The Clap:

In May, Egypt’s natural gas production fell to 4.3 billion cubic meters, reaching its lowest point in more than six years, Asharq Business writes. Remember, Egypt became a net importer of natural gas in recent months following a significant drop in production.

Forecasts: 

The new figures are indicative of a future dependency on LNG  imports, Bloomberg notes. The decline in production coincides with a 12% YoY increase in daily electricity use.

Remember: 

In response to a decline in gas supply brought on by the conflict in Gaza, the government reduced gas supplies to energy-intensive industries by up to 30% since November, mostly affecting fertilizer, iron, and aluminum companies. The reduction in domestic gas supply has led companies to shutter their doors two times last month, leading to multi-million EGP losses for those affected on a daily basis. 

To solve the problem:

Egypt earlier fully awarded 20 cargoes in its biggest LNG tender in years in a bid to meet local demand amid heightened demand during summer months. The shipments will reportedly take off between USD 880-910 million from the state’s purse.

In other energy news:

British oil giant BP is set to drill four additional wells — two in the Raven gas field at its North Alexandria concession with an investment of around USD 200 million, and two in its Giza and Fayoum fields for a total of USD 120 million. The company will up its total gas production from Raven by 200 million cubic feet, while also adding 8,000 barrels of condensate from the zone by the third quarter of fiscal year 2024-25.