Egypt's Nat Gas Crisis Reckoning Will Come To EMRA24 Jun 2024 16:42
Susan Noor
Jun 22, 2024
The crisis of low natural gas production has put the management of the Egyptian Natural Gas Holding Company (EGAS) under scrutiny, with various stakeholders pointing the finger and trying to deflect responsibility for the company's failures to fulfill its core mission.
EGAS' primary mission is to produce sufficient quantities of natural gas, positioning the country as one of the most important natural gas markets on the regional and global stage, however, a serious failure occurred, culminating in Egypt's return to the role of importer of LNG cargoes and the leasing of a floating gas terminal at Sokhna Port.
The most important and sensitive tasks entrusted to EGAS include issuing bids, signing concession agreements, monitoring and analyzing the results of drilling and well maintenance, and implementing modern technological applications, and it is unfortunate that there is a clear failure within the exploration sector in terms of follow-up and motivation of foreign companies to drill exploration wells in deep waters off the coast of Egypt, which led to a decline in the exploration activities of foreign companies in shallow water only, where the discovered reserves do not exceed one trillion cubic feet of gas.
EGAS and its successive management teams have failed to increase annual production to effectively manage the supply and demand balance, and this failure is also the responsibility of the project management team, which has been tasked with improving cost-effectiveness and timely implementation of production and well maintenance activities.
As a result, Egypt is currently facing the challenge of increasing its proven natural gas reserves to meet all domestic market obligations and export commitments, and this situation has opened the door to demands for an investigation into EGAS' failures and the need to hold individuals accountable for the organization's inability to achieve its core mission.
The crisis has exposed deficiencies in EGAS' management and decision-making processes, and the lack of effective oversight and accountability mechanisms, and it has become clear that EGAS' leadership must address these systemic issues to restore consumer confidence and ensure the country's energy security.
However, it is time for a thorough and transparent investigation into EGAS' failures, with the aim of identifying root causes, holding accountable those responsible, and implementing the necessary reforms
https://www.linkedin.com/posts/suzan-nour-67a196b8_
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and it is a crisis, electrical production will only get worse for Egypt - how's the electrical grid connection coming along at Sukari Mr Horgan - almost ready to turn on?
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