{"id":704052,"date":"2026-05-20T00:00:00","date_gmt":"2026-05-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=704052"},"modified":"2026-05-20T02:53:48","modified_gmt":"2026-05-20T02:53:48","slug":"cyprus-gas-a-new-export-line-and-fresh-western-desert-drilling","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/05\/20\/cyprus-gas-a-new-export-line-and-fresh-western-desert-drilling\/","title":{"rendered":"Cyprus gas, a new export line, and fresh Western Desert drilling"},"content":{"rendered":"

A Cypriot gas corridor, a Mediterranean oil export pipeline, and a fresh USD 208 mn drilling <\/strong>deal in the Western Desert<\/strong> \u2014 three energy developments that sketch out the same picture: Egypt methodically building the infrastructure, supply, and partnerships it needs to become an energy hub on the southern Mediterranean shore.<\/p>\n

\n

Cyprus eyes 2028 for Egypt export route<\/p>\n

Cyprus wants to route natural gas exports through Egypt by 2028 \u2014 from the offshore Cronos field to European markets<\/strong>, Cypriot President Nikos Christodoulides said<\/a> ahead of a cabinet meeting that approved the field\u2019s development and production plan alongside its commercial framework.<\/p>\n

BACKGROUND- <\/strong>Last year, the Oil Ministry signed three agreements<\/a> with field partners Eni and TotalEnergies to transport and process Cronos gas through Zohr-linked infrastructure, liquefy it at Damietta, and re-export it to Europe. The 2028 target aligns with statements from both former Cypriot energy minister George Papanastasiou last year<\/a> and current Minister Michael Damianos in March<\/a>, who both walked back an earlier 2027 timeline.<\/p>\n

The wider picture: <\/strong>North Africa\u2019s race to supply Europe is intensifying, with Algeria, Morocco, and Libya all jostling for a bigger share of the bloc\u2019s energy demand, as we explained in depth last month<\/a> .<\/p>\n

\n

The missing link on the Mediterranean coast<\/p>\n

The Oil Ministry plans to finish a new pipeline along the Mediterranean<\/strong> during <\/strong>2H<\/strong> 2026 <\/strong>\u2014 which will transport refined petroleum products from the Midor refinery to Al Hamra port, Al Arabiya<\/a> reports, citing an unnamed government source. Discussions are underway to secure EGP 700-800 mn to wrap up the remaining construction work.<\/p>\n

REMEMBER-<\/strong> This has been in the works for a while. In 2024<\/a>, Petrojet completed more than half of a new EGP 1.7 bn fuel transport line connecting Midor to Al Hamra, designed to supply the city of El Alamein and its surrounding areas with refined fuel, with export optionality. Earlier this year<\/a>, the port\u2019s operator Wepco began offering crude storage and trading to third parties, targeting around 88 mn barrels in trade volumes next fiscal year while doubling storage capacity to 5.3 mn barrels.<\/p>\n

DATA POINT- Egypt exported USD 1.4 bn worth of fuel shipments during 1Q,<\/strong> up from some USD 900 mn during the same period last year.<\/p>\n

Why it matters:<\/strong> The new pipeline was the missing link in a two-way system. An existing flow arrangement<\/a> already moves crude from Al Hamra to Midor for refining, and this new route sends the higher-value finished products back for re-export. That loop \u2014 import, refine, re-export \u2014 is how Egypt is transitioning its energy sector into a processing and logistics hub on the Mediterranean.<\/p>\n

\n

And more gas in the ground<\/p>\n

The Egyptian General Petroleum Corporation (EGPC) signed a U<\/strong>SD 208 mn agreement <\/strong>with Cheiron Energy and Capricorn Energy<\/strong> to fast-track exploration, development, and production across the Badr El Din concession block in the Western Desert, according to a statement<\/a> from the Oil Ministry. The two companies will use the funds to drill 44 new exploration and production wells and also merge eight existing production fields, while adding new exploration acreage to the concession.<\/p>\n

Coming up: <\/strong>The Ministry is also preparing to launch a new oil exploration bid round covering at least 15 blocks during 3Q, with most of the acreage located in the Western and Eastern Deserts, the Arabic press<\/a> reports, citing an unnamed government source. The new licensing round is expected to launch after the current Red Sea international bid round closes at the end of June.<\/p>\n

Why it matters:<\/strong> The government needs every barrel it can get. With output currently at 560k bbl \/ d and a target of roughly 626k bbl \/ d by the end of next fiscal year, the math only works if international oil companies are willing to drill. <\/p>\n

The strategy: <\/strong>To secure its target of USD 6.2 bn in FDI<\/a> for the oil sector next fiscal year, the government is moving on multiple fronts: clearing arrears<\/a> owed to foreign energy firms, with a commitment to fully settle the remaining balance by June 2026; rolling out more flexible, risk-adjusted upstream terms<\/a> ; and attracting significant FDI commitments<\/a> \u2014 including a USD 19 bn pledge from global energy majors over the next three years.<\/p>\n","protected":false},"excerpt":{"rendered":"

From Cypriot gas exports and a new refined products pipeline to a fresh USD 208 mn drilling agreement in the Western Desert, the gov\u2019t is building out its energy infrastructure<\/p>\n","protected":false},"author":1,"featured_media":704053,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7207],"tags":[93,72,91,371],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-704052","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-energy","tag-enterpriseam","tag-oil-and-gas","tag-oil-ministry","wpautop","entry"],"acf":{"mongo_id":"ca2a06de-ff64-4ba9-b80e-d8da896d990d","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/5\/1230.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Building the energy hub","related_issue":[704047],"teaser":"From Cypriot gas exports and a new refined products pipeline to a fresh USD 208 mn drilling agreement in the Western Desert, the gov\u2019t is building out its energy infrastructure"},"yoast_head":"\nCyprus gas, a new export line, and fresh Western Desert drilling - 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Turkish Cypriots had proposed that the two sides work together to explore\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":594921,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/11\/israeli-gas-will-arrive-in-egypt-before-the-end-of-the-year-el-molla\/","url_meta":{"origin":704052,"position":2},"title":"Israeli gas will arrive in Egypt before the end of the year -El Molla","author":"enterpriseam admin","date":"11 September 2019","format":false,"excerpt":"Egypt will begin receiving natural gas from Israel by the end of 2019, Oil Minister Tarek El Molla said in an interview at the World Energy Congress yesterday, according to Bloomberg. 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The US has upped its naval presence in the Mediterranean as ExxonMobil dispatched drilling ships to Cyprus\u2019 Exclusive Economic Zone (EEZ), Sputnik reports. ExxonMobil is operating on a contract with Cyprus and Qatar Petroleum\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":581656,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/19\/chevron-is-trying-to-figure-out-a-way-of-exporting-cypriot-gas-via-egypt\/","url_meta":{"origin":704052,"position":5},"title":"Chevron is trying to figure out a way of exporting Cypriot gas via Egypt","author":"enterpriseam admin","date":"19 February 2023","format":false,"excerpt":"Chevron takes a step forward on plans to process Cypriot gas here: Chevron has officially requested permission from Shell to use its underutilized West Delta Deep Marine (WDDM) facilities on Egypt\u2019s Mediterranean coast to process gas from Cyprus\u2019 Aphrodite field, oil and gas publication MEES reports. Chevron is a 35%\u2026","rel":"","context":"In "Energy"","block_context":{"text":"Energy","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/2\/israel-gas-1600px.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/704052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=704052"}],"version-history":[{"count":1,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/704052\/revisions"}],"predecessor-version":[{"id":704135,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/704052\/revisions\/704135"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/704047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/704053"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=704052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=704052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=704052"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=704052"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=704052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}