Egypt discusses importation of Qatari natural gas

14 May 2025

Egypt is exploring partnerships with Qatar to import natural gas in order to meet domestic demand, according to a statement.

Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi met with Qatar’s Minister of State for Energy Affairs Saad Bin Sherida Al-Kaabi to explore ways to accelerate the implementation of joint natural gas projects, the statement said.

The two sides discussed signing long-term contracts to supply natural gas from Qatar to meet local needs.

They also discussed enhancing cooperation in energy infrastructure to achieve common interests, given both countries’ potential in liquefied natural gas (LNG) trading and liquefaction and regasification activities.

Separately, the potential to boost cooperation in research and exploration to expand production capacity from QatarEnergy’s concession areas in Egypt was discussed.

The two ministers discussed the latest developments in QatarEnergy’s drilling plans, particularly in Egypt’s Nefertari, Cairo and Masry regions.

Al-Kaabi expressed QatarEnergy’s interest in expanding operations and increasing investments in research and exploration in Egypt.

Recently, QatarEnergy, the Egyptian Natural Gas Holding Company (EGAS) and Chevron agreed to a deal that will see QatarEnergy acquire some of Chevron’s stake in the North El-Dabaa offshore block.

During the meeting, Badawi and Al-Kaabi discussed potential investment opportunities in Egypt’s oil, gas and petrochemicals sectors.

In February, MEED revealed that the total value of active Egyptian gas projects had fallen by 79% since the start of 2019.

The decline comes amid a steep drop in domestic gas output, which has increased the need for costly imports.

At the start of 2019, the total value of active gas projects in Egypt was $41.5bn. By February this year, it had sunk to $8.6bn, according to data from regional project tracker MEED Projects.

Despite the billions of dollars of investment in upstream projects in Egypt’s gas sector in recent years, production has been dropping since it peaked in 2021, according to the Energy Institute’s Statistical Review of World Energy.

In 2021, Egypt produced 67.8 billion cubic metres (bcm) of gas. This fell to 64.5 bcm in 2022 and 57.1 bcm in 2023.

In May 2024, Egypt’s domestic gas output hit a six-year low, down by about 25% from its 2021 peak.

Declining domestic production has led to a severe energy shortage in Egypt.

Last year, the North African country had to resort to load-shedding to keep its grid functioning amid a lack of gas supply and rising demand, while the deepening energy crisis strained Cairo’s budget as it grappled with a heavy subsidies bill.

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Wil Crisp
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