Egypt is preparing to develop its largest gas drilling programme in the Mediterranean, with drilling set to begin at the West Meina offshore field in North East Amriya. At a recent inspection, Petroleum and Mineral Resources Minister Karim Badawi toured Shell’s new offshore operations and the STENA ICEMAX drillship, where the first production well is expected to begin initial output by the end of 2026, at approximately 160 million cubic feet per day (MMcf/d) of gas and 1,900 barrels of condensate.
Shell holds a 60% stake in the development, alongside Kuwait Foreign Petroleum Exploration Company (40%), and the wells will be tied back to existing infrastructure in the West Delta Deep Marine concession. The 2026 campaign also includes the Sirius exploration well in North East Amriya and the Philox well in the Herodotus Basin, signalling frontier expansion, not incremental maintenance.
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In framing the national imperative, Minister Badawi, noting the collaborative nature of the Egyptian energy leadership, made it clear that such investments are not occurring in a vacuum. They are a direct response to national energy security goals. “Our focus is increasing production capacity, reducing import dependency, and ensuring domestic supply reliability,” the Minister stated.
In early 2026, Egypt has entered a period of cautious macroeconomic stabilisation, marked by sharply cooling inflation (down to ~13% from a 2023 peak of 38%), a record-low unemployment rate of 6.2%, and solid GDP growth of 5.3% in the first quarter. This stability is underpinned by robust foreign reserves of $50.22 billion and a 42% surge in remittances, signalling renewed expatriate confidence. With a PPP-adjusted GDP of approximately $3.086 trillion, the economy is pivoting from state-led infrastructure spending toward productivity-driven growth in manufacturing and ICT, a transition in which natural gas development plays a central role.
Following a sharp decline in production from mature fields, including the flagship Zohr field, Egypt transitioned back to a net LNG importer in 2024–2025, causing LNG imports to surge by nearly 188% in the first 11 months of 2025 to avert power cuts and driving the petroleum import bill up by over 50% year-on-year. In response, the 2026 Mediterranean drilling programme is designed to restore self-sufficiency, reduce foreign currency outflows, reclaim export credibility, and anchor domestic industrial growth.
The strategy appears to be resonating beyond government circles. Dalia El Gabry, Chair of Shell Egypt, offered a succinct endorsement of the country’s direction. “The return of strong foreign investment to the Egyptian petroleum sector demonstrates growing investor confidence,” she stated. Confidence, in Egypt’s case, translates into foreign currency, jobs, and balance-of-payments stability.
Egypt’s journey with natural gas has been marked by dramatic cycles of boom and bust. Following early discoveries like Abu Madi in the 1960s, the country built a robust domestic infrastructure, becoming an exporter in the early 2000s. However, rampant domestic consumption fueled by subsidies led to a supply crisis, and by 2014, Egypt had become a net importer. The discovery of the supergiant Zohr field in 2015 reversed this decline, restoring self-sufficiency and allowing exports to resume, which in turn enabled Cairo to leverage its resources diplomatically through initiatives like the East Mediterranean Gas Forum (EMGF).
Gas is a fundamental pillar of Egypt’s economic stability, impacting the country through several measurable channels. It is the primary fuel for electricity generation and essential for key industries like cement and petrochemicals. The sector drives foreign direct investment, supports jobs, and is critical to the nation’s fiscal health. By fueling non-oil manufacturing growth and providing LNG for export, the gas industry directly influences Egypt’s foreign currency reserves and its ability to meet commitments under its IMF reform programme.
Egypt is positioning itself for a return to global leadership by leveraging its unique advantages. With the largest domestic market in the region, strategic proximity to Europe, and the only operational LNG terminals in the Eastern Mediterranean, Cairo possesses a hybrid model that offers strategic flexibility. The success of the 2026 drilling programme is crucial; if it can boost production by a projected 30%, Egypt could restore its net export capacity, stabilise its currency, and solidify its position as Africa’s most strategically positioned gas hub.
