Egypt: Zohr Ramp-Up Eroding Import Burden

摘要

We expect the second phase of Zohr and the ramp-up to maximum production capacity over the next two years will be transformative for Egypt. Increasing domestic production of gas will alleviate pressure on the Egyptian government's budget deficit and soften the requirement for LNG imports (see 'New Gas Projects To Support Economic Growth', March 6). The significant production upside from Zohr, and from several other offshore fields over the next five years, will reduce Egypt's gas import burden and could facilitate a consistent restart of LNG exports from as soon as the end of 2018. As production exceeds domestic demand, we see the potential for gas to be exported via LNG to European and Middle Eastern markets, where LNG demand is expected to rise over the long-term (LNG Demand Growth To Continue Unabated', March 6).