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Page added on September 11, 2017
Egypt muscling in on global gas production
Baker Hughes, a GE company, announced September 9, 2017 a major subsea contract from Petrobel for phase two of the “supergiant” Zohr Gas Field situated in the Mediterranean Sea, off the Egyptian coast.
BHGE will provide project management, engineering procurement, fabrication, construction, testing and transportation of a subsea production system, and will support the installation, commissioning and start-up operations.
Lasting impact
If Zohr delivers on the promise, it would have a lasting impact on Egypt’s gas future and repayment of its $3.5 billion debt to foreign gas companies, a figure quoted by Eng. Tarek El-Molla, Egyptian Minister of Petroleum and Mineral Resources, as reported in Egypt’s state media in February 2017.
“The Zohr gas field is playing a major role in the development of Egypt’s domestic energy resources, revenue generation and economic growth,” said Eng. El-Molla, following the recent signing ceremony.
Lorenzo Simonelli, president and CEO, BHGE, said: “The Zohr Field project has the potential to meet Egypt’s growing gas demand and save the country billions of dollars that would otherwise be spent on importing gas.”
Petrobel is a joint venture between IEOC (a subsidiary of Italian company Eni in Egypt) and Egyptian General Petroleum Corporation (EGPC) and is in charge of the development of Zohr Field on behalf of PetroSherouk, a joint venture between Egyptian Natural Gas Holding Company (EGAS) and IEOC.
Plenty in reserves
Zohr Gas field is located within the 3,752km² Shorouk Block, in the Egyptian Exclusive Economic Zone (EEZ), more than 150km from the coast. Eni was granted approval for the Zohr Development Lease by the Egyptian Natural Gas Holding Company (EGAS) in February 2016.
According to the Middle East Institute (MEI), a Washington-based institution dedicated to the study of the Middle East, the deep-water field is expected to hold approximately 30 trillion cubic feet of lean gas, making it the biggest gas discovery in the Egyptian Mediterranean Sea and, potentially, the 20th largest in the world.
MEI said that, until the Zohr discovery, Egypt had an estimated 64.8 trillion cft of natural gas reserves, making it a medium-sized player in the natural gas market. It estimated total investment costs for Zohr at $7bn, although as much as a $12bn figure was also reported in media reports.
6 Comments on "Egypt muscling in on global gas production"
!Lucifer! on Mon, 11th Sep 2017 9:36 pm
Egypt will be a wasteland very soon just like the rest of the MENA nations. No amount of gas will change that, but then again the gas reserves might help slow down the suffering that’s to come.
Apneaman on Mon, 11th Sep 2017 10:39 pm
The last time Egypt had any muscle was around 1200 BC. The Pharos drove muscle war chariots.
deadlykillerbeaz on Mon, 11th Sep 2017 11:45 pm
64.8 billion Mcf
2.95 USD MMbtu
https://www.bloomberg.com/energy
What are Ccf, Mcf, Btu, and therms? How do I convert natural gas prices in dollars per Ccf or Mcf to dollars per Btu or therm?
Btu—British thermal unit(s)
Ccf—the volume of 100 cubic feet (cf)
M—one thousand (1,000)
MM—one million (1,000,000)
Mcf—the volume of 1,000 cubic feet
MMBtu—1,000,000 British thermal units
Therm—One therm equals 100,000 Btu, or 0.10 MMBtu
Natural gas may be priced in units of dollars per therm or dollars per cubic feet. The heat content of natural gas per physical unit (such as per cubic foot in the United States) is needed to convert these prices from one price basis to another. In 2016, the U.S. annual average heat content of natural gas for the residential, commercial, industrial, and transportation sectors was about 1,037 Btu per cubic foot. Therefore, 100 cubic feet (Ccf) of natural gas equals 103,700 Btu or 1.037 therms. One thousand cubic feet (Mcf) of natural gas equals 1.037 million Btu (MMBtu), 10.37 therms.
You can convert natural gas prices from one price basis to another with these formulas (assuming a heat content of natural gas of 1,037 Btu per cubic foot):
$ per Ccf divided by 1.037 equals $ per therm
$ per therm multiplied by 1.037 equals $ per Ccf
$ per Mcf divided by 1.037 equals $ per MMBtu
$ per Mcf divided by 10.37 equals $ per therm
$ per MMBtu multiplied by 1.037 equals $ per Mcf
$ per therm multiplied by 10.37 equals $ per Mcf
https://www.eia.gov/tools/faqs/faq.php?id=45&t=8
2.95×1.037=3.05915 USD per thousand cubic feet
3.05915×64,800,000,000 Mcf=198,232,920,000 USD.
A 7,000,000,000 to 12,000,000,000 dollar investment can yield a gain of 150 percent, maybe even 25 times or more, one can conclude the dollars invested is a sound investment.
Spend 7 billion, collect 198 billion.
Happy trails
Cloggie on Wed, 13th Sep 2017 3:09 am
Solar panel prices will continue to drop to price levels where the cost of the support structure (panel) will outweigh the cost of the active layer. Think of $100 consumer price per panel of 100 x 160 cm by 2022.
https://cleantechnica.com/2016/12/02/dramatic-solar-price-reductions-will-continue-fall/
Under these circumstances Egypt could move away from oil and gas by using its former useless and abundant desert space for some major league solar installations and even begin to consider hydrogen or other energy storage fluids from this base for export purposes and become Saudi-Arabia light, where Europe and/or China will provide the capital for installation and Egypt cheap labor for maintenance. Egypt can produce electricity/hydrogen much cheaper than Europe thanks to superior solar irradiation conditions.
Although it would be unwise for Europe to make itself dependent too much on energy from the Sahara, like in the proposed Desertec scheme…
https://en.wikipedia.org/wiki/Desertec
…some dependence (up to 25%) could be acceptable and en passant help develop North-Africa.
DerHundistlos on Thu, 14th Sep 2017 6:14 pm
Egypt Redemption yom Kippur:
https://www.youtube.com/watch?v=7i_66W-lqPU&list=LLylkJG7f4NC3Zwym1hH4sNw&index=405
Davy on Thu, 14th Sep 2017 6:30 pm
Aphrodite’s Child – Loud Loud Loud
http://tinyurl.com/yd3jzodl