Egypt Plans to Restore Gas Production by 2025

Egypt's Prime Minister Mustafa Madbouly announced plans to restore natural gas production to normal levels by June 2025, following a significant drop in output due to unpaid debts to foreign oil companies. The government has earmarked up to $1.5 billion to settle these arrears, which accumulated during a foreign currency shortage. As a result of the production decline, Egypt has become a gas importer for the first time in years and halted exports to ensure adequate supply. To further address power shortages exacerbated by summer demand, the government allocated $2.5 billion to prevent electricity load-shedding and plans to activate a power grid link with Saudi Arabia by next summer. Additionally, the government is seeking to buy 20 liquefied natural gas cargoes to secure supply ahead of winter, which raises concerns about the European gas market balance. Meetings with Shell executives also highlighted ongoing exploration and production plans in the Eastern Mediterranean to boost exports.