Egypt has opened the bidding for the development of the Satis gas field, located in the northern Mediterranean, as part of efforts to expand its natural gas output and strengthen its position as a key energy supplier to Europe. The Satis field, part of the larger North El-Burg site, was previously operated by British oil giant BP in partnership with Egypt’s state-run Egyptian Natural Gas Holding Company (EGAS). BP, however, exited the project after the contractual development period ended without production starting.
The Satis field, with estimated reserves of over 1 trillion cubic feet of high-quality natural gas, comes at a crucial time as Europe seeks to reduce its dependency on Russian energy sources following the invasion of Ukraine in February 2022. Egypt has become a vital alternative for the European Union in securing reliable gas supplies, particularly liquefied natural gas (LNG), thanks to its operational LNG export facilities and strategic geographical location near key maritime chokepoints such as the Suez Canal.
Despite its potential, Egypt’s energy sector faces significant financial challenges. The country’s gas ambitions have been hampered by a mounting debt to international energy companies. For instance, Egypt owes over $1.25 billion to Italian energy firm Eni for gas development projects. The country’s currency devaluation, exacerbated by the war in Ukraine, has further strained its ability to settle these debts. However, Egypt recently secured expanded financial support from the International Monetary Fund (IMF) and is working with the World Bank and the European Union to stabilize its economy.
Egypt’s Petroleum Minister Karim Badawi recently reviewed several ongoing foreign energy projects aimed at increasing output. Among these is a joint venture with Shell, which plans to bring new gas wells into production by the end of 2025. Additionally, Eni is focusing on expanding production in the Western Desert and Sinai, as well as enhancing output from the giant Zohr gas field, with plans for further drilling in 2025.
The Satis field is expected to attract new bidders, given its strategic importance and Egypt’s ambitious plans to become the top gas exporter in the Eastern Mediterranean. Along with its 1.8 trillion cubic meters of gas reserves, Egypt controls vital energy infrastructure, including the Suez-Mediterranean Pipeline and the Suez Canal, through which 10 percent of the world’s oil and LNG pass. This geopolitical leverage has made Egypt a key player in global energy markets, especially as Western countries seek to counterbalance the growing influence of China and Russia in the Middle East.
For the West, Egypt’s role as a regional energy hub is becoming increasingly crucial. Egypt has long been regarded as a leader in the Arab world, a status it has maintained since the era of President Gamal Abdel Nasser. With the U.S. and European allies seeking to bolster ties with Egypt, the country’s energy and geopolitical influence are set to play a central role in reshaping the Middle East’s alignment in the post-Ukraine conflict world.
As bidding for the Satis field opens, Egypt’s ability to overcome its financial hurdles and maintain its energy development momentum will be critical in meeting the growing demand for gas in Europe and beyond.
