Egypt outlines ambitious energy plans, multi-billion FDI, major gas discoveries

CAIRO – 7 May 2026: Egypt’s Cabinet has highlighted major gas discoveries, higher renewable energy targets, and plans to further empower the gas sector, while pointing to billions of dollars in anticipated investments.

Prime Minister Mostafa Madbouly detailed the nation’s ambitious vision during the Cabinet’s weekly press conference in the New Administrative Capital on Wednesday.

Energy Partners’ Dues to Be Cleared by June

On the energy front, the prime minister highlighted a series of positive developments this week, reaffirming the government’s full commitment to settling dues owed to foreign energy partners.

Madbouly said the government had reduced accumulated arrears, built up over two years, from more than $6.1 billion to just $714 million.

He added that the remaining amount is scheduled to be fully repaid before the end of June, closing the file entirely by June 30.

The prime minister said the move had served as a strong incentive for international companies to intensify exploration, drilling, and production activities in Egypt.

He also highlighted a package of state-backed incentives that helped strengthen investor confidence and encourage new investments.

Foreign Direct Investment

On foreign direct investment, Madbouly said international companies have committed more than $19 billion in upcoming petroleum sector investments over the next three years under plans announced by the companies themselves.

He said the planned investments include $8 billion from Eni, $5 billion from BP, $2 billion from Emirati ARCIUS, and $4 billion from Apache Corporation.

Madbouly said the presence of major international companies reflects confidence in the Egyptian economy despite ongoing global challenges.

Landmark Gas Discoveries

The prime minister also pointed to the recently announced natural gas discovery in the Abu Madi area of Kafr El-Sheikh Governorate in the Nile Delta, saying the find is expected to add 50 million cubic feet of gas production per day.

Nidoco N-2 was drilled from onshore in Abu Madi using advanced directional drilling techniques. The Ministry of Petroleum and Mineral Resources

The prime minister said the discovery’s proximity to the coast gives it a competitive advantage, allowing production to begin by this summer and helping reduce Egypt’s import bill.

Madbouly also referred to the Denise gas field, which holds estimated reserves exceeding 2 trillion cubic feet of natural gas and more than 130 million barrels of condensates.

He said the field is expected to produce 500-600 million cubic feet of gas per day once fully operational, equivalent to around 8% to 10% of Egypt’s total natural gas needs.

Production is expected to begin in the second half of 2027.

Madbouly said the discoveries represent a key pillar in securing the country’s energy needs.

He added that technical studies conducted by international companies had also identified additional promising discoveries, expressing hope that 2026 would bring further positive developments in the sector.

“These efforts are helping reduce the import bill and bringing Egypt closer to achieving self-sufficiency in energy needs, especially natural gas,” Madbouly said.

He added that the state is “moving steadily to secure energy supplies and maximize domestic resources.”

Boosting Renewable Energy Ambitions

As part of the state’s strategy to diversify energy sources, the prime minister reviewed efforts to expand new and renewable energy production.

Madbouly said Egypt has raised its renewable energy target to around 45% of the country’s energy mix by the end of 2028, up from a previous target of 42% by 2030.

He also pointed to the signing this week of a financing agreement for several projects in eastern Egypt, which are expected to add around 4,750 MW of wind power capacity, alongside battery storage capacity of up to 4,000 MWh.

“We are talking about a massive volume of renewable energy set to enter service over the next two years,” Madbouly said, emphasizing that plans reinforce Egypt’s leadership in sustainable energy.

 

‘Promising Indicators’ in Mining

Madbouly also highlighted the approval of amendments to the executive regulations of the mineral resources law.

He described the move as a key step toward unlocking broader investment opportunities in the mining sector, similar to those achieved in oil and gas.

He stressed that indicators in the sector are “highly promising” and suggested Egypt could witness “a major leap” in mining activity.

The prime minister explained that the government is moving quickly to establish projects based on phosphate ore to avoid exporting raw materials and instead convert them into higher-value products.

He said the strategy is aimed at boosting state revenues and creating new jobs.

Economy Grows 5% in Third Quarter

On broader economic indicators, Madbouly said Egypt’s economy grew by 5% in the third quarter of the current fiscal year, surpassing the government’s earlier estimate of 4.8%.

He added that growth had reached 5.3% in both the first and second quarters, calling the figures a positive sign for overall annual performance.

Madbouly acknowledged that fourth-quarter figures could face greater pressure from the impact of the regional conflict, but said full-year growth is still expected to exceed the previous fiscal year’s performance.

On inflation, the prime minister pointed to April data showing a slight decline compared with the previous month, describing it as a positive indicator despite ongoing volatility in global oil, energy, transport, and shipping costs.

Empowering Private Sector

On efforts to boost private sector participation and deepen capital markets, Madbouly said the government’s economic group had reviewed executive steps related to listing state-owned companies on the Egyptian Exchange.

He said 12 companies have already completed temporary listing procedures, with the government aiming to list an additional eight to 10 companies by June 30.

Madbouly also announced the start of listing procedures for 10 additional petroleum-sector companies, bringing the total number of targeted state-owned firms to around 30 ahead of future public offerings to citizens and investors.

He said the listings align with the state’s strategy to broaden ownership and maximize returns from public assets, adding that the measures are expected to strengthen the competitiveness of the Egyptian economy and attract further investment.

The State Ownership Policy Document, aimed at empowering the private sector, has been fully updated, Madbouly said.

He added that the revised version has been shared with international institutions, including the International Monetary Fund and the World Bank, for review and feedback.