Egypt targets 44% reduction in gas production decline rate

Egypt is implementing strategic measures to stabilize its energy sector and address the widening gap between domestic gas production and consumption. The Ministry of Petroleum and Mineral Resources has reached agreements with eight international production companies to reduce the natural decline rate of gas field production. The goal is to limit monthly declines to approximately 100 million cubic feet during the final quarter of 2026, down from the current average of 180 million cubic feet, representing a 44% reduction in the rate of decline.

To support this initiative, foreign production companies and partners are expected to inject approximately $1.6 billion in investments. These funds will be directed toward well development, re-completion, and advanced reservoir management to maximize recovery rates. This comes as domestic consumption, driven by power plants and industrial sectors, reaches approximately 7.2 billion cubic feet per day, while current production has fallen to roughly 3.8 billion cubic feet per day.

Separately, Osama Kamal, Chairman of the Senate Energy and Environment Committee, emphasized the necessity of transitioning to a diverse energy mix to ensure long-term security. He noted that global energy volatility and rising costs impact inflation and central bank policies. Kamal highlighted the importance of moving away from single-source dependency, citing China’s model of combining solar, wind, and nuclear energy as a benchmark for stability.