KUWAIT CITY (AFX) - Egypt aims to double its natural gas exports within the next five to six years and substantially boost reserves, Petroleum Minister Sameh Fahmy told the Middle East Economic Survey (MEES).
The increase will be done through the expansion of the two Liquefied Natural Gas (LNG) plants and boosting sales through the Arab Gas Pipeline (AGP), Fahmy said in an interview to appear in the publication tomorrow.
'We are now exporting 17 billion cubic meters a year and we have plans from our partners to expand the LNG plants. We are contemplating at least two additional trains in Idku and one in Damietta,' he said.
Egypt's annual production of natural gas stands at around 55.2 bln cubic meters.
Cairo was also talking to Syria, Turkey, Romania and Bulgaria about integrating Egyptian gas exports into the planned 30 bln cubic meters a year Nabucco pipeline and on to European customers, he said.
Partners behind the planned 5.5 bln usd, 3,300 kilometre pipeline expect to make a final investment decision by the end of 2007 with construction completed in 2012, the minister said.
Gas exports earned Egypt 2.2 bln usd last year and revenues are estimated to go up to 3.3 bln usd in 2006, Fahmy said.
Egyptian government is reassessing its gas sector strategy, formulated in 2000, in order to 'maximize returns from gas exports and boost exploration,' he said.
Cairo has signed lucrative supply contracts with Spain, France, Israel, Jordan as well as the Palestinian Authority.
Regarding reserves, currently estimated at 1.87 trln cubic metres, Fahmy said Egypt expected to be able to add a further 2.8-3.4 trln cubic metres to proven reserves in the long run.
'We expect to add 30 trillion cubic feet to proven and developed reserves in the next 5-6 years,' he said.
The new gas reserves are expected to be found in the Western Desert, near the Libyan border, 'where we have some discoveries already there,' and Upper Egypt, the minister said. newsdesk@afxnews.com afp/cml COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited