Egypt, once viewed as the pillar of energy security in the Middle East, currently faces a multifaceted energy crisis that impacts both its economy and geopolitical role. Egypt used to export gas; however, for several factors, it is now a net importer of gas, including declining domestic reserves and higher domestic demand, as well as geopolitical tensions.
Domestic output has declined
Domestic natural gas production has declined significantly. While output was over 6 binary cubic feet per day (bcf/d) in early 2021, output was only about 3.5 bcf/d in April 2025, a decline of over 40%. This decline was primarily a result of depletion of major fields like Zohr. Although Zohr was one of the largest gas discoveries in the Mediterranean Sea, its decline has been faster than previously anticipated.
Growing Domestic Demand
At the same time, Egypt is facing surging domestic energy consumption. The rising number of people and the expanding industrial sector in Egypt are putting a lot of stress on the power grid, which relies mainly on natural gas for electricity. This growing energy use and demand are making the supply issues worse, leading to more frequent power outages and unexpected shutdowns in important industries like fertilizer production.
Turning to Imports
There are some challenges to the dependability of this import route. On June 25, gas exports from Israel to Egypt were halted after the escalation of violence in the conflict between Iran and Israel illustrated how vulnerable Egypt’s energy supply could be to regional threats. The exports resumed, but the episode exposed the frailty of Egypt’s energy security.
Strategic Responses and Future Outlook
To help address these issues, Egypt is trying to resume domestic production. In September 2025, EGAS (Egyptian Natural Gas Holding Company) signed a memorandum of understanding with BP to drill five more deepwater gas wells in the Mediterranean Sea.Its goal is to increase supply to local markets and reduce the number of imports from other countries.
The future of the energy environment for Egypt remains uncertain. The country must reconcile the need to ramp up domestic production with the attributes of geopolitics prevalent within the Eastern Mediterranean. As Egypt aspires to be a regional energy hub again, the journey ahead will require interpreting actions within the domestic regulatory framework, regional relationship actors, and global energy markets.
