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Al-Ahram Weekly 20 - 26 April 2000 Issue No. 478 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 20 - 26 April 2000 Issue No. 478
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Heritage Features Travel Living Sports Profile People Time Out Chronicles Cartoons Letters Masks off gas
By Niveen WahishExporting natural gas to Israel is in the limelight once more following last week's meeting between Sameh Fahmi, minister of petroleum, and Israel's infrastructure minister, Eliyahu Suissa. Following the meeting it was announced that their respective governments would actively encourage companies from both countries to enter into negotiations over the sale of natural gas to Israeli buyers. Provided negotiations are fruitful, the two governments will work to solve any outstanding issues to ensure that the export agreements are completed.
Though foreign companies with concessions in Egypt have always had the right to export from their quotas without restriction they have been waiting for an official go-ahead before exporting to Israel.
"We are ready to sell our gas to any buyer at the right time and right commercial terms after the approval of the Egyptian government," said Samir Abdel-Moaty, exploration manager at BP Amoco's Egypt Gas Business Unit.
Before arriving in Cairo, the Israeli infrastructure minister was reported as saying that Israel need not count on Egypt as its primary gas provider following the discovery of reserves of off-shore gas at Ashkelon. He added, though, that it would be in Israel's best interest if the pipeline Egypt hopes to extend to Turkey crossed Israeli land.
The possibility of exporting natural gas to Israel, or any other country, is currently hampered by the lack of the necessary infrastructure, either a pipeline or a liquefying facility. But last week the Egyptian minister of petroleum announced that the Egyptian General Petroleum Corporation (EGPC) had signed a principle agreement with British Gas and Edison, the Italian petroleum company, to establish the first Egyptian natural gas liquefaction plant by 2004. BP Amoco has also signed a similar agreement.
According to Abdel-Moaty, Egypt has the capacity to accommodate eight production lines. BP Amoco's plant, like that of British Gas and Edison, will have two lines, leaving four to be built.
Recent explorations have revealed that Egypt's natural gas reserves stand at 42 trillion cubic feet (tcf), while potential resources are estimated at over 100 tcf.
