Four international gas companies have allocated $380 million to drill and develop five natural gas wells in Egypt’s territorial waters through the end of April, as part of the Petroleum Ministry’s preparations to limit the impact of higher gas consumption next summer, a source familiar with the ministry’s gas production file told Al Manassa.
“The companies are aiming to develop three existing gas wells to boost daily output by adding about 80 million cubic feet per day of gas, in addition to drilling two new wells to add about 110 million cubic feet per day,” the source said, requesting anonymity.
Egypt currently produces about 4.2 billion cubic feet per day, while consumption reaches 6.2 billion cubic feet per day in winter and rises to 6.9 billion cubic feet per day in summer, driven by the use of air conditioners and other cooling devices, the source said.
Egypt is also suffering from a widening trade deficit due to petroleum imports, whose value rose in 2024–2025 to $19.4 billion.
The source said rising summer consumption has pushed the Petroleum Ministry to marshal efforts to increase domestic gas production before the season begins. “The gas wells now being developed will enter the production phase in February and March, while the companies are seeking to start production from exploratory wells no later than the end of April,” the source said.
Companies planning to inject new investment include Apache, Shell and Eni, the source said, adding that the firms are moving to accelerate plans to connect some deepwater gas wells under their purview to the national gas grid before next summer.
Not all of the new gas output will be directed to the domestic market. The source said the Petroleum Ministry will allow part to be allocated to foreign partners’ exports as an incentive to produce, given that export prices are higher than returns from selling to the local market.
On the possibility of achieving gas self-sufficiency in the medium term, the source said Egypt needs to double the capital of companies operating in the country to roughly double production, which would help cover local consumption, which is rising by 5% annually with population growth and increased industrial and commercial use.
