Synerjies

Egypt’s energy sector shifted significantly between 2020 and 2025, moving from relative balance to growing structural pressure. ⛽

In this issue of the , we highlight how Egypt succeeded in significantly reducing arrears owed to international oil and gas companies after the crisis intensified following the foreign currency shortage that emerged in 2022. 💵

The accumulation of unpaid dues constrained upstream , delayed exploration and development activities, and contributed to declining natural gas production over the following years. In response, the government prioritized arrears repayment, sharply reducing outstanding balances with a target of full clearance by 2026 in order to restore investor confidence and revive production activity aiming at reducing the gap between the supply and the demand. 🛢️

At the same time, rising electricity demand driven by , , and higher cooling needs coincided with declining gas production due to maturing fields and reduced investment. This widening supply-demand gap turned Egypt from a near-balanced gas market into a structural deficit by 2024–2025, increasing reliance on LNG imports and placing growing pressure on the national electricity grid, which recorded a historic peak load in 2025. ⚡