Egypt has recently adjusted its renewable energy target for 2040 to 40%, a decrease from the previous goal of 58%, according to Petroleum Minister Karim Badawi. Despite this shift, Egypt remains committed to natural gas as a significant part of its energy mix for the foreseeable future.
In preparation for hosting the COP27 climate summit in 2022, Egypt initially committed to increasing renewable energy production to 42% of its energy mix by 2035, with plans to accelerate this target to 2030. In June 2024, the then-Electricity Minister Mohamed Shaker announced an ambitious goal of reaching 58% renewable energy by 2040, which has now been revised.
During the opening session of the Mediterranean Energy Conference 2024, Badawi emphasized the importance of collaboration to boost discoveries and attract investments in exploration. The focus is on unlocking new sources of wealth, particularly in natural gas reserves within the region.
Despite the push towards renewable energy, Egypt is maintaining its reliance on fossil fuels, particularly natural gas. This strategic decision comes as the country aims to rebuild relationships with foreign oil companies, whose activities slowed due to a shortage of hard currency that resulted in significant arrears.
Since assuming office in July, Badawi has engaged with various international energy firms, such as Italy’s Eni, which is set to commence drilling new wells in Egypt’s largest gas field, Zohr, in early 2025 to enhance production levels.
Zohr gas field previously achieved a peak production of 3.2 billion cubic feet per day (bcf/d) in 2019, allowing Egypt to transition into a net gas exporter. However, output levels declined to 1.9 bcf/d by early 2024, prompting the country to increase gas imports through pipelines connecting with Israel and via liquefied natural gas (LNG) shipments to prevent prolonged power outages.
In addition to gas imports, Egypt has seen a surge in high-sulphur fuel oil imports, reaching 255,000 barrels per day (bpd) in September, the highest level recorded since at least 2016. This trend reflects the ongoing challenges in balancing energy demands and diversifying energy sources to ensure a stable and sustainable energy supply for the country’s growing population.
