EGAS intends to sign 7 deals with $690m investments in FY20/21

The Egyptian Natural Gas Holding Company (EGAS) seeks to ink seven new agreements with total investments of $690 million during fiscal year 2020/2021, the company’s chairman Osama El-Bakly said.

The company also plans to drill 10 wells in the Nile Delta and the Mediterranean Sea with combined investments of $328 million as well as signatures bonuses of $16 million during the exploration period, El-Bakly added in a statement released by the Ministry of Petroleum on Thursday.

The plans also include signing four development contracts with signature bonuses of $20 million, establishing two new projects, and resuming the implementation of another for a total of four wells, along with 38 development wells with an initial production of about 537 million cubic feet per day.

This will raise the average output to about 7.5 billion cubic feet of gas per day and more than 100,000 barrels of condensates.

El-Bakly further revealed that more than 1.2 million residential units in different governorates are expected to be supplied with natural gas with an investment cost of EGP 4.7 billion during FY20/21.

In addition, the plan involves supplying 100 factories and 1,000 commercial customers with natural gas, converting 50,000 cars to run on natural gas, and building 36 new natural gas fuelling stations.