At the World Energies Summit in London, Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, unveiled an ambitious five-year strategy aimed at transforming Egypt into a leading regional energy hub.
The plan includes drilling 480 new oil and gas exploratory wells backed by $5.7 billion in investments, a move that underscores Cairo’s commitment to expanding energy production, modernizing infrastructure, and attracting global capital. Specifically, in 2026 alone, Egypt intends to drill 101 wells distributed across key regions: 67 wells in the Western Desert, 9 wells in the Gulf of Suez, 14 wells in the Mediterranean Sea, and 6 wells in the Nile Delta. This targeted drilling effort aims to tap into diverse hydrocarbon reserves across Egypt’s main basins, supporting the country’s goal of increasing production and strengthening its energy security.
Investment incentives drive strong sector growth
Badawi attributed this expansion to a package of investment incentives and regulatory reforms rolled out over the past year. These measures have already yielded results: 21 new agreements with international energy firms, $1.1 billion in committed investments, and 300 wells brought online—culminating in a long-awaited uptick in gas production as of August 2025, marking a reversal of years of output decline.
Global energy giants commit billions to Egypt’s future
Looking ahead, Egypt’s roadmap to 2030 aims to sustain growth through deeper collaboration with international partners. Global energy giants are responding: Eni has pledged $8 billion in new investments, BP is committing $5 billion for exploration, and companies such as Shell and Arkeus Energy have joined in signing four additional exploration agreements worth over $340 million. These moves signal rising global confidence in Egypt’s energy sector and its potential as a long-term growth market.
Strategic infrastructure and petrochemical expansion
Egypt is also doubling down on its strategic infrastructure and value-added energy industries. With one of the largest oil refining capacities in Africa, robust LNG export hubs in Idku and Damietta, and critical pipeline links like SUMED and the Arab Gas Pipeline, the country is well-positioned to serve as a regional energy gateway. The Suez Canal further enhances Egypt’s logistical advantage in global energy trade. The government is also targeting an increase in petrochemical exports to $4.2 billion by 2030, up from $2.4 billion in 2025.
Part of this vision includes a shift toward sustainability. Egypt is aiming for renewables to account for over 42% of its energy mix by 2030, with a longer-term goal of 60% by 2040—a central plank in the country’s climate strategy to reduce emissions while meeting growing demand.
Industrial diversification is also a key focus. Among Egypt’s mega projects is the $7 billion Alamein Petrochemicals Complex, designed to supply key sectors such as automotive, construction, and packaging. Another highlight is the Ethylene and Polyethylene Complex in Alexandria, one of the largest in Africa. Additionally, the Soda Ash Project in New Alamein aims to eliminate Egypt’s dependence on soda ash imports by producing 450,000 tons annually, boosting self-sufficiency in a critical industrial material.
International partnerships fuel petrochemical ambitions
Further solidifying this momentum, Egypt recently signed a framework agreement with UK-based Shard Capital to develop a $7 billion petrochemical complex in New Alamein, in partnership with Saudi Arabia’s Al-Qahtani Group. Announced at EGYPS 2025, the project will deploy cutting-edge technologies aligned with top global environmental standards and is expected to contribute to economic development and job creation in the surrounding region. The deal reflects Egypt’s broader strategy of leveraging international partnerships to scale industrial output and maximize the value of its natural resources.
