Egypt is accelerating the development of major gas discoveries, with an aim to achieve energy efficiency by 2020-21 with over 7.5 cubic feet, according to the Minister of Petroleum Tarek El Molla. As part of the plan, natural gas production is set to increase to c5bn cfpd in FY17/18 as Zohr field comes online, El Molla said, adding that gas imports will continue in order to meet a rapidly growing consumption. Zohr field - the biggest gas field in the Mediterranean with an estimated 30 trillion cubic feet - along with BP's northern Alexandria field are due to enter production next year, producing c1bn cfpd by 2017-end and 400-500mn cfpd, respectively. Zohr is expected to produce 2.5-3bn cfpd when it reaches peak production in 2019. Egypt's current domestic gas production is c4.35 cfpd versus consumption of c5.2, he said. The state gas buyer EGAS will launch a new exploration tender in early 2017, offering nine to 11 concessions, and will hold an international tender for 48-56 LNG cargoes, the first batch of c120 cargoes expected for 2017. A third floating and storage regasification unit (FSRU), an import terminal that converts LNG to natural gas to feed the power grid, is expected to arrive by June 2017 and will help process the surge in gas needed once the Siemens plants enter the energy grid, Molla said. Egypt's LNG import bill this year would be cUSD3bn and the country spends cUSD700-800mn on both LNG and petroleum products monthly. The state's 2016-17 budget had aimed to reduce subsidy expenditure to EGP35.04 from EGP51bn spent in FY15/16. "The rise in oil prices worldwide will no doubt change subsidy spending, because a third of what we consume we import, so the bill will increase," he said. The state's subsidy bill was cEGP12-13bn (USD1.4-1.5bn) during 1Q16/17, Molla said. (Reuters)