Egypt to accelerate gas exploration by 2027

The Egyptian government aims to step up gas exploration and connect 800,000 households to the natural gas network by 2027, as part of a broader push to strengthen energy security and reduce dependence on imports.

Egyptian Minister of Petroleum and Mineral Resources, Karim Badawi,
announced the settlement of outstanding arrears owed to foreign energy
partners, in line with the directives from President Abdel Fattah Al-Sisi.

The announcement was made at the general assembly of the Egyptian
Natural Gas Holding Company (EGAS), convened to review the 2026-27
budget, and aimed at restoring investor confidence and accelerating
gas exploration and production activity across the country.

According to the Petroleum Ministry, the move sends a “strong message
of confidence” to the international oil companies at a time when Egypt is
seeking to revive its domestic natural gas output.

The Minister stressed that the priority is to intensify exploration campaigns while adopting more flexible commercial models to attract fresh investment into a sector that is strategic to the national economy.

EGAS’s strategy for fiscal year 2026-27 calls for the drilling of 17 exploration wells and the bringing online of 51 new production wells, as part of development projects including the West Denis-1 and Sirius sites.

In parallel, Egypt will launch the first phase of a seismic survey program in the Eastern Mediterranean during the second half of the year, aimed at identifying new potential reserves in a zone that has emerged as one of the region’s major gas hubs.

The Egyptian government is also pressing ahead with the expansion of the domestic natural gas distribution network.

According to figures presented at the meeting, approximately 385,000 homes have already been connected during the first half of the current fiscal year.

The national plan now targets 800,000 connected households by 2026-27, as part of a broader energy access strategy for residential consumers.

The programme also includes the connection of 841 villages under the
presidential “Decent Life” initiative, which aims to upgrade infrastructure and living conditions in rural areas.

To date, 675 villages have already been hooked up to the gas network, according to the ministry.

The announcements come against a particularly tense geopolitical backdrop. Military escalation across the Middle East and mounting tensions around the Strait of Hormuz through which nearly 20% of the world’s oil passes are disrupting energy supply chains and driving up shipping and maritime insurance costs.

MK/ak/te/sf/lb/gik/APA

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