Egypt Daily News – Egypt raises the purchase price of natural gas from “Cheiron Petroleum” after allowing it to export
Egypt has increased the purchase price of newly extracted natural gas from the fields of the English company “Cheiron Petroleum” in the Western Desert by 61%, according to a government official who spoke to “Asharq.”
The official, who requested anonymity, added that the new price is $4.25 per million British thermal units, up from an average of $2.65 in previous agreements.
This move comes after the Egyptian government allowed “Cheiron Petroleum,” owned by Egyptian billionaire Salah Diab, to export about 550,000 barrels of crude oil last January in exchange for part of its overdue receivables from the Egyptian General Petroleum Corporation. This is part of a government plan to encourage companies to accelerate exploration and production operations. The Egyptian Ministry of Petroleum did not respond to a request for comment.
The government official revealed that the increase in gas purchase prices from “Cheiron Petroleum” will apply to three new concession areas in the Western Desert.
“Cheiron Petroleum” has concession areas and oil fields in the Western Desert and the Gulf of Suez, with a production of approximately 140,000 barrels of crude oil per day.
Egypt’s gas production
Egypt aims to return as a natural gas exporter by 2027 after unexpectedly becoming a net importer due to growing domestic demand and declining investments in fields, partly due to government delays in paying foreign companies’ dues.
The country’s natural gas production has dropped to 4.35 billion cubic feet per day, while daily demand stands at about 6.2 billion cubic feet, with this gap widening significantly during the summer. The Egyptian government plans to import between 155 and 160 shipments of liquefied natural gas this year to bridge the gap between actual market needs and domestic production.
