UK's BG sees no effect on Egypt LNG exports regardless of regional shortagesPosted by Mckee McConnell on February 1st, 2021 The UK's BG Team anticipates the Egyptian government to continue to enable LNG exports from the nation regardless of the present gas scarcities on the domestic market, BG CEO Chris Finlayson claimed Thursday. Egypt is a crucial market for BG as well as a fall in production in the nation in the first quarter pushed the firm's overall output down by 3%. " The Egyptian government satisfied its commitments in the first quarter in terms of volumes as well as payment record," Finlayson stated. " We anticipate agreements to be recognized in future." Egypt has actually been struggling with gas shortages since the overthrow of previous leader Hosni Mubarak in very early 2011. It has actually currently halted gas exports to Israel as well as closed down one of its 2 LNG plants-- the SEGAS LNG plant at Damietta-- due to a lack of feedstock. Finlayson said he had no discuss Damietta as it does not have any rate of interest in the job, however he claimed its Egyptian LNG plant at Idku, near Alexandria, continues to operate as regular. " Egyptian LNG continues to operate and also to export, as well as in Q1, we exported 10 cargoes from Idku, exactly in line with our plan," he stated. ' INCREASED DOMESTIC NEED' Finlayson stated output from BG's West Delta Deep Marine job in Egypt was normally split 50-50 in between the local market and LNG for exports. " West Delta Deep provides the residential market and LNG in roughly equal quantities relying on seasonality," he claimed. " There is some seasonal swing permitted within the contracts, however the federal government has made it clear it plans to satisfy its obligations." Finlayson did acknowledge there can be "obstacles" as summer techniques due to enhanced domestic need for gas. BG is also hugging watch on political growths in the country, Finlayson said. " We share the concerns on the macroeconomic, political, and also gas need agendas-- we see them extremely closely," he stated. "The environment in Egypt stays difficult." Despite that, Finlayson stated the company's present result in Egypt remained in line with assumptions. " bis hexamethylene triamine penta methylene phosphonic acid lowered degree of manufacturing in Egypt-- well, we have actually had no additional shocks [since late 2012] Egypt has actually been producing exactly in accordance with what we prepared for at the end of in 2015," he stated. He added that BG was moving forward with exploration plans in the hope of inducing brand-new volumes from Egypt in 2014.Like it? Share it! More by this author |