Egypt's Meleiha Gas Project to Start Next Month, Adding 100M Cubic Feet Daily

Meleiha project

Egypt's Meleiha gas project in the Western Desert will begin operations next month, adding up to 100 million cubic feet per day to domestic supply. The added volume will increase local gas availability and reduce Egypt's need for imported gas.

Exploration and reform

Petroleum Minister Karim Badawi said Tuesday that Egypt plans to boost oil and gas exploration and production activity by about 20% this year. The ministry plans to introduce new contract structures meant to shorten drilling timelines and speed up exploration results. Seismic surveys will expand in the Western Mediterranean and the Western Desert.

Badawi pointed to the Dennis gas discovery as evidence of Egypt's exploration potential. The government's aims are straightforward: increase reserves and domestic production, reduce reliance on imported energy, and meet local market demand. The sooner new acreage is drilled, the sooner those aims can be tested against actual reserve numbers.

Those goals rest on reforms carried out over the past two years. Egypt has made regular payments to investment partners, improved the terms of petroleum agreements, and created new investment opportunities. The result, the ministry says, has been stronger investor confidence. That confidence underpins the expansion plans.

Refining targets

Egypt also plans to raise refinery utilization rates above 80% by 2026. The approach involves increasing the availability of crude feedstock for refineries and carrying out efficiency and modernization projects. Higher utilization is expected to lift domestic production of petroleum products, reduce diesel imports, curb other fuel imports, and lower the overall import bill.

The government additionally wants to increase exports of specialized petroleum products with higher added value. That points to a refining sector repositioned as both an import substitute and a potential source of export revenue.

Investment plans

South Valley Petroleum Holding Company plans to invest about $250 million over the next five years. The money will expand exploration, research, and production. Targets include new exploration areas, development projects, and seismic surveys in the Western Desert. The company said output has reached a record high.

Egypt's natural gas holding company, EGAS, is targeting additional gas reserves over the next five years. The aim is to strengthen the reserve base and support domestic production, giving the country more room to meet local demand without depending on foreign supplies.

Sector outlook

Egypt ranks fourth in the Arab world and 13th globally on an exploration and production risk-and-return index. The ministry describes the ranking as a sign of improved competitiveness and investment attractiveness.

The ministry is also developing digital platforms to improve asset management and monitor environmental performance across petroleum companies. The stated purpose is greater efficiency and more investment.

The pattern connecting these initiatives is a push to reduce Egypt's reliance on imported energy. More gas from Meleiha, higher refinery utilization, fresh seismic work in the Western Desert and the Western Mediterranean — each piece feeds the same goal: shrink the import bill and turn more of Egypt's resource base into higher-value products for export. The risk-and-return ranking suggests investors have noticed the improved climate. Whether the new contract structures convert that confidence into reserves and production will show up in the numbers over the coming years.