Egypt is actively expanding its natural gas infrastructure through renting three Floating, Regasification and Storage Units,(FRSU) with plans to add a fourth one soon, said Minister of Petroleum and Mineral Resources, Karim Badawi, during a press conference on Wednesday at the new Administrative Capital.
Renting the FRSUs comes within the framework of the ministry’s efforts to hedge against the drop in local production, and achieve the first pillar of the ministry’s strategy related to covering citizens’ needs of petroleum products most effectively and sustainably, Badwai noted.
The ministry has been intensifying efforts to enhance energy security and sustainability through different mechanisms that involve providing incentives to foreign oil companies, expanding the sector’s infrastructure, repaying dues to oil and gas partners, and renting regasification units, Badawi noted.
During the press conference, Minister Karim Badawi outlined the latest advancements in Egypt’s oil and gas sector, covering ongoing drilling and exploration projects, cross-sector collaboration, and strategic agreements with international companies and partner nations.
Badawi noted that demand for natural gas from different sectors increased by 14% in 2025. He added that natural gas production fell by 25% during the last two years, while crude oil production decreased by 10%.
To bridge the demand-supply gap, the ministry significantly expanded its operations between July 2024 and May 2025, drilling a total of 75 wells. Of these, 69 were assessed, leading to 40 new oil and gas discoveries. According to Badawi, these discoveries hold estimated reserves of 42 million barrels (mmbbl) of oil and condensates, along with 1.3 trillion cubic feet (tcf) of natural gas.
He also noted that 12 new agreements were signed during the 2024–2025 fiscal year and the preceding months involving 43 new wells. These deals are worth a total of $631 million of investments. Furthermore, 15 additional agreements are in the final stages of approval for 80 new wells worth approximately $618 million of investments.
Badawi also reflected on meetings with different international companies such as Shell, Eni, bp, ExxonMobil, to foster cooperation and increase investments.
Badawi noted that exchange rate fluctuations have disrupted the timely payment of foreign partners’ dues. Despite these delays, some international companies continue operating in Egypt without withdrawing from the sector.
“The ministry’s commitment to rebuilding trust with foreign partners required an integrated, collaborative effort both in Egypt and abroad,” said Badawi.
“I fully believe that overcoming this critical period will only happen through cooperation and integration with other stakeholders, including the Ministry of Electricity, the Ministry of Finance and with the Central Bank Governor, and the Prime Minister,” he added.
Badawi reflected on the Egypt International Energy Show (EGYPES 2025) and the agreements signed with Saudi Arabia in the energy efficiency and renewable energy fields, as well as the deal with Cyprus on developing Cypriot natural gas discoveries using Egypt’s liquefaction infrastructure and exporting it to Europe.
During the press conference, Badawi outlined the six pillars of the ministry’s strategy, highlighting the importance of the mining sector and increasing its contribution to Egypt’s economic growth.
He noted that a decade ago most countries used to prioritize the oil and gas industry, but over time, the world increased its focus on the mining sector amid the rising demand for extracting transitional minerals.
The ministry has recently transformed the Egyptian Mineral Resources Authority (EMRA) into an economic entity in order to streamline regulations and framework with international and private investors to boost exploration activities and expand Egypt’s mineral wealth.
