bp to supply Egypt with 160M cubic feet of natural gas daily in H2 2025
Updated 3/13/2025 11:32:00 AM
Arab Finance: bp plans to boost Egypt’s natural gas production by 160 million cubic feet per day from two wells in the King Mariout and Fayoum deepwater concessions in the Mediterranean Sea during the second half (H2) of 2025, an unnamed government official told Asharq Business.
Increasing domestic gas production would help reduce Egypt’s reliance on liquefied natural gas (LNG) imports, which surged last year due to a supply-demand gap that led to power outages affecting both households and industries.
The country’s natural gas production has declined to 4.35 billion cubic feet per day, while demand stands at around 6.2 billion cubic feet daily.
The official said bp is currently drilling two exploratory wells in the King Mariout 2 and Fayoum 5 concessions, each with an estimated production capacity of 80 million cubic feet per day.
The wells are located in the North Alexandria concession area, where BP is working to assess actual producible reserves. The process is expected to be completed by April.
The cost of drilling a single well in the North Alexandria concession area in the Mediterranean’s deep waters is estimated at around $150 million, the official added.
To address the supply gap, the Egyptian government plans to import between 155 and 160 LNG shipments this year.
At the end of last year, Egypt introduced new incentives to attract foreign investment in gas production, including allowing companies to export part of their new output to cover operational costs and increasing the price of their share of production from any field.
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