The global rush to secure liquefied natural gas (LNG) intensified after Russia’s invasion of Ukraine on February 24, 2022. As Western sanctions disrupted Russia’s massive energy exports to Europe, LNG quickly emerged as the flexible, fast-moving alternative to pipeline gas. Unlike pipelines, LNG doesn’t require years of complex infrastructure or cross-border negotiations—it can be shipped to global markets on demand.
While Western powers scrambled to secure supplies, China had already locked in major long-term LNG deals with countries like Qatar—likely due to early warnings from the Kremlin. This pivot shifted Western attention to a more accessible and strategically vital LNG hub: Egypt.
Major Oil Majors Move In
U.S. supermajor Chevron is reportedly set to win rights to develop the West Star site in Egypt’s northeastern Mediterranean region—extending its recent exploration successes, including the massive Nargis-1 gas find in the Red Sea. Chevron already operates the Leviathan and Tamar fields in Israel and the Aphrodite field offshore Cyprus, reinforcing its Eastern Mediterranean footprint.
Meanwhile, Shell is advancing to the tenth phase of Egypt’s West Delta Deep Marine (WDDM) gas project in the Mediterranean, and BP has pledged $3.5 billion in new exploration and development over the next three years—possibly doubling that amount if new discoveries materialize.
Egypt’s estimated 1.8 trillion cubic metres (Tcm) of gas reserves could prove even larger, according to EU energy security sources, with Wood Mackenzie valuing remaining East Med gas assets at $19 billion.
Egypt’s Strategic LNG Edge
What sets Egypt apart is its operational LNG export infrastructure—something no other country in the East Mediterranean currently offers. Combined with its control of the Suez Canal and the Suez-Mediterranean (SUMED) Pipeline, Egypt occupies a vital choke point in global energy logistics. Approximately 10% of the world’s oil and LNG passes through these routes, which are not under Chinese control—unlike the Strait of Hormuz or Bab al-Mandab, where China’s influence is growing.
Geopolitical Dimensions
Egypt holds unmatched strategic weight in the Arab world. Long regarded as the intellectual and ideological heart of Pan-Arabism, Egypt’s alignment with Western energy and security interests is viewed as a geopolitical counterbalance to the China-Russia-Saudi bloc.
By strengthening ties with Cairo, the U.S. and its allies are reaffirming Egypt’s leadership role in the Arab world—at a time when regional influence is in flux.
Financial Backing from the West
Despite Egypt’s ongoing debt and currency challenges—partially worsened by its expansive gas sector buildout—the West continues to offer financial support. In March 2024, the IMF unlocked $1.2 billion under an expanded $8 billion Extended Fund Facility (EFF). Additional support remains on the table from the World Bank and European Union.