Egypt’s daily natural gas needs amount to 6.2 billion cubic feet, while current production stands at around 4.6 billion cubic feet per day.
The Egyptian government paid $1 billion of its overdue debts to foreign oil companies, which totaled $2 billion, according to a government official who spoke to Asharq Bloomberg.
The outstanding debts owed to foreign companies stood at $4.5 billion as of last March. Of this amount, $1.3 billion was paid in June, $1.2 billion in September, and $1 billion last Monday, leaving only $1 billion in remaining arrears.
Consequently, Egypt has returned to importing liquefied natural gas (LNG) after a five-year period as an exporter.
Egypt’s daily natural gas needs amount to 6.2 billion cubic feet, while current production stands at around 4.6 billion cubic feet per day.
The government aims to increase natural gas production to approximately 5 billion cubic feet per day by the end of the year.
Egypt’s efforts to settle outstanding debts to foreign oil companies come at a time when the country is striving to boost its natural gas production, which has dropped to 4.6 billion cubic feet per day—a level insufficient to meet daily domestic demand.
The Egyptian government is committed to revising development and exploration plans with foreign partners by initiating payments of overdue debts according to an agreed-upon schedule, alongside implementing incentives such as regular payments for partners’ shares to prevent future debt accumulation.
