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Oil And Gas
CIO Bulletin
28 October, 2024
As a major player in the global energy market, Egypt shifts focus towards natural gas development while balancing ambitious green goals.
Egypt, a longstanding leader in the African energy market, is doubling down on its natural gas ambitions amid growing challenges and shifting priorities. Known for its role as a significant oil and gas producer and a crucial transport hub for global energy, Egypt is making strategic moves to enhance its natural gas output while revisiting its renewable energy targets.
The country’s energy sector has faced geopolitical challenges and domestic disruptions in recent years, yet Egypt has managed to retain its influence in the industry. In 2023, Egypt ranked as Africa’s second-largest producer of natural gas, just behind Algeria. This output has been largely fueled by offshore fields like the notable Zohr gas field. However, projections show a possible decline in Egypt’s natural gas production due to the natural maturing of these fields and recent exploration setbacks.
To counter these concerns, the Egyptian government is actively ramping up efforts to attract new investments and expand exploration activities in its natural gas sector. This commitment was highlighted by Petroleum Minister Karim Badawi, who urged energy stakeholders at the 2024 Mediterranean Energy Conference to focus on increasing natural gas discoveries and investment opportunities in the region.
At the same time, Egypt remains mindful of its renewable energy targets, initially aiming for a 58 percent renewable share by 2040. However, recent plans have revised this goal to 40 percent to align more closely with the expanded focus on natural gas development. This recalibrated approach positions Egypt to leverage its natural resources strategically while still participating in the global shift toward cleaner energy.