Ahmed Kamel – Egypt Daily News
Egypt’s 2026 energy strategy is gaining significant momentum as the government pursues a multi-pronged plan to expand domestic production, integrate regional gas supplies, and scale both LNG exports and renewable energy capacity. Recent discussions between Petroleum Minister Karim Badawi and Italy’s Eni focus on doubling crude production and connecting Cyprus’ Cronos gas to Egyptian infrastructure, positioning Egypt as a regional energy hub for Europe and the Eastern Mediterranean.
Upstream: Reversing Decline and Rebuilding Supply
Egypt plans to drill 101 wells in 2026 across the Western Desert (67), Gulf of Suez (9), Mediterranean offshore (14), and the Nile Delta (6) to rebuild reserves and stabilize domestic gas and oil supply. Minister Badawi emphasized revitalizing mature fields, accelerating exploration, and maintaining an investment-friendly climate to attract global partners.
The Mediterranean plays a central role, particularly with Eni’s Zohr field. Optimization and infill drilling are expected to unlock approximately one trillion cubic feet of additional gas, supporting both domestic needs and LNG export capacity. The proposed Cyprus-to-Egypt gas pipeline further strengthens regional integration, providing a potential new feedstock stream for Egyptian liquefaction facilities.
Midstream: LNG Export Expansion
Egypt’s LNG infrastructure the 7.2 mtpa Idku and 5 mtpa Damietta plants remains the Eastern Mediterranean’s only fully operational large-scale LNG platform. With upstream output stabilizing and new regional gas volumes under discussion, Egypt aims to reinforce its export capacity.
Europe’s ongoing diversification away from Russian pipeline gas increases the strategic importance of Egyptian LNG. Opportunities exist for investment in shipping, storage, infrastructure financing, and related midstream services, with potential expansion if Cypriot gas is routed through Egyptian facilities.
Downstream: Refining and Petrochemicals Growth
Egypt is advancing multiple downstream projects to reduce imports of refined products and increase value-added output. Notable initiatives include:
- Assiut Oil Refining Company diesel and hydrocracker complex – $3 billion investment, producing 2.8 million tons of Euro 5 diesel annually.
- Mediterranean Petrochemicals Complex, New Alamein – $7 billion project targeting 3.1 million tons of annual petrochemical capacity, with financial close expected in 2026.
These projects present opportunities for EPC contractors, technology providers, and financiers looking to engage with North Africa’s growing downstream sector.
Renewables and Power: Scaling Clean Energy
Egypt is expanding renewable energy alongside its hydrocarbon strategy. Key projects through 2026 include:
- 1,200 MW solar-plus-storage project led by Infinity Power
- 200 MW Ras Ghareb wind farm
- 650 MW Red Sea Wind Energy expansion
- 580 MW Gabal El Zeit wind capacity
Parallel grid upgrades, including EGP 26.5 billion in transmission investments and the second phase of the Egypt–Saudi electricity interconnection (raising cross-border capacity to 3,000 MW), aim to integrate these renewables efficiently. Investors can access opportunities in generation, transmission, and long-term power purchase agreements tied to Egypt’s expanding clean energy market.
Strategic Outlook
With a combination of upstream expansion, LNG export growth, downstream industrial projects, and large-scale renewable development, Egypt is positioning itself as a reliable regional energy anchor. The 2026 strategy not only addresses domestic energy security but also creates a platform for investment and long-term regional partnerships, reinforcing Egypt’s role in global energy markets.
