LNG market, which is already forecasted to tighten. However, long-term relief is not expected until new LNG plants come online in the US and Qatar, likely by 2026.

Egypt accelerated development the new gas fields and put them since 2016 gradually on crazy gas production rates as maximum gas rates or even the maximum gas peaks to cover the gas consumption in 2018 and stop the gas importing, which caused serious fields problems such as fast reservoirs pressures depletion and water influx into the gas zones such as ZOHR giant gas field, which led now to sharp declining in the gas production rate for Egypt below the gas consumption and stop the gas exporting beside entering all Israel gas into the gas market and also import LNG gas again. As you see here the remaining gas reserve in the old fields in 2015 without the new gas fields were able to cover Egypt gas consumption from 2018 to 2019 beside gas exporting also, so why Egypt accelerated destroying the new gas fields.

Such as I posted before many times, Egypt still has 60% from the total new gas discovery since 2015 without any development! end of 2023, the remaining developed gas reserve 14 TCF can cover Egypt gas consumption rate 2.5-3 years beside exporting yearly gas beside Israel gas 8-12 MMTON/year. The picture not black! just sustain the gas production rate on 2 cases for gas plateau rate. Keeping the gas rate declining means no gas exporting, importing LNG gas by high cost and cut the electricity on the people!!

EGAS purchased shipment of liquefied natural gas from the Aqaba port The Egyptian Holding Company for Natural Gas (EGAS) recently purchased at least one shipment of liquefied natural gas for immediate delivery to the Aqaba Gas Terminal in Jordan, as reported by Bloomberg, citing traders who indicated that the gas will be redirected to Egypt. Egypt does not possess facilities to convert liquefied gas to its gaseous form (a process known as regasification) and previously had a floating terminal in Ain Sokhna used for gas imports before 2018. Egypt uses gas to fuel power plants and for cooling operations. Egypt largely stopped importing liquefied natural gas six years ago when the massive Zohr field boosted domestic production, turning the country into a fuel exporter. However, it currently relies on Israeli gas to meet part of its domestic demand, exporting surplus gas in the form of liquefied natural gas to Europe primarily through the Idku and Damietta liquefaction plants, which have a production capacity of 2.1 billion cubic feet per day. In January, Israeli gas supplies to Egypt exceeded pre-war levels in Gaza, rising by 15% month on month to reach around 1.15 billion cubic feet per day.

Minister of Petroleum for Egypt said by full proud in 2018: There is satisfaction from gas and no gas export. That was after tie in the new gas fields, which were discovered since 2015. As usual, they put all fields on the maximum gas rate or even the gas peak! so no surprise from seeing sharp gas decline rate was observed after 2021 and now most or all the imported gas from Israel entered into our market to cover the consumption, so the yearly gas exporting in 2023 was 32% only from 2022 gas exporting beside cut the electricity several hours daily! as you see here: The old fields before discovering the new gas fields in 2015 was able to cover our consumption till 2018 + gas exporting instead of destroying our new gas fields by stupid management!!

Qatar, a country with fewer residents than Mississippi, is set to produce an amount of LNG equivalent to about 7.25 million barrels of oil per day. Most of this will be exported, putting them on par with Saudi Arabia in oil shipments. By the end of the decade, Qatar is expected to control around 25% of the global liquefied natural gas market. This production boost could increase their annual revenue by approximately $31 billion. Qatar plans to invest this money, via its sovereign wealth fund, in diverse global industries like healthcare or technology. Qatar is playing the long game!

And so it begins… this is why they are annihilating Gaza. To make way for the Ben Gurion Canal and control Gaza gas & Oil.

As I showed from many pervious posts: Egypt still has undeveloped gas reserves around 60% from the total new gas discovery since 2015. The priority now to develop this reserve instead of going to explore new concessions with risk finding or not finding economic gas to develop it beside the long time to put this gas on the stream. As you see there, Egypt is in critical situation due to the remaining developed gas reserve end of 2023 = 14 TCF only. The developed remaining gas reserve end of 2023 will cover only Egypt average gas consumption rate 3 years as maximum period. Why I am saying: Maximum 3 years only? 1- Egypt never sustained any gas production rate or building gas plateau performance, so continuing gas decline rate as 13% per year will let Egypt mid of this year entering all the imported gas from Israel into the market to try covering the consumption rate (stop the LNG gas exporting). Even that will not enough as shown from previous posts. So, Egypt will import more gas as NG from Israel (if Israel can export more) or LNG (higher cost) from others! 2- Beside above, I assumed no increasing in the Gas Consumption rate. The Fast Track Solution: ASAP develop the undeveloped gas fields (starts by easier projects).