Egypt’s FY20 oil products, gas consumption rises to 92.4mn tonnes

Egypt’s consumption of oil products and natural gas rose to 92.4 million tonnes during the 2019/2020 financial year from 89.7 million tonnes during the 2018/2019 financial year, an government source said on Monday.

Egypt’s consumption of natural gas climbed from 48 million tonnes during the financial year 2018/2019 to 51.1 million tonnes this year, the source added.

this year’s estimated consumption increase due to the needs of the electricity sector for petroleum products and natural gas, he said

The annual increase in the consumption of petroleum products such as petrol, diesel, jet fuel, and gas locally accounted for about 4 percent.

While the liquefied petroleum gas (LPG) cylinders consumption was reduced by about 2 percent annually due to the expansion of delivering natural gas to residential units, he said.

“The Petroleum Ministry succeeded in reducing the deficit between domestic production and consumption of petrol by 3.8percent during the current financial year, bringing the total domestic production to about 7.6 million tonnes annually, compared with 8 million tonnes consumption,” the source said.

The production of domestic diesel will increase to about 14.7 million tonnes annually during the current financial year, compared to 16.8 million tonnes consumption, which reduces the deficit to about 12.5 percent.

The sources pointed out that the rate of production of the LPG will increase to 2.6 million tonnes per year compared to about 3.9 million tonnes of domestic consumption, to reduce the deficit to 33.3 percent.

The production of jet fuel domestically increased to 4.1 million tonnes annually, and consumption at about 670,000 tonnes, which achieves an exportable surplus of 3.43 million tonnes during the current financial year.

Egypt has achieved self-sufficiency of natural gas locally and began to export shipments of liquefied natural gas to international markets, in addition to providing the needs of Jordan.

The increase in domestic production of petroleum products is a result of the exploitation of the capacities in Egyptian refiners, and the import of crude oil instead of derivatives, which saves millions of dollars to the state treasury.

The aim is to achieve self-sufficiency of fuel and petroleum products, coinciding with the completion and implementation of all new expansions of Egyptian refineries within the 2022/2023 financial year .

Egypt has about eight crude oil refineries with a production capacity of 38 million tonnes, of which about 25 million tonnes are used annually.

Source: Daily News Egypt