Dubai – Business News Report|| Egypt’s natural gas production received a significant boost with the entry of four new wells into the operational grid. This development is part of broader efforts by the oil sector to increase domestic supplies and lower the import bill. The General Petroleum Corporation and Egyptian Natural Gas Holding Company (EGAS) announced the addition of 45 million cubic feet of gas daily, alongside 540 barrels of condensates per day.
Operational Expansion Across Key Regions
The new capacity comes from placing three new wells into production and restarting a fourth after repair work. These additions are distributed across several production areas, including the Western Desert, the Gulf of Suez, and the Nile Delta onshore. The initiative aims to accelerate the commissioning of new wells and leverage existing infrastructure and facilities.
Company-Specific Contributions
Khaleda Petroleum placed the SKAL-2 well in the West Kalabsha area of the Western Desert into production, yielding approximately 12 million cubic feet of gas daily. Amal Petroleum restored the Amal-23 A ST well in the Gulf of Suez to production after repairs, contributing about 15 million cubic feet daily. In the Nile Delta, the Azza-2 well began production at roughly 10 million cubic feet daily, plus 460 barrels of condensates. Petrodesoq started production from the MA-1X well, adding around 8 million cubic feet of gas and 80 barrels of condensates.
Addressing Production Declines
This increase arrives as Egyptian gas production faces continuous pressure, declining for the ninth consecutive month in July 2026. Average production reached 3.64 billion cubic feet daily, a 10.56% year-on-year drop from 4.07 billion cubic feet in July 2025. Monthly production fell 1.3% compared to June 2026. The government seeks to halt this decline by accelerating drilling and inviting new investments.
Investment Climate and Future Targets
The improved investment climate follows the settlement of outstanding payments to foreign partners in June 2026. This has restored confidence, increasing exploration and production activity by 20%. EGAS plans to drill 16 new exploratory wells, targeting 6 trillion cubic feet of resources. Broader plans aim to add 330 million cubic feet daily by end-2026, including 250 million from the Zohr and West Mena fields and 80 million from the Meliha field.
This story was produced in the newsroom from the disclosed sources named above.
