Prominent government sources estimated that imports of crude oil and petroleum products during the fiscal year (FY) 2019/20 to decline by 21.8% to 22.2 million tonnes of crude oil, compared to 28.4 million tonnes, in previous FY.
Consequently, imports cost will fall to $13.1bn down from $16.1bn in the previous fiscal year, the sources told Daily News Egypt.
The sources attributed the decline to the new fields that have been linked to production lines.
Egypt’s consumption of petroleum products and gas is forecasted to increase to 92.4 million tonnes in FY2019/20, up from 89.7 million tonnes in FY2018/19. Natural gas consumption will register at 51.1 million tonnes in the current FY, compared to 48 million tonnes last year, the sources revealed.
The forecasted increase in consumption would cover the electricity sector’s needs for petroleum products and natural gas.
Furthermore, plenty of oil and gas projects are expected to be completed in the current FY, including; El Wastani Petroleum Company’s Balsam field; third phase of Pharaonic Petroleum Company’s Ras El Bar fields; and Agiba Petroleum Company’s Maliha gas processing plant.
“The strategy includes refining, processing, and transportation projects, such as the construction of the initial distillation unit at state-owned Middle East Oil Refinery Co.’s (Midor) refinery, vapour recovery unit at Assuit Refinery (vru), and the replacement and renewal projects of the crude oil line from Mostorod to Tanta,” the sources added.
As for the project relating to the production of crude oil, they include the Mazut hydrogen cracking complex at the Egyptian Refining Company (ERC) in Cairo’s Mostorod area, and Port Said gas pipeline.
Furthermore, the sources revealed that the strategy also includes the completion of the Nubaria – Metnama Gas Pipeline, and the establishment of the Gamasa – Fenosa pipeline in Damietta Governorate.
Petrochemical projects are related to the production of polypropylene and styrene citrine in Alexandria.
Earlier, government sources told Daily News Egypt that the Ministry of Petroleum aims to export 12 million tonnes of natural gas during FY 2019/20, worth $2bn, up from $580m during FY 2018/19, according to government sources.