Egypt aims for 6.6 bcfd gas output by 2027 as investment drive intensifies
ITF Team2 min read
Egypt targets 6.6 billion cubic feet per day of gas by 2027, backed by new wells, foreign capital and infrastructure upgrades, according to a 7 Nov 2026 announcement.
Key takeaways
- Egypt plans to reach 6.6 billion cubic feet per day of gas production by 2027.
- The ministry reported 591 new wells and 113 discoveries between July 2024 and June 2026.
- Eni has invested about $8.5 billion in Egypt and aims to drill 30 exploration and 200 development wells.
- Egypt settled $6.1 billion of overdue payments to energy partners in 2026.
On 7 Nov 2026 the Egyptian Ministry of Petroleum and Mineral Resources confirmed a renewed push to lift gas output to 6.6 billion cubic feet per day (bcfd) by 2027. The target is anchored in a wave of new drilling, exploration incentives and a fresh influx of capital from international majors, signalling a strategic shift after years of declining production.
How the production goal reshapes market expectations
Traders have begun pricing Egypt’s gas supply with a more optimistic outlook, anticipating tighter regional balances as new volumes flow from the Mediterranean offshore fields. The announced capacity would place Egypt among the top gas exporters in the Middle East, potentially easing the continent’s reliance on imports from Russia and Iran.
The government’s plan hinges on leveraging existing pipelines, liquefaction facilities and storage hubs, which should lower the incremental cost of bringing new discoveries online. By re‑using this infrastructure, developers can shorten the time to first gas and improve the economics of marginal fields.
Policy levers and investment incentives
At a round‑table in October, Minister Karim Badawi met with Cyprus’ Energy Minister Michael Damianos, East Mediterranean Gas Forum secretary‑general Osama Mobarez and senior executives from leading oil companies. The dialogue focused on streamlining licensing, offering fiscal incentives and guaranteeing prompt payment of royalties, all designed to attract foreign capital.
Egypt has already cleared $6.1 billion in overdue payments to partners, a move that boosted confidence among investors. The five‑year energy strategy, outlined by President Abdel Fattah Al‑Sisi, also promises $4 billion for refinery upgrades, further improving the value chain for gas‑to‑liquid projects.
Read also: Guyana oil boom eases global supply crunch
Eni’s expanding role and new discoveries
Italian major Eni, which has poured roughly $8.5 billion into Egypt, announced a plan to drill 30 exploration wells and 200 development wells. Its recent Temsah offshore find is estimated at 2 trillion cubic feet of gas and 130 million barrels of condensate, located less than 10 km from existing processing hubs, which should accelerate commercialisation.
Eni also unveiled phase‑two of the Meleiha gas‑processing project in the Western Desert, targeting 100 million standard cubic feet per day. The added capacity will feed domestic power plants and industrial users, reinforcing the government’s goal of reducing fuel imports.
What traders should monitor next
Key data points to watch include the first gas flow from the Temsah field, expected before the end of 2028, and the performance of the Meleiha plant once it comes online. Additionally, any changes to the fiscal regime or new bilateral agreements with neighboring countries could shift the investment calculus.
- First gas from Temsah discovery – expected < 2 years (2028)
- Meleiha phase‑two processing capacity – 100 mmcf/d
- Egypt’s overdue payments cleared – $6.1 bn
- Targeted gas output – 6.6 bcfd by 2027
Frequently asked questions
Why is Egypt targeting 6.6 bcfd of gas by 2027?
The target reflects a strategic effort to replace ageing offshore fields, attract foreign investment and use existing pipelines and processing facilities to create a regional gas hub, thereby lowering import dependence and boosting export revenues.
What role does Eni play in Egypt’s gas expansion?
Eni has invested about $8.5 billion, plans to drill 30 exploration and 200 development wells, and recently discovered a 2 trillion‑cubic‑foot gas field (Temsah) that is close to existing infrastructure, supporting the country’s production goals.
Official data sources
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This article is compiled from international market news for information only. It is not investment advice.