Cairo — Egypt plans to restore its natural gas production to normal levels by June 2025, according to Prime Minister Mostafa Madbouly. The country has recently become a net importer of gas, a significant shift for a nation that previously positioned itself as a key LNG supplier to Europe.
The decline in output from the Zohr gas field, Egypt’s largest and developed by Italy’s Eni, has been a primary factor in this reversal, leading to daily blackouts and the resumption of LNG imports. This year, Egypt has purchased over 50 LNG cargoes to meet rising domestic energy demands.
Madbouly attributed the drop in local production to outstanding debts owed to foreign production companies, which have hindered investment in exploration and production. While he did not specify the total debt, analysts estimate it to be around $6 billion. In June, the government paid off $1.3 billion of these arrears, roughly 25% of the backlog.
This payment followed a substantial capital influx from the UAE for the Ras El-Hekma development and support from institutions such as the IMF. Earlier in March, the Egyptian government cleared about $1.5 billion, or 20% of the owed amounts.
Zohr gas field, which previously accounted for around 40% of the country’s total gas production, is currently yielding less than 20 billion cubic meters of gas. The reasons for this decline remain unclear, with speculation about both technical issues and insufficient investment.
Eni expressed confidence in recovering the outstanding dues in discussions with the authorities, indicating a potential path toward stabilizing Egypt’s gas output in the future.
