The Egyptian government has given its approval for a hike in the purchase price of natural gas produced from Western Sahara concession areas by Tunisian oil company HBS and China’s North Petroleum International (NPIC), as confirmed by a government official on Wednesday. The gas supply price has been raised by 13 percent to $3 million per million thermal units. Egypt is actively working towards increasing its oil production by 11 percent in 2023 as part of its strategy to become a regional energy hub. The country currently produces between 6.5 and 7 billion cubic feet of natural gas per day, and this price increase aligns with its goal of optimizing gas liquidation and re-exportation.
The official added that HBS would inject a new investment of about $70 million to develop its concession area in southwest Alamein to produce 30 million cubic feet of gas per day.
HBS participates in the Egyptian General Petroleum Corporation via South Dhaba Petroleum, and currently produces 3,500 barrels of oil and 20 million cubic feet of gas per day.
It is worth mentioning that the Western Sahara represents 18 percent of the country’s natural gas production, while the Nile Delta represents 19 percent of production, and the Mediterranean region comes in with the largest share of 63 percent.
