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Does Egypt have what it takes to become a top LNG exporter?

By Loza Seleshie
Posted on Wednesday, 30 June 2021 11:11

A plant's gas tanks are seen near the Gulf of Suez at the desert road outside Cairo, Egypt September 1, 2020. Picture taken September 1, 2020. REUTERS/Amr Abdallah Dalsh

Egypt is expected to become one of top global exporters of liquefied natural gas by the end of 2021. Despite political and economic factors that constrained the sector for several years, the country woke up from its deep slumber leading to poignant discoveries just in time to meet growing global demand.

According to McKinsey’s ‘Global gas outlook to 2050’ report, gas will be the strongest-growing fossil fuel and will increase by 0.9% from 2020 to 2035.

As Africa’s second-largest producer in 2019, Egypt is expected to become one of the world’s leading 10 exporters of LNG (liquefied natural gas) by the end of this year. Its transnational pipelines are also a major asset, connecting the country to Jordan, Israel and stretching out to Europe. What has pushed this boom? How is Egypt managing its export infrastructure?

Turning point

Egypt has come a long way. Natural gas production had been steadily growing – reaching 62.7bn cubic meters (Bcm) by 2009.