LNG market in Egypt is projected to surpass 4.5 MMT by 2025, due to rising demand from power and industrial sectors in the country, says TechSci Research report.
Production of dry natural gas in Egypt declined at a CAGR of 7.17% during 2011-2015. Thus, imports of LNG in the country increased during 2011-2015, and this trend is further anticipated to continue during the forecast period as well.
Ministry of Electricity announced
capacity addition of 2.25 GW in August 2016, with an investment of USD2.2 billion. Therefore, growing demand for electricity and rising application in various industries is expected to boost demand for LNG in Egypt during 2016-2025.
In 2015, Greater Cairo Region dominated LNG market in Egypt owing to growing demand for power and rapid industrialization in the region.
Moreover, this region receives LNG supply from Ain-Sokhna (Offshore)-BW Singapore and Ain-Sokhna (Offshore)-Hoegh Gallant terminals.
Power sector garnered highest market share in Egypt LNG market over the past few years, and the sector is anticipated to continue dominate the market during the forecast period as well. Expanding residential and commercial sectors across the country are the major factors fueling demand for LNG from the power sector in Egypt.
"Domestic production of natural gas in Egypt declined significantly over the past few years. However, demand for LNG is continuously rising, thereby widening LNG demand-supply gap in Egypt. Thus, import of LNG increased in the country during the same period,"said Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"Cost competitiveness of LNG imported against locally produced natural gas, expanding storage capacities and installation of floating storage regasification unit (FSRU), coupled with favorable government policies and easy availability of LNG from Qatar, Algeria
and Equatorial Guinea are projected to further boost import of LNG in Egypt during 2016-2025", he added.