Egypt's Energy Sector: Natural gas discoveries in 2018 a key addition to fuel sources

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02:48

Energy is one of the most promising sectors in Egypt. It has been a burden on the state budget because of the cost of importing and maintaining fuel subsidies, as well as electricity generation. The Egyptian government has worked hard in 2018 to improve the production output in this critical sector. CGTN's Yasser Hakim has the details.

The energy sector has been the most successful in Egypt's economy in 2018. The main boost has come from the natural gas discoveries that have transformed Egypt from importing about $2.5billion of LNG a year, to become self-sufficient in natural gas.

In 2018, the government continued its five-year plan to gradually cut subsidies on fuel and electricity to reduce expenditure and balance its budget deficit. The revenue has also been used to pay off the $6 billion debt owed to the foreign oil companies. This has paved the way for more investments in oil exploration in the Red Sea and the Mediterranean.

HUSSEIN EL GHAZZAWY MEMBER, PETROLEUM CHAMBER UNION "We have new technology to be implemented to produce more in the Gulf of Suez. Egypt is doing seismic test for the Red Sea and now we will be able to open new concessions for exploration in the Red Sea. We have the Gulf of Suez for oil. In the Mediterranean Zohr is a good start and East Mediterranean which is called the Nile Delta basin, north of Egypt."

More oil and Gas discoveries will also provide enough energy needed for the growing number of industries and foreign investments being poured into the country.

YASSER HAKIM CAIRO, EGYPT "Experts say 2019 could see further expansion and revenue from the energy sector as Egypt is expected to become a major exporter of natural gas in the region. Yasser Hakim, CGTN, Cairo."