Egypt plans to resume gas production next summer, Prime Minister Mustafa Madbouly said. Earlier, the country banned exports and began to reserve LNG itself, which became one of the reasons for high gas prices in Europe.
Head of the Egyptian government Mustafa Madbouly He said that gas production in the country will be restored in the summer of 2025 and the government will settle the debt with mining companies.
Sources told Reuters in March that the government had allocated up to $1.5 billion to pay foreign oil and gas companies operating in the country.
“The debt arose during a long foreign exchange shortage that has since eased.” – the agency reports.
The production decline coincided with the heat, which required even larger volumes of gas. As a result, Egypt not only halted exports but also began booking LNG to avoid power outages.
“Egypt is seeking to buy 20 cargoes of liquefied natural gas from October, and for the first time in many years, before winter. This has traders concerned about the balance of the market in Europe, as increased demand in other countries could lead to less fuel reaching their shores.” — reported Bloomberg.
The Egyptian prime minister also promised that there would be no more power cuts in the country. He said that Cairo has allocated 2.5 billion dollars for this purpose. The authorities also plan to put the first stage of the line between Egypt and Saudi Arabia into operation by the summer of 2025.
