15 - 21 February 2001
Issue No.521
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Al-Ahram Weekly On-line 15 - 21 February 2001 Issue No.521 |
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No Egyptian gas for Israel
During the last two weeks, I have been following with great amazement the many reports alleging that Egypt will supply Israel with natural gas starting next year under a $3 billion-deal that is to continue until at least 2012. For me, these reports are news. Since taking up the oil portfolio in October 2000, no deal has been concluded to supply Israel with Egyptian natural gas.
Minister of Petroleum, Sameh Fahmi, speaking before parliament, and in interview with Al-Ahram Weekly's Gamal Essam El-Din.
The only natural gas agreement signed during my tenure was concluded a short time ago between Egypt, on the one hand, and Syria, Lebanon and Jordan, on the other. This deal will make Egypt a major supplier of natural gas in the region as it forms the basis of a plan for concluding further arrangements with Turkey and some other friendly countries.
I want to emphasise that Egypt should hasten to develop its vast natural gas reserves for export purposes as we face competition from neighbouring countries such as Saudi Arabia and Qatar.
In this context, our recent achievements include agreements with three foreign companies to amend the gas pricing provisions stipulated in the concession agreement which is enshrined in Law No 6 of 1988 governing the exploration and exploitation of natural gas. With these pricing modifications, an additional $150 million went to state coffers during the last seven months.
The afore-mentioned agreements are part of the Oil Ministry's strategy to increase the inflow of foreign exchange so as to improve Egypt's balance of payments. In the second half of last year, the natural gas sector contributed $250 million to the state budget, compared to $250 million for the whole of 1999.
Additional good news is that Egypt's proven natural gas reserves increased in 2000 from 40 trillion cubic feet to 51 trillion cubic feet.
In light of the fact that Egypt's consumption of natural gas was just six trillion cubic feet annually for the last quarter century, these reserves represent massive potential.
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