Egypt’s ambitions to become a regional gas hub are dwindling due to a number of factors, including declining production, rising domestic demand, and competition from other gas-producing countries.
Egypt’s gas production peaked in 2022 at over 65 billion cubic meters (bcm), but is forecast to decline thereafter without further efforts to boost production. This is due to a number of factors, including natural declines in existing fields and the high cost of developing new fields.
At the same time, domestic demand for gas is rising. Egypt’s population is growing rapidly, and the country is increasingly using gas for power generation and industrial purposes. This is putting a strain on Egypt’s gas supplies, and is making it difficult for the country to export gas to other countries.
Egypt is also facing competition from other gas-producing countries in the region, such as Qatar and Algeria. These countries have large gas reserves and are investing heavily in their gas production and export infrastructure. This is making it more difficult for Egypt to compete in the regional gas market.
Despite these challenges, Egypt is still trying to become a regional gas hub. The country has invested heavily in its gas infrastructure, including building new LNG export terminals. Egypt is also working to attract foreign investment in its gas sector.
However, it is unclear whether Egypt will be able to achieve its goal of becoming a regional gas hub. The country faces a number of challenges, including declining production, rising domestic demand, and competition from other gas-producing countries.
There are a number of things that Egypt could do to improve its chances of becoming a regional gas hub. These include:
Investing in new gas exploration and development projects
Reducing domestic gas consumption by improving energy efficiency and switching to other energy sources, such as renewables
Developing a competitive gas market that attracts foreign investment
It is important to note that Egypt is not the only country with ambitions to become a regional gas hub. Other countries in the region, such as Qatar and Algeria, are also investing heavily in their gas sectors. It remains to be seen which country will be able to emerge as the dominant gas hub in the region.