Egypt is targeting a rise in natural gas production as a regional Hub for gas trading

Egypt’s Ministry of Petroleum and Mineral Resources  (MoPMR ) said it exported a new liquefied natural gas (LNG) cargo from the Idku LNG complex on the Mediterranean coast, destined for Canada on behalf of France’s TotalEnergies (TTE: EPA) The shipment, amounting to around 150,000 cubic metres of LNG, comes as part of the ministry’s strategy to encourage foreign partners to step up investment in Egypt’s gas sector and maximise economic returns from existing infrastructure marking the first shipment of 2026.

Three LNG cargoes In Q4 2025

In Q4 2025, Shell (SHEL: LSE) exported three LNG cargoes from Egypt’s liquefaction facilities to Greece, Italy and Turkey.  Meanwhile ownership of the Idku LNG plant is split between international and state partners. Shell and Petronas jointly hold about 71% of the facility, while the Egyptian government—through the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company (EGAS)—controls roughly 24%, with the remaining 5% held by TotalEnergies

.Egypt is targeting a rise in natural gas production

.Egypt is targeting a rise in natural gas production to 6.4–6.6bn cubic feet per day over the next five years, supported by major investments from global energy companies. Petroleum Minister Karim Badawi said planned investments include $8bn by Italy’s Eni (ENI: BIT) and $5bn by BP (BP: LSE).Badawi added that 2026 will see the drilling of 14 exploratory wells in the Mediterranean, targeting estimated reserves of around 12 trillion cubic feet of gas, as Egypt accelerates the development of new discoveries to cut import bills and strengthen energy security.

Related : Shell takes christens Europe’s largest LNG bunkering barge

Role of Egypt as a regional Hub for gas trading 

Egypt is leveraging its strategic location, existing LNG plants (Damietta, Idku), and robust gas grid to become a major regional gas trading hub, especially for re-exporting Israeli and potentially East Med gas to Europe, acting as a crucial bridge between East Med producers and global markets, despite facing challenges like increasing domestic demand and regional instability. Its goal is to connect regional gas sources (like Israel, Cyprus) to its liquefaction facilities for global export, utilizing pipelines and ports to enhance energy connectivity and securit

Agreement with the Lebanon and Syria 

On the other hand a December 2025 agreement with the Lebanese Ministry of Energy and Water to provide natural gas to the Deir Ammar Power Plant. These agreements leverage Egypt’s robust infrastructure, including the Arab Gas Pipeline and regasification units, to stabilize the regional energy landscape.In 2025, Egypt exported over five LNG cargoes to European and Asian markets, including shipments to Greece, Türkiye, and Italy carrying 150,000–155,000 cubic meters each 

Also .Egypt will export natural gas and petroleum products to Syria under two memoranda of understanding (MoU) signed between the countries’ petroleum ministries, the Ministry of Petroleum and Mineral Resources said  .Egypt, Syria, Jordan, and Lebanon previously agreed in the early 2010s to include Syria in the Arab Gas Pipeline, designed to transport Egyptian gas north. Under a 2022 tripartite deal, Egypt committed to sending 650 million cubic metres of gas per year to Lebanon via Syria to support power generation.

Encourage foreign partners 

This aligns with the Ministry of Petroleum and Mineral Resources’ strategy to encourage foreign partners to inject more investments, which will consequently help Egypt boost domestic gas production and achieve economic returns.In addition, the move reinforces the country's position as a regegypt ional hub for natural gas trade.

US Tariff

It is noteworthy that Canada-based energy infrastructure firm AltaGas has signed long-term agreements with pipeline operator Keyera for processing liquefied petroleum gases (LPGs), as Canada seeks to reduce their dependence on US market in light of recent tariffs imposed by US President Donald Trump.

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