October 29, 2024
Cairo, Egypt – In a significant policy shift, Egypt has lowered its renewable energy target for 2040 from 58% to 40%, opting instead to concentrate on natural gas to meet rising energy demands. Karim Badawi, the country’s petroleum minister, announced this decision as part of efforts to address an ongoing electricity crisis.
Originally, Egypt aimed for a 42% renewable energy mix by 2035, a goal set before hosting the COP27 climate conference in 2022. However, this target was revised to 58% in June, a figure now deemed unfeasible as the government grapples with economic challenges.
As the world’s 11th-largest natural gas producer, Egypt has emerged as a key supplier of liquefied natural gas (LNG) to Europe, with exports reaching nearly 9 billion cubic meters in 2022, generating $8.4 billion in revenue. Despite these figures, the country faces declining domestic gas output, particularly from the Zohr field, which has seen production drop to less than 20 billion cubic meters—40% below capacity.
Egypt’s total gas production decreased from 67 billion cubic meters in 2022 to an estimated 56 billion cubic meters in 2024. To meet demand, the nation has turned to imports, purchasing over 50 LNG cargoes this year and planning to tender for up to 20 more for early 2025.
Badawi has expressed intentions to restore natural gas production to normal levels by June 2025, with plans to enhance output at Zohr by drilling new wells in the first quarter of 2025. He has also been working to rebuild relationships with foreign oil and gas companies, addressing past arrears that had hindered operations and contributed to gas shortages.
At the recent Mediterranean Energy Conference, Badawi emphasized the need for collaboration to boost discoveries and attract investment in Egypt’s natural gas sector, which holds significant untapped potential.
