Fitch Solutions expects Egypt’s annual natural gas production to increase by 8% Year-on-Year (YoY) in 2026 compared to 2025, to reach 46.6 billion cubic meters (bcm). This growth follows a production decline to 43.1 bcm during 2025,  according to a Cabinet statement.

The projected recovery is driven by the resumption of drilling operations at the Zohr field and the launch of the second phase of the Raven project. Over the long term, production is expected to rise at an average annual rate of 2.7% between 2026 and 2035. This outlook is supported by a successful evaluation program involving five wells at the Zohr field, which added significant potential to the country’s natural gas output.

In the near term, market optimism remains high following a series of exploration agreements and drilling commitments made by international oil companies (IOCs) in 2025. Significant growth prospects are expected to emerge from upcoming licensing rounds.

To accelerate the return of investments to the petroleum sector, the Egyptian government is working to settle outstanding arrears owed to oil and natural gas companies. The government has already repaid approximately $5 billion in arrears and intends to settle the remaining $1.2 billion by June 2026.

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