Egypt accelerates gas field development to boost production, cut imports
Updated 2/27/2025 7:07:00 AM
Arab Finance: Minister of Petroleum and Mineral Resources Karim Badawi has directed the Egyptian Natural Gas Holding Company (EGAS) to develop an urgent plan to accelerate the development of undeveloped gas discoveries, as per a statement.
The move aims to increase local production and reduce reliance on imports, aligning with the ministry’s strategy.
During his chairmanship of EGAS’s General Assembly, Badawi highlighted the success of incentive packages that have encouraged international oil and gas companies to expand operations in Egypt.
He noted the momentum seen during the Egypt Energy Show (EGYPES), where agreements and discussions advanced efforts to open new areas for cooperation.
He also expressed appreciation for the sector’s workforce, acknowledging their continuous efforts to meet Egypt’s energy needs.
EGAS Executive Managing Director Yassin Mohamed reviewed key developments in the gas sector, including the launch of a global bid for gas exploration in 12 areas in the Mediterranean and the Nile Delta.
Results are expected in the second half (H2) of the fiscal year (FY) 2024/2025, with five new agreements in the final signing stages and plans to amend existing contracts.
For the FY 2025/2026, Egypt aims to finalize additional agreements based on bid outcomes.
In exploration, seven wells have been completed in H1 of FY 2024/2025, with bp drilling the Fayoum-5 well in North Alexandria.
A 3D seismic survey covering 2,100 square kilometers in the Western Mediterranean has been completed to attract investment.
In the H2 of the current FY, four more wells will be drilled, while plans for FY 2025/2026 include 17 exploratory wells with $434 million in investments.
Egypt has also ramped up production efforts, completing five gas field development projects and bringing eight new wells on production line in H1 FY 2024/2025, adding 275 million cubic feet of gas per day and 7,000 barrels of condensates.
Four additional projects and 14 wells are set for H2, targeting 475 million cubic feet per day and 11,000 barrels of condensates with $845 million in investments.
In FY 2025/2026, seven projects and 24 wells are planned, with an initial production capacity of 630 million cubic feet per day and $1.245 billion in investments.
Efforts to expand Egypt’s natural gas network continue, with the national grid now spanning 104,000 kilometers.
Six new pipeline projects are planned for FY 2025/2026.
Gas supply to residential areas is also increasing, with 700,000 housing units targeted for connection by the end of the current FY, bringing the total to 15.6 million. Plans for FY 2025/2026 include 800,000 more units.
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