A lose-lose situation: Egyptian suspension of gas supplies to Jordan and leads to 75% decline in exports
Egyptian exports of natural gas and derivatives declined by approximately 75% during June to $19m, said a statement issued by the cabinet’s Information and Decision Support Centre (IDSC).
Egypt’s export rates for natural gas dropped dramatically resulting from the suspension of 1.9m cubic feet in gas supplies daily to the Damietta and ADCO factories for liquefaction and export. The significant fall, which compares to $76m for the same month in 2013, is due to low production within Egypt, said a senior official at Egyptian Natural Gas Holding Company (EGAS).
The reason behind the gas export shortfall is related to a decrease in oil field production to 4.6bn cubic feet of gas daily compared to approximately 5.7bn last year, the official said.
IDSC explained that natural gas production dropped by 16.12% from 2013 rates.
Domestic natural gas consumption increased during June by 11.45%, recording 2.787m tonnes compared to 2,250m during June 2013 as a result of a high consumption rates in power plants, homes, and cars.
The value of Egyptian exports for crude oil and petroleum products during June rose by 26.7% to $545m compared to $430m in June 2013, according to a statement issued by the IDSC.
Crude oil, condensate, and butane gas production declined during June by 2.1% to 2.861m tonnes compared to 2.922m for the same period in 2013. Domestic consumption of petroleum products increased by 12.4% to 3.339m tonnes compared to 2.971 tonnes in June 2013.