Egypt Aims to Become Regional Energy Hub, Says Minister

Engineer Karim Badawy, Egypt’s Minister of Petroleum and Mineral Resources, announced that the country is focused on enhancing its position as a regional hub for energy trading and storage in the Eastern Mediterranean. This initiative leverages Egypt’s strategic geographical location and its advanced infrastructure in oil and gas.

During his address to the Industry Committee of the House of Representatives, Badawy emphasized that the ministry’s goal extends beyond making Egypt a center for natural gas trading; it also aims to establish the country as a regional hub for petroleum product trading and storage. This move is expected to add value to the national economy and enhance the attractiveness of the Egyptian market for investments.

He noted that regional competition in the energy sector is intensifying, with several countries in the Eastern Mediterranean, including Libya, Syria, Greece, and Cyprus, initiating new bids and attracting investments in exploration and research. This trend necessitates maintaining the competitiveness of the Egyptian market and creating an appealing investment environment for global companies.

Badawy highlighted that providing stable supplies of oil, gas, and energy at competitive prices is crucial for supporting industrial expansion plans. The ministry is committed to reducing supply costs and boosting domestic production to enhance the growth potential of Egyptian industries.

Currently, Egypt operates four liquefied natural gas (LNG) regasification units—three located in Ain Sokhna and one in Damietta—along with preparations for an additional unit at Aqaba port. These facilities will strengthen Egypt’s capacity to receive LNG and convert it back into gaseous form to meet local market demands.

The minister confirmed that a comprehensive plan has been developed to secure the country’s gas needs through 2026. This plan includes ensuring necessary gas shipments, enhancing regasification efficiency, and increasing strategic fuel reserves while coordinating with relevant authorities, particularly the Ministry of Electricity and Renewable Energy.

Badawy reiterated that the state’s priority is to guarantee uninterrupted gas supply across all economic sectors while being prepared for various potential scenarios. This approach aims to ensure energy system stability and continuous fuel availability for production, industry, and services.