Maritime Ports

Egypt’s natural gas sector is expanding rapidly, having more than doubled between the year’s 1999 and 2003. In Fact, many senior economists predict that Egypt is currently on course to becoming the world’s sixth largest natural gas exporter by the year 2006.

In light of major recent gas discoveries, the Egyptian Government released a revised estimate of its proven natural gas reserves, placing the figure at 62 trillion cubic feet. Furthermore, it is estimated that potential gas reserves may amount to 120 trillion cubic feet. This substantial rise in natural gas has spurred the government’s drive to explore its export potentials.

In July 2003, Egypt concluded its first export deal of natural gas to Jordan via pipeline that extends from El-Arish to Aqaba, and is currently negotiating export deals with Syria, Lebanon, Turkey and Israel via extensions of that same pipeline. The government predicts that export revenues from the sale of natural gas to Jordan alone could total around US$ 100 million in 2004. Meanwhile, exports of natural gas to Europe and the US are projected to bring in annual revenues of US$ 600 million by fiscal 2007.

Alternatively, Egypt could export its natural gas through the construction of liquefied natural gas (LNG) plants. Currently, two such LNG projects are under construction. Egypt asserted that around 70% of the work on the Damietta liquefied natural gas (LNG) plant, owned by the Spanish Egyptian Gas Company ( a consortium headed by the Spanish power giant, Union Fenosa ) has been concluded. Subsequently, exports of natural gas to Spain are due to commence in late 2004. The second LNG export project ( “ Egyptian LNG”), at Idku, is to be constructed by a UK company, the BG group, in partnership with Petronas, a Malaysian firm. About 45% of the work on this plant has been completed and exports are due commence to France in September 2005 and to the Us and Italy.