Egypt is addressing the dual challenges of energy security and sustainability by attracting investment in hydrocarbon exploration and developing renewable energy sources. The country aims to drill 586 oil and gas wells by 2030 while significantly increasing its renewable energy capacity.
During a meeting with senior officials from Italy’s Eni, Egypt’s Minister of Petroleum and Mineral Resources discussed enhancing cooperation to boost production, develop resources, ensure energy efficiency, and reduce carbon emissions. These are key priorities for Egypt’s economy.
In a subsequent statement before the parliamentary committee, Minister Karim Badawi emphasized plans to encourage increased investment in crude oil and gas production. He highlighted the importance of digital transformation and artificial intelligence in the energy sector.
Egypt plans to drill 110 oil and gas exploration wells in the fiscal year 2024/2025, with a total investment of $1.2 billion. By 2030, the country aims to invest $7.2 billion in drilling 586 exploration wells. Additionally, studies are underway to add another floating storage and regasification unit (FSRU) in Ain Sokhna, utilizing existing liquefaction facilities in Damietta and Idku in reverse.
To attract new investments, Egypt plans to introduce incentives for unconventional reservoirs and prepare a global marketing plan. The country also aims to enhance its digital presence through the Egypt Exploration and Production Portal, making data readily available to partners and offering new areas to international companies.
In line with the development of the petrochemical industry, Egypt plans to boost petroleum product exports from refining and petrochemical projects, aiming to reduce the trade balance deficit and increase exports to $8.6 billion.
To address the financing gap driven by global price increases, exchange rate movements, and reduced selling prices, BP and ADNOC recently established a joint venture focused on developing gas assets in Egypt.
Minister Badawi stressed the importance of rationalizing consumption, increasing production efficiency, and creating a sustainable investment environment. He also emphasized the need to set fair prices for petroleum products.
Egypt is also committed to green economy projects, including producing green ammonia, bioethanol, medium-density fiberboard (MDF) from rice straw, and sustainable aviation fuel (SAF) from used cooking oil. These projects aim to improve energy efficiency and reduce carbon emissions by 2.5 million tons annually by 2030, with an investment cost of $2 billion.
Efforts are underway to secure funding from international institutions for green projects and explore non-traditional financing sources such as carbon certificates.
“I fully appreciate the responsibility placed upon me and the aspirations of the Egyptian people for the petroleum and mineral wealth sector to meet the needs of citizens and various state sectors for energy. Energy is the lifeblood of daily life and the engine of development in Egypt in all its aspects, contributing to the achievement of Egypt’s Vision 2030,” stated Badawi.
Strengthening Renewable Energy Ties with the UAE
Prime Minister Dr. Mustafa Madbouli emphasized Egypt’s focus on expanding its renewable energy portfolio. In collaboration with the UAE, Egypt plans to add 4 GW of renewable energy to the grid by next summer.
In March 2024, the Egyptian government signed seven memoranda of understanding (MoUs) with international developers to establish green hydrogen and renewable energy projects in the Suez Canal Economic Zone (SCZONE), with expected investments of about $12 billion for the pilot phase and approximately $40 billion over ten years.
As part of the EU-Egypt partnership, deals worth €40 billion were concluded during the EU-Egypt Investment Conference in June 2024 to support renewable energy and hydrogen projects.