Cairo: Egyptian President Abdul Fattah Al Sissi on Wednesday launched the first production stage of a giant natural gasfield, calling it a “dream coming true”.
The Zuhr field, discovered by Italian energy firm Eni in 2015, has estimated gas reserves of 30 billion cubic feet. The largest filed in the Mediterranean Sea, Zuhr began a test production of around 350 million cubic feet per day (cfd) last month. “This field will produce gas in figures that were previously a dream and are now a reality,” Al Sissi said in televised remarks. He added that a recent demarcation of maritime border between Egypt and Cyprus allowed for the Zuhr discovery.
“Completing the demarcation of borders with Cyprus was a motive for foreign companies to cooperate with Egypt in exploring for this wealth,” he added, referring to Eni.
Zuhr is seen as a major stride in the country’s efforts to achieve self-sufficiency in the liquefied natural gas (LNG) supply to meet growing local needs.
The field output will reach 2.7 billion cfd by the end of 2019 when Egypt plans to achieve LNG self-sufficiency, according to Oil Minister Tareq Al Molla.
“This will represent about 50 per cent of Egypt’s gas production,” he told the ceremony.
The current production from the field will save Egypt’s public treasury some 720 million dollars in annual gas imports, Al Molla added.
The overall investment in the project amounts to 12 billion dollars, the official said.
Egypt hopes that Zuhr, located 190 kilometres off the coastal city of Port Saeed, will turn the country into a regional energy hub.
In recent years, Egypt has suffered an acute energy shortage due to a drop in local gas output and the turmoil that followed the 2011 uprising.
