Egypt Announces New Gas Discovery in Western Desert Amid Push to Boost Output

Egypt has announced a new natural gas discovery in its Western Desert, with early tests indicating production of around 26 million cubic feet of gas per day along with 2,700 barrels of condensate.

The find was made by Apache Corporation in partnership with Egyptian General Petroleum Corporation after drilling the SKAL-1X exploratory well in the South Kalabsha area, according to a statement from Egypt’s petroleum ministry.

Officials said the discovery highlights the impact of recent policy changes aimed at attracting investment and expanding exploration. The Ministry of Petroleum and Mineral Resources introduced a set of incentives in August 2024 to encourage drilling activity, boost production, and narrow the gap between domestic supply and demand.

In its statement, the ministry said the new discovery is located close to existing concession areas operated by Apache, which is expected to reduce development costs and speed up production. Proximity to established infrastructure and facilities is seen as a key advantage, allowing companies to bring new resources online more quickly.

Authorities said this approach could help offset the natural decline in output from older fields while limiting capital spending. Egypt has been seeking to increase its energy output as demand continues to rise, particularly for natural gas used in electricity generation and industrial activity.

Apache has significantly expanded its presence in Egypt in recent years. The company’s investments in the country’s petroleum sector reached approximately $2.7 billion in 2024, up from $2 billion in the previous year. Its total production in Egypt stood at around 211,000 barrels of oil equivalent per day, according to company data.

Looking ahead, Apache plans to drill 34 exploration and development wells in 2026, with investments estimated at about $150 million. The company aims to increase its gas production to nearly 500 million cubic feet per day as part of its broader growth strategy in the region.

Egypt’s efforts to boost production come as it faces a widening gap between supply and demand. Official figures show current natural gas output at about 4.2 billion cubic feet per day, while domestic demand is estimated at roughly 6.2 billion cubic feet per day. The shortfall has forced the country to rely on imports of liquefied natural gas to meet its energy needs.

The latest discovery is expected to contribute to Egypt’s ongoing push to strengthen its energy security and reduce reliance on imports, while supporting longer-term plans to expand domestic production capacity.