Another 100 mn cubic feet per day of gas production to be added in July with West Delta addition

Phase 11 of the West Delta Deep Marine concession is set to go live next month, bringing an additional — and very much needed — 100 mn cubic feet per day (mcf/d) of natural gas, an unnamed government source told Al Arabiya Business. Production will begin with two wells — Sparrow with 60 mcf/d and Sinad with 40 mcf/d — while a third well is currently being fast-tracked for tie-in to the national gas grid before the end of 3Q, with an initial output of 50-60 mcf/d.

The expected quantities of gas will help meet about 1.6% of the country’s average summer demand and about 1.4% in the most energy demand-intensive periods. Egypt’s natural gas output currently stands at around 4.2 bcf/d, well below average summer demand of 6.2 bcf/d — the figure climbs to 7 bn cf/d during peak consumption months.

With theLeviathan shut-off and the risk of more energy disruptions to come, we need increases in domestic production now more than ever. Over the weekend, Tel Aviv shuttered the offshore field as well as the Karish field in the wake of military strikes on Iranian targets, taking away 800 mn cubic mcf/d from the national gas grid. Reduced gas flows from Israel not only mean an increased reliance on significantly more expensive LNG imports, but also put a significant strain on the country’s efforts to keep the lights on ahead of high-demand summer months.

BACKGROUND- Burullus Gas — a JV between Shell Egypt, EGPC, EGAS, and Petronas — is the operator of the concession. Phase 11 follows the completion of phase 10, where the three wells were added to the production map with a combined output of 160 mcf/d of gas and 2k barrels of condensate per day, the source added.

Shell alongside Petronas is investing some USD 300 mn into the 11th phase of the concession, while elsewhere it’s exiting its two Egyptian Red Sea exploration blocks, we heard in March.

AND- Eni is aiming to begin production from the Zohr 6 well before the end of the month, with initial output estimated at 40-50 mn cubic feet per day, an unnamed government source told Al Arabiya Business. The Italian energy giant is accelerating development through Petrobel — its JV with Egyptian General Petroleum Corporation — to meet rising domestic demand.