Egypt’s Minister of Petroleum Prioritizes Increase in Domestic Natural Gas Production

Engineer Karim Badawy, Egypt’s Minister of Petroleum and Mineral Resources, emphasized that boosting domestic natural gas production is a top priority for the government. This focus comes amid rising costs associated with importing gas and the need to secure energy supplies for the local market.

During his address to the Industry Committee of the House of Representatives this evening, Badawy revealed that the cost of a liquefied natural gas shipment was approximately $43 million before global crises, but has now surged to around $80 million per shipment. This increase places significant financial burdens on the state.

Each shipment is estimated to contain about 170 million cubic meters of natural gas, sufficient to supply the national grid for nearly four days. This situation necessitates continuous shipments and a well-planned supply strategy to ensure stable fuel supplies without shortages.

Badawy pointed out that the ministry has made efforts to diversify gas import sources both geographically and through various suppliers and companies. This strategy aims to mitigate risks associated with geopolitical crises or disruptions in global supply chains.

This diversification has helped shield the Egyptian market from the repercussions of regional tensions, with Badawy asserting that the country has not been directly affected by potential restrictions on certain international transport routes due to its reliance on varied supply sources.

The minister stressed that energy consumption rationalization and improving efficiency are crucial components of the government’s strategy, as these measures can significantly reduce import bills and alleviate pressure on the energy system.

He also noted that expanding renewable energy projects will further decrease Egypt’s future fuel import needs by reducing reliance on natural gas for electricity generation, thereby freeing up larger quantities for industrial and developmental uses that add greater value.