(Ecofin Agency) - Italian Edison is to start the drilling of three new wells in its gas concession in Egypt in January 2017, the company’s Commercial Manager, Tarek Shalaby, revealed.

The three wells will be drilled in the South Edco, Abu Qir, and North West El Gendy concessions and the company plans to start the development of the North Abu Qir-3 by December 2016 to produce 80 Mmcf/d of gas and 3,500bpd of condensates, with investments worth $220m.

Edison and Al Qalaa Holdings are currently in talks with the Egyptian Ministry of Petroleum for the provision of gas for a proposed power plant through the Abu Qir field. They are also in negotiations with the Egyptian General Petroleum Corporation (EGPC) regarding agreements to provide the needed lands for the project.

The Egyptian Ministry of Petroleum has said that the gas consumption of electricity power plants reduced from 3.7bcf/d to be 3.4bcf/d due to moderate temperatures during September.

The country in August reached its highest importation capacity of 1.3bcf/d of gas through Floating Storage Regasification Units (FSRU) stationed at Sokhan Port and a pipeline with Jordan.

Moreover, gas production had risen from 4.35bcf/d in 2015 to 4.4bcf/d in 2016, following the connection of 4 new wells to the national grids, Egypt Oil & Gas news reports.

Anita Fatunji