Ahmed Kamel – Egypt Daily News
Egypt’s natural gas production has risen to 4.21 billion cubic feet per day, marking an increase of 110 million cubic feet compared to June, according to a senior government official who spoke to Asharq News on condition of anonymity.
The recent uptick in production is being credited to a series of incentives introduced by the Ministry of Petroleum and Mineral Resources, aimed at foreign partners operating in the sector. These incentives, combined with a renewed commitment to repaying overdue payments to international oil and gas companies, have accelerated the integration of new gas development projects across both onshore and offshore concession areas.
In particular, international energy giants Shell and Apache have played a key role in boosting production this month. Apache contributed approximately 100 million cubic feet per day from its concessions in Egypt’s Western Desert, while Shell added another 60 million cubic feet per day from its operations in the Mediterranean’s Burullus fields.
Officials anticipate that this upward trajectory will continue throughout the second half of the fiscal year, supported by ongoing field development and exploration initiatives.
Export Incentives and Policy Reforms
To further attract foreign investment and enhance production capacity, the Egyptian government has introduced a new framework allowing international partners to export a portion of their share of newly produced gas. The revenue from these exports can be used to recover outstanding receivables. Additionally, the government has raised the price it pays for the foreign partners’ share of the new gas output, a move designed to improve the economics of exploration and production in Egypt.
In a rare move underscoring the country’s growing gas capabilities, Egypt recently exported a liquefied natural gas (LNG) shipment totaling 3.75 billion cubic feet to European markets, an indication of its efforts to reassert itself as a reliable energy partner for the continent amid ongoing global energy instability.
Exploration Success and Investment Surge
The state-owned Egyptian Natural Gas Holding Company (EGAS) reported 29 new natural gas discoveries during the 2024/2025 fiscal year, which ended in June. These discoveries were made in key hydrocarbon-rich regions including the Mediterranean Sea, the Western Desert, and the Gulf of Suez. The new finds are estimated to have added around 1.85 trillion cubic feet to Egypt’s natural gas reserves, according to a statement released by the Ministry of Petroleum.
In terms of upstream development, EGAS awarded exploration rights for nine new blocks over the past fiscal year. Six new agreements were finalized, securing total investments of $479 million and signature bonuses amounting to $14.5 million.
Further strengthening production capabilities, the ministry oversaw the completion of seven new gas field development projects and brought 23 new production wells online. The total investment for these development activities reached approximately $1.7 billion.
A Strategic Repositioning in the Energy Sector
Egypt’s latest developments in the natural gas sector signal a broader strategic shift toward maximizing domestic production, optimizing export potential, and attracting sustainable foreign investment. The government’s ongoing reforms and proactive approach to honoring financial commitments are seen as critical steps toward restoring confidence in Egypt’s energy sector after years of fluctuating investment levels and regional market pressures.
With significant reserves, robust infrastructure, and an increasingly favorable investment climate, Egypt is positioning itself to play a central role in the region’s energy future, particularly as European markets look for alternative gas suppliers in the wake of geopolitical instability.
