Egypt Strengthens Energy Partnerships as Foreign Firms Pledge $1.6 Billion Investment
Strategic cooperation with Cyprus advances while international companies target gas output revival
Egypt is positioning itself as a regional energy hub through expanded partnerships and significant foreign investment commitments. A group of international oil companies has pledged $1.6 billion to Egypt’s gas sector during the current fiscal year, targeting fields in Burullus and North Sinai to boost national gas output by approximately 510 million cubic feet per day.
The investment comes as Egypt works to reverse a steep decline in gas production, which has fallen from nearly 6.6 billion cubic feet per day several years ago to around 4 billion currently. Egyptian officials acknowledge the government owes foreign energy companies about $500 million in unpaid dues, which has been identified as a significant barrier to faster development.
Meanwhile, Egypt’s strategic cooperation with Cyprus is advancing significantly. In February 2025, the two countries signed agreements to develop Cypriot natural gas discoveries using Egypt’s existing infrastructure. Under the deal, gas from the Cronos field will be transported to Egypt, processed at the Zohr facilities, and then liquefied at the Damietta LNG plant for export to European markets.
The cooperation extends to the Aphrodite field, which is expected to help bolster Egypt’s natural gas supplies and support the country’s rising energy demand. This partnership demonstrates Egypt’s growing role as a regional energy processing and export hub.
Minister of Petroleum and Mineral Resources Karim Badawi has been actively promoting Egypt’s distinctive capabilities and strategic geographical location as a launchpad for companies looking to expand their activities in the region. The petroleum sector is intensifying exploration and prospecting activities to make new discoveries that will expand reserves, increase production, and reduce import costs.
International energy services company Expro has been using Egypt as a launchpad for regional operations since April, expanding into Libya and Oman, with plans to extend into Cyprus and Greece. The company’s regional expansion demonstrates growing confidence in Egypt’s energy sector stability and potential.
Sources: egyptoil-gas.com, Reuters via TradingView
