Egypt Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in egypt, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Oil and Gas Equipment
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Overview

The oil and gas industry is one of the most dynamic economic sectors in Egypt. Hydrocarbon production is by far the largest single industrial activity in the country with the growth rate of oil refining at 3.8 percent in 2022. The Egyptian government oversees the oil and gas sector.

Egypt has significant energy resources, both in traditional fossil fuels and in renewable energy. The country’s proven hydrocarbon production stood at 1.4 million barrels of oil equivalent per day (mmboe/d) and 64.5 trillion cubic feet (tcf) of natural gas at the end of 2024. The Egyptian government encourages international oil companies (IOCs) to participate in the oil and gas sector; more than 50 IOCs are currently operating in the country at present.

Egypt plays a vital role in international energy markets through the Suez Canal and the Suez-Mediterranean (SUMED) pipeline. Expanded in 2015, the Suez Canal is an important transit route for oil and liquefied natural gas (LNG) shipments traveling southbound from North Africa, Europe, and North America to Asia. Fees collected from the operation of these two transit points are significant sources of hard currency revenue for the Egyptian government.

Egypt plans to invest around $7 billion to develop its petrochemicals sector over the next four years and is currently working on projects worth $9 billion. The petrochemical sector represents about 12 percent of industrial production and generated revenues totaling $8.6 billion in 2024 compared to $7 billion in 2021, equivalent to nearly 2 percent of GDP. In 2024, Egypt produced 4.5 million tons of petrochemicals, increasing the revenue of the Egyptian Petrochemicals Holding Company (ECHEM) by 90 percent to reach over 3.6 billion Egyptian pounds ($116 million). Egypt has the highest refining capacity in Africa at a nominal rate of 840,000 barrels per day (bpd), although it is well below this capacity with 600,000 bpd processed in 2024. Currently, the government is working on upgrading its refineries and developing new ones with a total of $7.5 billion allocated for the refining sector across four main projects worth $6.4 billion. As part of the development projects, there has been a 95 percent increase

The initiative to convert diesel cars to CNG began in early 2021. Over the past year, Egypt has seen an increase in compressed natural gas (CNG) stations—from 688 to 800 through March 2025. The Egyptian government’s aim is to reach 1,200 stations by the end of 2025. Between June 2022 and March 2025, 60,000 cars converted to CNG, for a total of 500,000 cars. The number of converted cars is expected to reach 800,000 by the end of 2025. It is expected that CNG usage will increase by 70 percent to 55 million tons, and petroleum products will see a 40 percent increase in usage.

The petroleum industry in Egypt is managed by the Ministry of Petroleum and Mineral Resources, under which five state-owned companies operate:

  • The Egyptian General Petroleum Corporation (EGPC)
  • The Egyptian Natural Gas Holding Company (EGAS)
  • The Egyptian Petrochemicals Holding Company (ECHEM)
  • The Ganoub El-Wadi Holding Company (GANOPE)
  • The Egyptian Mineral Resources Authority (EMRA)

Since the 1990s, the Egyptian government has enacted laws aimed at attracting international, regional, and domestic investment. These laws seek to address regulations and procedures that hinder production and inward facilitated investment.

One of the challenges that continues to hamper international investors in Egypt’s oil and gas sector is the long history of delayed payments from EGPC. The government has tried to pay out the remaining backlog of arrears to IOCs to encourage more foreign partners to invest in exploration and development activities. However, due to the shortage of foreign currency, the outstanding arrears have increased from $850 million in 2020 to $3.5 billion in 2025.

Apache (APA Corporation) announced that it was planning to invest around $1.4 billion in Egypt in 2024. Chevron and ExxonMobil have expanded their operations in Egypt, with Chevron drilling the Khendjer-1 well in the North El Dabaa block, and ExxonMobil starting operations in the North Marakia Offshore Concession, including the Nefertari-1 well, which has shown promising gas-bearing reservoirs. VAALCO, which acquired the Canadian owned TransGlobe in 2022, also has a presence in the Egyptian market.

In support of its ambitions to become a regional energy hub, Egypt launched the East Mediterranean Gas Forum (EMGF) in January 2019. The seven founding members – Egypt, Israel, Italy, Greece, Cyprus, Jordan, and the Palestinian Authority – met in January 2020 to initial the EMGF’s draft charter, bringing it one step closer to becoming an official international organization. The United States is an observer in the EMGF. Egypt is capitalizing on its strategic location, well-developed energy infrastructure, and large gas reserves in the Eastern Mediterranean, including its Zohr field, to consolidate its position as a regional energy hub. In a deal estimated at $15 billion, a consortium of Houston-based Noble Energy, Israel’s Delek Drilling, and Egypt’s Dolphinus Holdings Ltd started pumping natural gas from the Tamar and Leviathan fields in Israel to Egypt in early 2020. In addition, Egypt has concluded an intergovernmental agreement with Cyprus to build a sub-sea pipeline between the two countries. Egypt plans to use imported gas for domestic use and re-export to global markets through its two LNG facilities on the Mediterranean coast.

In December 2017, Egypt’s Zohr gas field started production. With an estimated reserve of 30 trillion cubic feet (tcf), the Zohr field is the largest gas discovery in the Mediterranean to date. In August 2019, the processing capacity of Zohr reached over 2.7 billion cubic feet per day (bcfd), five months ahead of schedule. The Nooros Gas Field in the Nile Delta produces 32 million cubic meters per day. The Atoll gas field in the East Delta produces 350 million cubic meters per day and 10,000 barrels of condensate.

The Egypt Energy Show (EGYPES) is the largest oil and gas exhibition in North Africa and the Mediterranean region. The trade exhibition enables Egypt to showcase the development and modernization of its oil and gas sector and its emergence as a regional energy hub, both elements of its sustainable development strategy for 2030. EGYPES hosts hundreds of exhibitors, including major international oil and gas companies and dozens of country pavilions under one roof. In 2025, the show attracted more than 25 American companies as exhibitors and conference participants.
 

Leading Sub-sectors

  • Compressed Natural Gas (CNG) Technology and Peripherals
  • Drilling Rigs and Related Equipment and Accessories
  • Hi-tech Testing and Measuring Equipment
  • Liquefied Natural Gas (LNG) Related Technology
  • Natural Gas Vehicles (NGV) Technology and Peripherals
     

Opportunities

In 2025, The Ministry of Petroleum and Mineral Resources announced an ambition plan that consists of:

  • Exploration & Production Boost: Egypt aims to intensify exploration, especially in the Mediterranean and Nile Delta, with 12 new blocks offered in recent bid rounds.
  • Investment Incentives: A new package was introduced in August 2024 to encourage foreign investment, including mechanisms tied to exceeding current production levels.
  • Debt Resolution: The government has begun settling arrears to international oil companies, paying off 20–25 percent of outstanding debts to restore investor confidence.
  • Petrochemical Expansion: A $7 billion petrochemical complex is underway in New Alamein City, expected to produce 3.1 million tons annually of eight different products.
  • Gas Development Projects: For FY 2025/2026, Egypt plans to implement seven gas field projects and drill 24 new wells, targeting an initial output of 630 million cubic feet/day of gas.
  • Digital Transformation: The Egypt Upstream Gateway (EUG) platform continues to streamline bidding and data access for investors.

The Ministry of Petroleum and Mineral Resources, in collaboration with the Ministry of Electricity and Renewable Energy, is actively advancing a green energy strategy to shift the focus from hydrocarbon resources to decarbonization, energy efficiency, and renewable projects. Key achievements include over 22 completed projects to utilize flare gases, resulting in a reduction of over 1.2 million tons of carbon dioxide annually.

The Ministry is also working currently on developing a “methane roadmap” to reduce emissions. Recent collaborations with American companies have introduced advanced methane detection technology and innovative solutions to mitigate greenhouse gases. These initiatives aim to align with Egypt’s ambitious decarbonization goals and international net zero targets. Gas flaring solutions attracted the attention of several IOCs that are trying to abide by international laws and net zero targets.

Downstream Performance and Energy Efficiency

More than 20 projects have been identified to improve their performance and energy efficiency. The Ministry has started feasibility studies for around eight projects, and the projects are expected to generate more than $140 million in savings. Initiatives to reduce energy consumption have identified low-cost opportunities, such as waste heat recovery and flare gas recovery.

Upstream Performance

Egypt wants to increase oil and gas production, expand proven reserves, and improve recovery rates and cost performance. The Ministry is particularly focused on enhancing production through digitalized well monitoring and performance optimization in new exploration areas like the Western Desert.

Oil and Gas Hub Strategy

Egypt aims to expand its role in the regional energy sector. Its hub strategy, which includes collaborations with regional partners such as Israel and Cyprus, now integrates long-term LNG re-export initiatives.

Decision Support and Data Flow

Egypt plans to increase the digitalization of reporting and decision-making processes across the sector. The Ministry of Petroleum and Mineral Resources recently updated its Digital Upstream Gateway to enhance accessibility for current and prospective investors, facilitating transparent concession bids.

Competitive Landscape

There is competition and the procurement system operates through open government tenders. Decision-makers evaluate proposals according to their technical and commercial merits.

Best Prospects for U.S. Exporters

There are opportunities for American companies in exploration activities, subcontracting, procurement, and engineering services, as well as in the petrochemical sector:

  • Compressed Natural Gas (CNG) Technology and Peripherals
  • Liquefied Natural Gas (LNG) Related Technology
  • Natural Gas Vehicles (NGV) Technology and Peripherals
  • Exploration activities
  • Engineering, Procurement, and Construction (EPC)
  • Methane Abatement
  • Decarbonization
  • Gas Flaring Solutions
  • Petrochemical projects
  • Refinery upgrades
  • Energy efficiency
  • Port upgrades
  • HSE (health, safety, and the environment)
  • Advanced technologies in enhancing oil recovery.
  • Mining
     

Market Entry

The Ministry of Petroleum and Mineral Resources is open to suggestions and recommendations, new technologies, and processes.

Tenders: The Ministry will announce tenders if it is requesting consultants for feasibility studies, EPCs (engineering, procurement, and construction services), new concessions, upgrades of refineries, licensing for petrochemicals, and other related projects. The Ministry may also award concessions directly.

Technical Barriers & Tariffs

Egypt has a free trade agreement with Europe, which makes products from European suppliers very competitive as there are no customs duties applied. Higher customs fees and shipping costs can put American products at a disadvantage.

Procurement & Tenders

Tenders are announced on the Ministry of Petroleum and Mineral Resources website. Any entity that wishes to be notified of current tenders needs to register the company with the Egyptian General Petroleum Corporation (EGPC).

Upcoming Trade Events

  • EGYPS Egypt Energy Show 2026 (March 30 - April 1, 2026)
     

Resources

For more information on the Oil and Gas Sector, contact:

Dina Bissada
Commercial Specialist
U.S. Embassy Cairo

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