BP Finds its Third Gas Discovery in Egypt

Increase in production of gas is expected to propel the demand for LNG globally

Egypt: BP has discovered a new gas field in the North Damietta Offshore, Egypt. The exploration well was drilled to a depth of 1,961 meters where the presence of gas was confirmed by the wireline logs, pressure data and fluid samples in high quality Pliocene sandstones. The Qattameya Shallow-1 and Salamat well is situated at 60 km North of Damietta city and 35 km to the West of Ha’py offshore facilities respectively. Furthermore, BP has completed its equity stakes in this gas discovery and soon it will start E&P activities there.

TechSci Research depicts that growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favourable government policies is boosting demand for LNG in Egypt. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years. Increasing urbanization, growing industrialization and rising number of power related projects, city gas distribution, petrochemical, etc., are expected to positively influence global LNG market during 2016 - 2025.

According to released report of TechSci Research, “Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years. In 2015, global LNG export market was dominated by Qatar and Australia, due to huge natural gas reserves and large liquefication capacities in these countries. Increase in spot market purchase is expected to keep LNG prices under check in Asia-Pacific and Europe.