Egypt has revised its renewable energy target for 2040, reducing it from the originally planned 58% to 40%, announced by the country's Petroleum Minister, Karim Badawi. Despite previous commitments to increase the share of renewable energy to 42% by 2035 and then advancing this goal to 2030, the current strategy refocuses on natural gas as a key part of Egypt's energy mix over the coming years. This adjustment was presented at the inauguration of the 2024 Mediterranean Energy Conference, where Badawi emphasized collaboration and investment in natural gas exploration.
The shift underscores Egypt's ongoing dependence on fossil fuels and its efforts to rebuild trust with foreign oil companies, which have experienced slowed operations due to Egypt's foreign exchange shortages leading to billions of dollars in unpaid dues. Since taking office in July, Badawi has engaged with various international energy firms, including Italy's Eni, which plans to start drilling new wells in Egypt's largest gas field, Zohr, by early 2025 to boost production.
Production at the Zohr gas field peaked in 2019 at 3.2 billion cubic feet per day, establishing Egypt as a net exporter of natural gas. However, by early 2024, output had dropped to 1.9 billion cubic feet per day. Consequently, Egypt increased its gas imports via a pipeline connected to Israel and by receiving shipments of liquefied natural gas to avoid extended power cuts.
Additionally, Egypt's importation of high-sulfur fuel oil surged to 255,000 barrels per day in September, marking the highest level since at least 2016.
