The Egyptian Natural Gas Holding Company "EGAS" and Chevron Corporation signed a Memorandum of Understanding (MoU) to cooperate in the transportation, import and liquefaction activities of the Eastern Mediterranean gas export.
Chevron Corporation, an American multinational energy company, plans to drill its first exploration well in its concession area in the Mediterranean Sea this September.
In addition, Chevron has affirmed its willingness to play an active role and cooperate in projects aimed at improving environmental conditions in the energy industry.
According to the agreement, the two companies will evaluate potential opportunities to transfer available gas from the Eastern Mediterranean to Egypt in order to maximize its value by liquefying it for re-export and sale; to make it economically feasible for both parties; including carrying out any studies necessary to produce low-carbon LNG.
On the other hand, the Minister of Oil and Mineral Resources, Tarek El-Molla, held an extended session of talks with the CEO of Chevron, Michael Wirth, where they discussed the joint cooperation between the two parties and the activities of the American company in the field of research and exploration.
Chevron participates with its investments in the search for gas in the Western Mediterranean in the areas north of Sidi Barani, Narges and North El Dabaa, and in Area 1 in the Red Sea, which it won in the first bid submitted by the Ministry of Petroleum and Mineral Resources for the development and exploitation of oil and gas in the Red Sea areas, in addition to the activity of marketing of high quality oil
Eastern Mediterranean Gas
El-Molla stressed that the coordination and cooperation demonstrated by the Eastern Mediterranean region in the exploitation of its natural resources under the auspices of the Eastern Mediterranean Gas Forum offer more investment opportunities for cooperation with Chevron.
He said that the Memorandum of Understanding that has been signed is one of the important steps to achieve this.
The minister stressed that both sides agreed to support efforts to develop oil wealth, marketing activities and increase oil exports, support Egypt's efforts to host the COP27 climate summit and work together to reduce emissions and decarbonize as part of the presence of a committee on oil sector initiatives at the summit.
El-Molla explained that Egypt has a strong infrastructure that can be linked to gas fields in the region, in addition to good relations with partners in the Eastern Mediterranean region, stressing the strong desire of the U.S. company to expand its research and exploration operations in Egypt in the coming period.
Gas export agreement
Earlier in June, Egyptian Oil Minister Tarek El-Molla and Israeli Energy Minister Karin Elharar signed an agreement on the delivery of natural gas to the European Union (EU) from the Eastern Mediterranean region.
The agreement was signed at the EMGF ministerial meeting.
"With this EU-Egypt-Israel agreement, we will work towards the stable delivery of natural gas to the EU from the Eastern Mediterranean region," European Commission President Ursula von der Leyen tweeted Wednesday.
"This will contribute to the energy security of our EU and we are building infrastructure suitable for renewable energy - the energy of the future," she added.
Egyptian gas exports
Egypt's total natural gas exports amounted to 2.5 billion cubic meters at the end of 2020, acquiring about 1.3% of the total natural gas exports of Arab countries, according to the Organization of Arab Petroleum Exporting Countries (OAPEC) report for 2021.
Egypt's global share of total natural gas exports in 2020 reached about 0.53%, according to data from the Economic Complexity Observatory (ECO) platform.