Egypt is formalizing a strategic shift in the role it wants to play as a regional energy hub, prioritizing its position as an infrastructure middleman to navigate a structural shortfall in domestic production. At the most recent AmCham monthly luncheon attended by EnterpriseAM, Oil Minister Karim Badawi acknowledged the “confusing” reality of Egypt simultaneously importing and exporting gas, framing the paradox as a deliberate “ecosystem” play.

Previously, the regional gas hub plan had been presented as a way to monetize the country’s unrealized massive offshore reserves, spurred by the hype surrounding the Zohr field. But in contrast to the initial optimism, domestic production has since stagnated — a decline Badawi links to USD 5 bn in arrears the ministry is now making a priority to settle — prompting a reimagining of Egypt’s role as an energy hub. The hub is no longer about selling surplus Egyptian gas — but hopefully, this will come later — it’s about being the middleman to manage flows within the region and to re-export further afield.

Why this matters: With domestic gas supply still tight, this anchors the gas hub narrative in infrastructure rather than domestic production. Egypt doesn’t need surplus gas to sell the hub story. In the minister’s framing, the hub status is defined by infrastructure capacity and routing capability. Egypt is one of the few players in the region that has both liquefaction and regasification terminals.

We’ve built the capability to move gas in multiple directions, Badawi pointed out, citing the country’s floating storage and regasification units with a combined capacity of around 2.8 bcf/d, alongside pipeline gas inflows from Israel of about 1 bcf/d. That optionality, he said, allows Egypt to meet domestic demand while honoring export and contractual commitments.

Egypt isn’t the only regional player doubling down on this strategy

Turkey is doubling down on Mediterranean LNG import and re-export infrastructure, with plans to double capacity at the existing Dortyol terminal to 56 mn cbm and develop a new FSRU terminal on the Mediterranean coast between Gazipasa and Anamur.

The pattern: Ankara is also leveraging its unique geographic location and advanced gas infrastructure to double down on its role as a re-export hub to the energy-hungry European continent. Turkey has been clinching short- and long-term LNG supply agreements left and right over the past year to help diversify its natural gas sources away from Russia, its largest supplier over the last two decades, to create its own “Turkish blend” — an export product created by mixing gas from different countries.

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