Egypt is preparing to announce two new natural gas discoveries in 2026, in a move that could strengthen its energy security and accelerate a gradual recovery in domestic production, according to a government official familiar with the matter.
The expected finds, linked to Shell and BP, are estimated to hold between 1 trillion and 2 trillion cubic feet of natural gas each, the official said, requesting anonymity due to the sensitivity of the discussions.
The anticipated discoveries follow a recent announcement by Eni, which earlier this month revealed a gas and condensate field in the eastern Mediterranean’s Tamsah concession. The find is estimated at roughly 2 trillion cubic feet of gas and 130,000 barrels of condensates, highlighting renewed exploration success in the region.
Located approximately 70 kilometers offshore and close to existing infrastructure, the new fields are expected to be developed rapidly, allowing Egypt to bring production online as early as 2027, or by early 2028 at the latest.
Officials say the reservoirs share characteristics with the nearby Tamsah field, a long-producing asset known for its high-quality sandstone formations, with net pay thickness reaching around 50 meters.
The discoveries align with Egypt’s broader strategy to rebuild reserves and boost output after a period of declining production that forced the country to increase imports of liquefied natural gas (LNG) starting in 2024 to meet surging electricity demand.
According to data from the Egyptian Ministry of Petroleum and Mineral Resources, natural gas production is projected to rise by 7.3% in fiscal year 2025/26, reaching 4.4 billion cubic feet per day, up from 4.1 billion in the previous year.
The recovery is expected to gather pace over the following years, with output forecast to climb to 5.09 billion cubic feet per day in 2027/28 and continue rising to 5.56 billion cubic feet per day by 2029/2030.
These projections suggest a turning point for Egypt’s gas sector after a challenging period marked by supply shortages and increased reliance on imports, including expanded LNG procurement and the leasing of multiple regasification units.
Minister of Petroleum and Mineral Resources Karim Badawi said the government is focused on restoring investor confidence by settling outstanding dues to international oil companies and encouraging fresh capital inflows.
“The priority is to incentivize companies to step up investment in existing fields, improve reservoir management, and intensify exploration activities across Egypt,” Badawi said in recent remarks.
Efforts are also underway to deepen regional energy cooperation, while expanding exploration in promising areas such as the Mediterranean and the Red Sea.
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