Egypt's Economy
Egypt's Gas Discoveries
How the discovery of the giant Zohr gas field in 2015 made Egypt a gas exporter, and why rising demand and falling output turned it back into an importer.
Egypt has important natural gas fields.
Zohr
In 2015, Italy’s Eni discovered Zohr, one of the largest gas fields in the Mediterranean.
Export hopes
- Egypt aimed to become a regional gas hub.
- It exports LNG from plants at Idku and Damietta.
Reversal
- Domestic demand grew quickly with population and power use.
- Output from Zohr declined.
- By 2024, Egypt faced power cuts and began importing LNG again.
Israel’s gas
Egypt imports pipeline gas from Israel, some re-exported as LNG.
Lesson
Resource booms can fade when demand outpaces supply.
The summer blackouts
In summer 2023 and 2024, rotating power cuts hit Egyptian homes as gas supply fell short.
Thinking a big discovery guarantees energy exports
Demand can outgrow supply.
Key takeaways
- Zohr was discovered in 2015.
- Egypt aimed to be a gas hub.
- Demand grew and output fell.
- Egypt returned to importing LNG.
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