Safeguarding domestic energy supplies for Egypt’s 120 million citizens remains the Ministry of Petroleum and Mineral Resources’ (MoPMR) top priority, Karim Badawi, Minister of Petroleum and Mineral Resources, said during an interactive press briefing, highlighting the sector’s growth potential as the government accelerates exploration, drilling, and production in partnership with international and local companies.
Badawi highlighted the decline in Egypt’s upstream sector between July 2021 and July 2024, when natural gas production fell from 6.95 billion cubic feet per day (bcf/d) to 4.593 bcf/d, while oil and condensates production declined from 584,000 barrels per day (bbl/d) to 553,000 bbl/d.
Over the same period, outstanding dues to foreign petroleum partners increased from $980 million to $6.1 billion, while drilling activity at the giant Zohr gas field also declined, with a rig operating at the field in July 2021 but none in July 2024.
Badawi attributed the production decline primarily to lower investment in exploration and field development, stressing that restoring partner confidence was essential to reversing the trend.
The government settled the $6.1 billion in outstanding arrears in June 2026, helping restore momentum to exploration and development programs and encouraging international partners to increase their activities in Egypt.
The minister noted that one of the sector’s key milestones in 2026 was the Final Investment Decision (FID) for Cyprus’ Cronos gas field, reached by Eni and TotalEnergies in July.
The project is expected to produce around 500 million cubic feet per day (mmcf/d) at plateau and bring the first Cypriot gas to market in 2028. The gas will be transported to Egypt, processed through existing Zohr facilities, and liquefied at the Damietta LNG plant before being exported to international markets, primarily Europe.
The Cronos FID represents a significant development for Egypt’s strategy of leveraging existing infrastructure to process regional gas resources and strengthen its position as an Eastern Mediterranean gas hub.
Badawi also pointed to new exploration and development activity as evidence of renewed momentum in the sector.
Among the recent discoveries is the West Denis-1 well in the Mediterranean’s Temsah concession. Operated by Eni, the discovery contains estimated reserves of 2 trillion cubic feet (tcf) of natural gas and 130 million barrels of condensates.
Badawi said expanding renewable energy’s contribution to the national grid is key to reducing natural gas consumption in power generation.
This would free up additional gas for higher-value domestic industries while creating greater capacity for exports over the longer term.
He noted that coordinated planning among government entities helped Egypt maintain uninterrupted electricity supplies during the summers of 2025 and 2026, without load-shedding, supported by coordination between the petroleum and electricity ministries.
Turning to downstream performance, the Minister highlighted that domestic refinery utilization rates surpassed 80% in 2026, driven by systematic efficiency upgrades across the nation’s processing facilities.
Higher domestic refinery output is helping meet local demand while reducing reliance on imported petroleum products.
Egypt’s annual domestic consumption includes approximately 11.84 billion liters of gasoline, 17.77 billion liters of diesel, and 287.5 million LPG cylinders, according to Badawi.
Beyond hydrocarbons, Badawi outlined structural reforms aimed at unlocking Egypt’s mineral resources, including the transformation of the Egyptian Mineral Resources Authority (EMRA) into the Mineral Resources and Mining Industries Authority (MRMIA), which became an independent economic entity. He added that the ministry is working to attract local and foreign investments to the Egyptian mining sector.
The ministry is also introducing fiscal incentives to attract mining investment, including 30-year tax and customs exemptions under mining exploitation agreements.
Highlighting the ministry’s focus on value addition, Badawi pointed to the $658 million Abu Tartour Phosphoric Acid Complex in New Valley as a benchmark for Egypt’s evolving mining strategy.
Located on the Abu Tartour Plateau, which holds Egypt’s largest phosphate reserves, the complex is designed to produce 250,000 tonnes of commercial-grade phosphoric acid annually during its initial phase. The project is scheduled for completion within 30 months.
Badawi said shifting from the export of raw phosphate rock toward localized chemical processing would maximize the value generated from Egypt’s mineral resources, while creating direct and indirect jobs and generating foreign currency through exports via Safaga Port.
The Minister concluded by inviting the press to attend the upcoming Egypt Mining Forum, where the official results of the June investment rounds will be formally unveiled.
