Moustafa Allam
Egypt’s gas production currently stands at around 4.1 billion cubic feet (bcf) per day, while domestic consumption averages 6.2 bcf and may go up to 7.2 billion cubic feet during peak summer months, according to data from the Ministry of Petroleum. Therefore, the government is tracking several paths to secure additional supplies.
As part of its strategies, Egypt has reached an agreement with Cyprus to develop a subsea gas pipeline carrying natural gas from Cyprus’s Aphrodite field to Egypt. It would reinforce the North African country’s position as a main energy regional hub.
Under the agreement, Cairo and Nicosia will establish a Cyprus-based company to build and operate the offshore pipeline, with a total cost of over two billion dollars.
Cyprus willfully finance the construction, while Egypt’s East Mediterranean Gas Company will hold a 10-per-cent stake. It’s expected to fully operate by 2030.
Spanning around 170 kilometers through the Mediterranean, the pipeline will transport up to 800 million cubic feet of gas per day from the Aphrodite field directly to Egypt. Then, the gas will be processed at the Zohr onshore facilities before being injected into the national gas grid.
Aphrodite is one of the largest undeveloped gas discoveries in the Eastern Mediterranean. Discovered in 2011, the field lies around 30 kilometers northwest of Israel’s Leviathan field, with estimated reserves of 4.4 trillion cubic feet.
Egypt is currently implementing a multi-side strategy to secure its natural gas needs amid declining domestic production and rising demand. It focuses on four main approaches: gas imports from Cyprus, new local discoveries, expanding renewable energy sources, and importing liquefied natural gas despite its high cost.
For Egypt, the agreement with Cyprus fits into this strategy as it hosts the region’s only operational LNG export facilities, giving it the ability to process and re-export for neighboring producers.
According to cabinet statements, Egypt is set to return as a natural gas exporter by 2027, with production expected to reach 6.6 bcf per day. The government had settled debts to foreign energy companies, clearing $8.5 billion in arrears since June 2024.
On a parallel line, three floating storage and regasification units operate with a total capacity of 2.25 billion cubic feet per day, while the country is still expecting a fourth from Aqaba and a fifth at Damietta, providing flexibility against supply disruptions.
Egypt plans to get 42 percent of its electricity from renewable sources — including solar, wind, and hydro-power—by 2030.
