- Egypt plans to lease a German floating gas liquefaction unit to address declining domestic gas production and meet rising demands.
- The country is working to ramp up production at the Zohr offshore gas field, with operator Eni resuming drilling to boost output.
Egypt has been struggling with declining domestic gas production. To address this issue, it plans to lease a German floating gas liquefaction unit. The Egyptian Petroleum Ministry shared this information in a statement on Tuesday.
Egypt is the most populous Arab country. It has been trying to increase production at its Zohr offshore gas field, one of the largest in the Mediterranean. The government needs more gas to meet rising domestic demand.
Zohr’s operator, Eni, resumed drilling last month. The field’s output dropped to 1.9 billion cubic feet per day in early 2024, far below the peak production reached in 2019.
Egypt hopes to increase production to meet its needs. The drop in output has led the country to explore new solutions, one of which is leasing a floating gas liquefaction unit from Germany.
The floating unit is located at the Baltic Sea terminal of Mukran, Germany. Egypt’s Petroleum Minister Karim Badawi and Philipp Steinberg, Germany’s director-general for economic stabilization, energy security, gas, and hydrogen infrastructure, discussed the leasing plans. The two officials met during the CERAWeek energy conference held in Houston, Texas.
They discussed leasing the unit and other energy-related matters. One topic was Germany’s potential purchase of Cypriot gas. This gas would flow through Egypt’s liquefaction facilities before being re-exported to Europe. This discussion shows the growing importance of the Eastern Mediterranean as an energy hub.
Egypt and Cyprus also signed agreements last month. These agreements allow gas export from Cyprus’s offshore fields through Egypt. This partnership helps strengthen the region’s energy role and supports the European energy market. Egypt and Cyprus are working together to make the Eastern Mediterranean a more critical source of energy.
Egypt plans to send a delegation to Berlin this month. The delegation will work to finalise the details of the leasing agreement for the gas liquefaction unit. The move is part of Egypt’s broader strategy to secure energy for its growing population and support its role in regional energy markets.
Through these efforts, Egypt is trying to address issues in the energy sector. Leasing the floating liquefaction unit will help Egypt meet its immediate gas needs. By working with Germany and Cyprus, Egypt aims to become a key player in the Eastern Mediterranean energy sector.