Cairo: Egypt's Minister of Petroleum and Mineral Resources, Karim Badawi, announced that the Egyptian Natural Gas Holding Company (EGAS) is striving to boost its natural gas production by an additional 250 million cubic feet per day from the Zohr and West Mina fields in the Mediterranean before the end of this year.
According to State Information Service Egypt, the ambitious target also includes augmenting output by approximately 80 million cubic feet per day from the fields in the Western Desert's Meleha area by the end of September, following the completion of the second phase of the gas processing plant. Badawi made these remarks during the general assembly meeting of EGAS, where the company's results for the 2025-2026 fiscal year were approved. He emphasized ongoing efforts to enhance domestic natural gas production through the development of existing fields, expansion of exploration activities, and swift development and connection of new discoveries to the production framework.
The minister highlighted the importance of completing payments to investment partners to foster a conducive environment for new investments in exploration and field development. He underscored that restoring partners' confidence has revitalized investment activities and prevented further declines in production, which would have otherwise increased the burden of gas imports. Badawi pointed out the significant investment required for deep-water operations in the Mediterranean, citing the $95 million drilling cost of the Velox-1X well in the Western Mediterranean as an example.
He stressed the necessity of expediting the conversion of new discoveries into production according to specific timelines for field development and exploration drilling. Moreover, Badawi praised the collaboration between EGAS and the Egyptian General Petroleum Corporation (EGPC) in implementing the Meleha processing plant project, emphasizing the importance of production-enhancement projects to counteract natural declines and support a gradual return to production growth.
The minister outlined increasing domestic production as a crucial strategy for reducing the gas import bill and securing local needs, noting that fulfilling the requirements of citizens and the country's productive and service sectors is a top priority for the petroleum sector. Ensuring a steady supply of natural gas has also helped maintain regular fuel supplies to the electricity sector during the summer, despite high temperatures and global energy market challenges.
Reliable gas supplies are vital for supporting industry, boosting production and exports, attracting new investment, and maximizing the economic value of gas through industrial activities. Badawi commended the EGAS and GASCO teams, along with workers at the national gas network control center, for their efforts in securing supplies during the summer and their ongoing collaboration with the Ministry of Electricity and Renewable Energy.
The minister also discussed plans to use the infrastructure and storage capacity of the Damietta liquefied natural gas plant to enhance supply flexibility during high-demand periods. Regarding the expansion of natural gas connections to homes, Badawi emphasized that supporting connection plans would be a state priority, offering greater convenience and quality for consumers while reducing the consumption of liquefied petroleum gas cylinders and the import bill.
He called for cooperative efforts with governorates, in coordination with the ministries of Local Development and Environment, to improve emergency preparedness, protect gas pipelines during excavation work, and prevent encroachments. He also called for ongoing inspection campaigns to ensure compliance with occupational health and safety, protect workers, enhance operational safety, and prevent major accidents.
EGAS Managing Director and Executive Chairman Sayed Selim reviewed the company's key results for the 2025-2026 fiscal year, reporting intensified exploration, drilling, and field development activities aimed at maximizing gas resources and increasing production. Selim announced the awarding of four new exploration blocks in the Mediterranean and Delta, with investments nearing $200 million for drilling nine wells. Additionally, five new gas exploration agreements were finalized with investments of $240 million to drill 14 exploration wells, along with a development contract for the North Atoll field with Arcius Energy.
Selim reported nine new discoveries, including eight gas discoveries and one oil discovery, adding around 2.8 trillion cubic feet to gas reserves. Three new gas exploration wells are currently being drilled, scheduled for completion before the year's end. The company identified 16 new gas exploration opportunities, comprising seven offshore and nine onshore prospects, with 16 wells planned during the current fiscal year targeting resources estimated at around 6 trillion cubic feet.
The results of the seismic survey project in the Western Mediterranean have attracted new investments from TotalEnergies and Chevron, while EGAS is preparing to launch a seismic survey project in the Eastern Mediterranean next October. The company completed 3D seismic surveys covering 307 square kilometers in EGAS exploration areas and a 4D seismic survey covering around 2,307 square kilometers in the deepwater areas west of the Nile Delta in the Mediterranean.
EGAS also implemented nine gas field development projects, connecting 28 new wells to the production network, with investments totaling $1.12 billion. An international bidding round for gas exploration was launched in eight areas across the Mediterranean, the Delta, and North Sinai. To meet domestic market needs, the company supplied 100% of the fuel requirements for the electricity sector throughout the year.
Natural gas was connected to 804,000 housing units during the year, bringing the total number of units served by natural gas to around 16.2 million, benefiting approximately 69 million people and reducing LPG cylinder consumption. The natural gas service was extended to 58 new areas nationwide for the first time. Under the presidential "Decent Life" initiative, the gas connection plan covers 829 villages, with gas already supplied to 690 of them. Work on the remaining villages will resume after the completion of wastewater networks.
Selim stated that projects worth 14 billion Egyptian pounds were implemented to strengthen and upgrade the national gas transmission network, enhancing its capacity to meet the needs of state sectors and consumers.