meed-logo

line1 line2 line3
SIGN IN / REGISTER

Egypt pushes ahead with energy sector plans

23 February 2023

This package on Egypt’s oil and gas sector also includes:

> Egypt gas project due before 2024

> Egypt oil refinery awards water processing contract

> Enppi IPO assessment has not been completed

> Egypt Soda Ash feasibility studies to complete by July

> BP in talks with contractors for Egypt projects

> Consortium makes Egyptian discovery

 

Egypt is pushing ahead with plans in its energy sector amid challenging economic conditions and an ongoing currency crisis.

Cooperation with international energy companies in recent years has helped the country increase its natural gas production and boost revenues. This has enabled it to navigate a difficult economic environment.

Cairo has proved agile when it comes to negotiating exploration and production deals. 

Working with the Italian international oil and gas company Eni, the country has rapidly brought several major gas reservoirs and export facilities online.

This has helped Egypt ramp up production at a time when demand is surging as European countries attempt to find alternatives to Russian oil and gas due to the ongoing war in Ukraine. 

State-owned Natural Gas Holding Company (Egas) and Eni brought Egypt’s Damietta liquefied natural gas (LNG) plant online in 2021 after eight years of the facility being offline.

Earlier this year, Egypt’s oil ministry said that about 4 million tonnes of LNG were exported from the facility in 2022.

This is the largest volume of annual exports the plant has made since it was first commissioned in 2005. About 60 per cent of the exports from the facility went to Europe, according to Egypt’s oil ministry. 

The boom in Egyptian gas exports has given significant support to the wider economy.

In February, the Central Bank of Egypt reported that its balance of payments deficit had declined by 20.2 per cent to $3.2bn in the first quarter of its fiscal year, which runs from 1 July.

The bank said that an increase of $1.7bn in natural gas exports was a key factor in helping to shrink the deficit.

Further exploration

Egypt is continuing to advance its plans to further increase oil and gas exploration activities in the country.

On 1 February, Egypt’s cabinet approved 13 draft agreements between national oil company Egyptian General Petroleum Corporation (EGPC), Egas and several international oil companies. It is hoped that the cabinet approval will pave the way for the oil deals to be finalised.

Under the draft agreements, EGPC will be responsible for oil exploration in areas west of Wadi Natrun, east of Siwa, west of Magharra, west of Abu Gharadiq, east of Alam Saweesh and in the Gulf of Suez.

Egyptian Natural Gas Holding Company will be in charge of natural gas and crude oil exploration in the Mediterranean Sea areas, including north of Fayrouz and Rafah, Tiba and Tabiya, as well as northeast of Arish.

Share sales

The oil ministry is also pushing ahead with changes in other parts of its energy sector. Egypt is preparing to sell shares in about 10 state-owned energy companies, according to statements made by Tarek el-Molla, Egypt’s petroleum and mineral resources minister, earlier this year.

The plan to sell stakes in publicly owned energy companies comes after similar moves have been made by Saudi Arabia and the UAE.

Last year, Saudi Aramco Base Oil Company (Luberef) listed shares on the Saudi Stock Exchange (Tadawul) main market. The initial public offering (IPO) raised $1.3bn, making it the biggest share listing on the exchange in 2022.

Saudi Aramco itself listed in Riyadh in 2019 with a $29bn share offering, the world’s largest on record.

Earlier this year, in the UAE, Abu Dhabi National Oil Company (Adnoc) confirmed that it is planning to proceed with an IPO of a minority stake in Adnoc Gas on the Abu Dhabi Securities Exchange in 2023.

In June last year, Adnoc and Austrian chemicals company Borealis listed the petrochemicals joint venture Borouge on the Abu Dhabi Securities Exchange following the completion of Abu Dhabi’s largest-ever IPO and the Middle East’s biggest-ever petrochemicals listing.

The IPO raised gross proceeds of more than $2bn for the offering of 10 per cent of the company’s total issued share capital. It was the fourth consecutive time that Adnoc broke records with an IPO on the exchange.

If Egypt manages to replicate the successful IPO model that has been used in Saudi Arabia and the UAE, the planned share sales could generate billions of dollars that could be reinvested in the country’s energy sector.

Egypt’s management of its oil and gas sector over the past decade has put it in a position to be able to ramp up energy exports at a time of high demand, unlike other hydrocarbons-producing nations in North Africa such as Libya and Algeria, which have struggled to attract investment.

While Egypt is reaping the rewards of high energy revenues due to its effective management of the sector, future energy projects are under threat due to the plunging value of the Egyptian pound.

The weakness of the country’s currency has made it more difficult for the country to import materials and equipment for projects in line with existing budgets.

This has sparked concerns about delays and even the possible cancellation of major projects that are designed to boost the country’s upstream and downstream capacities.

While this is worrying, the impact of the country’s ongoing economic problems may well be minimised if Egypt continues to effectively manage its oil and gas sector in partnership with international players.

MEED's March 2023 special report on Egypt also includes:

> GOVERNMENT & ECONOMY: Egypt faces up to economic reality

> CONSTRUCTION: Egypt's construction sector faces delays

> POWER: Crisis dampens Egypt’s energy diversification

> WATER: Egypt turns to private sector for water

> BANKING: Interesting times for Egypt’s lenders

https://image.digitalinsightresearch.in/uploads/NewsArticle/10571697/main.gif
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Construction completed for Shuqaiq 4 desalination plant

    11 November 2025

    Construction and commissioning works on Saudi Arabia's Shuqaiq 4 desalination plant have been completed, according to Spain's Acciona.

    Located on the Red Sea coast, the seawater reverse osmosis facility has a capacity of 400,000 cubic metres a day (cm/d) and will provide potable water to about 3.5 million people.

    The main contract for the project was awarded in 2021 by the Saline Water Conversion Corporation to a consortium of Acciona and local partner Al-Rashid Trading & Contracting.

    The facility is located adjacent to the operational Shuqaiq 3 independent water project (IWP), a separate project and Saudi Arabia’s second IWP. 

    The main contract was awarded by Water & Electricity Company – which is now known as Saudi Water Partnership Company (SWPC) – in January 2019 to a team led by Japan’s Marubeni and the local Abdul Latif Jameel.     

    The consortium also comprises Acciona and the local Rawafid Al-Hadarah Holding Company.

    Together, the two plants add nearly 850,000 cm/d of capacity to the national network, including Jizan, Asir and surrounding regions.

    Additionally, SWPC is planning to undertake the construction of the Al-Shuqaiq 4 IWP, including a desalination facility with a capacity of 400,000 cm/d. 

    Almost 40 companies have submitted statements of qualifications. The main contract has yet to be tendered.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15065225/main.jpg
    Mark Dowdall
  • Firms seek to prequalify for Oman waste-to-energy project

    10 November 2025

    Oman’s state offtaker Nama Power & Water Procurement (Nama PWP) has received 18 statements of qualification from international and local companies for the planned waste-to-energy (WTE) project in Barka, South Al-Batinah Governorate.

    The project will be Oman’s first large-scale WTE facility, with a generation capacity of 95MW-100MW.

    According to Nama PWP, the facility will be developed on a 190,000-square-metre site and is scheduled to reach commercial operation in the fourth quarter of 2030.

    US/India-based Synergy Consulting is acting as financial adviser to Nama PWP for the project.

    The plant is expected to contribute 757 gigawatt-hours of renewable energy annually and reduce carbon dioxide emissions by about 302,000 tonnes a year. 

    It will process up to 3,000 tonnes of municipal solid waste a day using grate incineration technology.

    The following companies submitted statements of qualifications:

    • Acwa Power (Saudi Arabia)
    • Al-Ramooz National (Oman)
    • Al-Tasnim Enterprise (Oman)
    • Aspec for Contracting & Environmental Consultancy (Oman)
    • China Communications Construction (China)
    • China Everbright Environment Group (China)
    • China Tianying (China)
    • Eco Vision (Oman)
    • Emirates Waste to Energy (UAE)
    • Eternal Industrial Investment (China)
    • FCC Medioambiente Internacional (Spain)
    • Future Vision Engineering Services (Oman)
    • Horsol Switz Engineering Asia (Singapore)
    • Hunan Junxin (China)
    • Itochu Corporation (Japan)
    • Kanadevia Inova (Switzerland)
    • Keppel Seghers Engineering Co (Singapore)
    • Mohammed Abdulmohsin Al-Kharafi & Sons (Kuwait)
    • NV Besix (Belgium/UAE)
    • Oman National Engineering & Investment (Oman)
    • Paprec Group (France)
    • Satarem America (US)
    • Seven Seas Petroleum (Oman)
    • Shanghai Environment Group (China)
    • Shanghai SUS Environment (China)
    • Shenzhen Energy Group (China)
    • Sinoma Energy Conservation (China)
    • Suez International SAS (France/Oman branch)
    • Veolia Middle East (France)
    • Urbaser (Spain)

    In August, MEED reported that Oman had finally moved to the prequalification phase following attempts to start work on the project to develop a WTE facility for several years.

    In 2019, when it was known as Oman Power & Water Procurement Company, Nama PWP is understood to have started the process to appoint consultants for the project, based on an independent power producer model.

    It later put the project on hold, only to revive the prequalification and procurement process, along with Oman Environmental Services Holding Company (Beah), in 2023.

    Beah will supply the waste feedstock for the project, which is part of a long-term plan to convert municipal waste into energy and reduce landfill dependency, supporting Oman’s net-zero emissions target for 2050.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15058075/main.jpg
    Mark Dowdall
  • WEBINAR: Saudi gigaprojects 2026 and beyond

    7 November 2025

    Webinar: Saudi Gigaprojects 2026 & Beyond
    Tuesday 25 November 2025 | 11:00 GST  |  Register now

    Agenda:

    • Latest update to November 2025 on the gigaprojects programme and the Saudi projects market in general, with full data analysis for 2025 year-to-date
    • Latest assessment on the reprioritisation of the programme and views on which of the gigaprojects are being prioritised
    • Summary of key recent project developments and announcements 
    • Analysis of key contracts awarded this year to date
    • Highlights of key contracts to be tendered and awarded over the next six months
    • Key drivers and challenges going forward plus MEED’s outlook for the future short and long-term prospects of the gigaprojects programme
    • In-depth look at the recently announced King Salman Gate gigaproject and other planned, but unannounced PIF developments
    • Life beyond the gigaprojects – what other key project programmes are being implemented in the kingdom 
    • Q&A session

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15045990/main.gif
    Edward James
  • Bahrain advances utility reform

    7 November 2025

     

    In September, Bahrain’s government referred a draft law to parliament to restructure the kingdom’s electricity and water sector.

    This proposes dissolving the Electricity & Water Authority (Ewa) and transferring its assets and functions to a newly established National Electricity & Water Company, which will operate under the oversight of the Electricity & Water Regulatory Authority. 

    The reform marks the first full structural overhaul of Bahrain’s utilities sector in nearly two decades and signals a shift towards a more commercially driven model. 

    Regulatory and operational roles would be separated for the first time, allowing private sector participation under transparent licensing and tariff systems, aligning Bahrain with utility reforms seen in Saudi Arabia, Oman and the UAE.

    It comes amid a relatively subdued year for new contracts that broadly falls in line with 2024’s performance. Most significantly, Bahrain continues to move towards its two upcoming utility public-private partnership (PPP) schemes, the Sitra independent water and power project (IWPP) and the Al-Hidd independent water project (IWP).

    In August, a developer tender was issued for the main works package for the Sitra IWPP. This followed the prequalification of seven companies and consortiums, reflecting a wide range of international interest.

    The planned Sitra IWPP replaces the previously planned Al-Dur 3 and will be the first IWPP project to be awarded since the 1,500MW Al-Dur 2 IWPP was completed in 2021.

    The combined-cycle gas turbine (CCGT) plant is expected to have a production capacity of about 1,200MW of electricity, while the project’s seawater reverse osmosis (SWRO) desalination unit will have a production capacity of 30 million imperial gallons a day (MIGD) of potable water. The main contract is expected to be awarded by the end of the year, with commercial operations set for 2029. 

    A developer tender was also recently launched for Bahrain’s first independent, standalone SWRO plant following a prequalification process that shortlisted nine companies and consortiums.

    The Al-Hidd IWP is expected to have a production capacity of about 60MIGD of potable water and be completed in 2028. It is likely to be the last IWPP for Bahrain, which aims to reach net-zero carbon emissions by 2060.

    The imminent launch of the two projects boosts Bahrain’s projects pipeline, which has experienced muted growth in the aftermath of the Covid-19 pandemic, carried by relatively small-scale projects.

    Solar PV projects

    The creation of the National Electricity & Water Company as Bahrain’s new operational entity could also support the rollout of future renewable energy schemes. 

    As a corporatised offtaker, the company will be able to enter long-term power purchase agreements (PPAs) with private developers under a more bankable framework. Currently, these are negotiated by Ewa on a case-by-case basis.

    The government recently signed a 123MWp solar PPA with the UAE’s Yellow Door Energy, highlighting growing private sector interest in the market. The project includes the world’s largest single-site rooftop solar installation and will be developed at Foulath Holding’s industrial complex in Salman Industrial City.

    Bahrain has already set a target to source 20% of its energy from renewables by 2035 and reach net-zero emissions by 2060.

    In October, Ewa also issued a tender for the development of the Bilaj Al-Jazayer solar independent power project (IPP). The planned 100MW project will be developed on a build-own-operate basis with a 25-year contract term.

    In parallel, Bahrain is broadening its long-term energy strategy beyond solar. In July, the kingdom signed a cooperation agreement with the US on the peaceful use of nuclear energy, aimed at advancing research and potential deployment of small modular reactor (SMR) technology.

    For countries like Bahrain, which has limited land availability and high energy demand growth, SMRs could offer a way to produce low-carbon, reliable baseload power without requiring vast areas of land for solar or wind farms. 

    Officials have indicated that SMRs, along with floating solar solutions, are being studied as part of a broader push to diversify energy sources and expand renewable generation capacity.

    Water and waste

    Bids for four Ewa-owned projects are currently being evaluated. This includes the construction of a new SWRO desalination plant on Hawar Island and rehabilitation works for the Ras Abu Jarjur water treatment plant in Askar. Contracts for both projects are expected to be awarded this year.

    Bahrain’s Ministry of Works (MoW) is the other client for the island-state’s power and water infrastructure-related projects. It has awarded three smaller sewage-related contracts this year.

    It is also preparing to tender the construction of a $130m sewage treatment plant in Khalifa City, which will be developed in two phases. Meanwhile, the construction of MoW’s sewerage scheme phase 2 network in Bahrain remains in the early design stage with no further updates.

    As Bahrain moves ahead with these projects, the new electricity and water law could define how future investments are structured, regulated and financed. This could reshape the kingdom’s utilities landscape for decades to come.

    MEED's December special report on Bahrain also includes:

    > ECONOMY: Bahrain’s cautious economic evolution
    > BANKING: Mergers loom over Bahrain’s banking system
    > OIL & GAS: Bahrain remains in pursuit of hydrocarbon resources
    > CONSTRUCTION: Bahrain construction faces major slowdown
    > TRANSPORT: Bahrain signs game-changer aviation deal with Air Asia

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15044915/main.gif
    Mark Dowdall
  • Masdar and OMV sign 140MW green hydrogen plant deal

    7 November 2025

    Register for MEED’s 14-day trial access 

    Abu Dhabi Future Energy Company (Masdar) has signed a binding agreement with Austrian energy company OMV to develop and operate a major green hydrogen production plant in Austria.

    The 140MW green hydrogen electrolyser plant will be Europe's fifth-largest hydrogen plant, according to Masdar chairman, Sultan Ahmed Al-Jaber.

    It will be built in Bruck an der Leitha, about 40 kilometres southeast of Vienna.

    The facility will be developed under a newly established joint venture, in which Masdar owns 49% and OMV holds the majority 51% stake.

    The agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec), in the presence of Al-Jaber; Austria’s Federal Minister of Economy, Energy and Tourism, Wolfgang Hattmannsdorfer; OMV CEO Alfred Stern; and Masdar CEO Mohamed Jameel Al-Ramahi.

    It is expected that the project will reach financial close in early 2026, subject to final documentation, shareholder consent and regulatory approvals.

    Construction began in September, with operations scheduled to start in 2027.

    OMV, which already operates a 10MW electrolyser in Schwechat, will procure renewable electricity for hydrogen production and retain ownership of the output.

    Several large-scale hydrogen facilities across Europe are currently under construction.

    In 2024, Germany's Siemens Energy signed a deal with German utility EWE to build a 280MW green hydrogen electrolysis plant. This is expected to begin operations in 2027.

    Masdar and OMV previously signed a letter of intent to cooperate on green hydrogen, synthetic sustainable aviation fuels (e-SAF) and synthetic chemicals in both the UAE and central and northern Europe.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15040802/main0933.jpg
    Mark Dowdall