Egypt is preparing to boost oil and gas production, draw in fresh investment and cut back on petroleum imports as part of its economic and social development strategy for the 2026/2027 fiscal year, according to senior officials from the country’s planning and petroleum ministries.
Minister of Planning and Economic Development Ahmed Rostom and Minister of Petroleum and Mineral Resources Karim Badawy jointly outlined the government’s priorities for the sector this week, framing energy security as a national imperative amid ongoing regional and global geopolitical uncertainty.
As part of the strategy, the government intends to invest US$4.5 billion in refinery development.
The investment is aimed at increasing domestic production capacity and reducing Egypt’s reliance on imported petroleum products, a long-standing goal for policymakers seeking to insulate the economy from volatile international energy markets.
Badawy also pointed to plans for Egypt to receive natural gas from Cyprus, which would then be re-exported to international markets.
Officials believe the arrangement would reinforce Egypt’s ambitions to become a central hub for energy distribution in the region.
“The country also seeks to receive Cypriot gas and re-export it to global markets, strengthening its position as a regional energy hub.”
Badawy said the government is also in the process of updating its national energy strategy, with a particular focus on expanding renewable energy capacity and supporting industries that generate higher economic value.
The move reflects a broader push by Cairo to diversify its energy mix beyond traditional hydrocarbons while still capitalising on its oil and gas resources in the near term.
For his part, Rostom emphasised the importance of maintaining regular payments to foreign petroleum partners, noting that this practice has played a significant role in creating a more attractive environment for investment in the sector.
He said the approach has helped shift the petroleum industry from a period of contraction toward renewed growth.
According to Rostom, the petroleum sector recorded a return to growth in the third quarter of the 2025/2026 fiscal year, posting a 0.7 per cent increase in June 2026 alone.
That expansion marked the sector’s first positive quarterly performance since the first quarter of the 2023/2024 fiscal year, a turnaround officials attribute to higher output of crude oil, condensates and liquefied petroleum gas.
The renewed growth comes as Egypt has grappled in recent years with declining natural gas output from mature fields, prompting the government to accelerate exploration activity and seek new partnerships with international energy companies.
Officials have repeatedly stressed that timely payments to foreign operators, some of which had been delayed amid broader economic pressures, are essential to keeping investors engaged in the country’s upstream sector.
The 2026/2027 development plan positions the petroleum and mineral resources sector as a key pillar of Egypt’s broader economic strategy, with officials framing energy security, investment attraction and import substitution as interconnected goals.
The planned refinery investment and the prospective Cyprus gas arrangement both suggest that the government is looking to strengthen its position within regional energy markets while working to stabilise domestic supply.
As the fiscal year progresses, analysts will likely watch closely to see whether the positive momentum reported in mid 2026 can be sustained, particularly as Egypt continues to navigate a complex regional energy landscape shaped by shifting geopolitical dynamics and fluctuating global commodity prices.
