Egypt’s energy vision: driving security, industrial growth, and a revitalised mining sector

In an exclusive interview with Energy Connects, HE Eng. Karim Badawi, Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt, discusses Egypt’s comprehensive energy strategy designed to balance rising domestic demand with long-term security, industrial growth, and the acceleration of low-carbon technologies.

His Excellency outlines how Egypt is managing LNG import requirements, expanding gas exploration, and reshaping its mining sector to support national development. Together, these efforts form a roadmap that positions energy and mining as interconnected pillars of Egypt’s economic future.

As part of your strategic objectives, Egypt continues to import LNG. What are your expectations on timelines around this?

The anticipated rise in electricity demand is driven by several interconnected factors. Large-scale mega projects are expected to significantly increase consumption, while the steady GDP growth rate reflects broader economic expansion that will further elevate energy needs. In addition, the transition to electric vehicles (EVs) introduces a new layer of demand, as widespread adoption will require a substantial electricity supply. Collectively, these dynamics will intensify the reliance on natural gas for power generation, positioning it as a critical resource to meet Egypt’s future energy requirements.

This continuous rise in demand has intensified Egypt’s dependence on external energy sources. To meet growing consumption needs, the country has increasingly relied on liquefied natural gas (LNG) cargoes, imported through global supply chains, as well as piped natural gas imports from neighbouring countries. This dual approach ensures a more stable supply, diversifies energy inflows, and strengthens regional energy cooperation, while also highlighting the strategic importance of cross-border infrastructure and international trade agreements in sustaining energy security. In response to this, the Ministry has implemented structural reforms to maintain strong drilling momentum across onshore and offshore basins, with more than 480 planned exploratory wells scheduled for 2026–2030. Accompanied by newly signed agreements with major international partners BP, ENI, and Shell, they will ramp up exploration in Egypt through extensive onshore and offshore 2D and 3D seismic surveys, targeting untapped prospects and deeper reservoirs. The volumes expected from these efforts support Egypt’s return to a net gas exporting position as new discoveries come online.

The Ministry worked closely with the Ministry of Electricity and Renewable Energy to establish the most efficient energy mix in 2025 — a year that recorded record-high electricity demand of 40.2 GW. This was achieved through efficient gas allocation, increased renewable energy penetration, diversified gas supply sources, and energy efficiency measures to reduce domestic gas consumption.

Egypt has also expedited its renewable energy target to achieve 42% by 2030, from 2035 — five years ahead of the previous goal. This demonstrates its commitment to accelerating the transition within the framework of the Integrated Energy Strategy 2040, which is expected to gradually reduce pressure on natural gas consumption, particularly in the power sector. In the medium term, Egypt is set to reestablish its role as a gas exporter while also directing part of its natural gas toward producing higher-value derivatives, such as petrochemicals and fertilisers. This dual strategy enhances energy security, attracts investment, and maximises economic returns.

Your Excellency, could you share insights on plans to revitalise Egypt’s mining sector and your views on how oil, gas, energy, and mining are key to driving Egypt’s energy future?

Egypt’s mining sector is undergoing a profound revitalisation, and the plans outlined reflect a strategic vision to position mining as a cornerstone of Egypt’s broader energy and industrial future. Let me highlight the key progress:

Institutional reform: In June 2025, Presidential Decree No. 87/2025 amended Law No. 198/2014, transforming the Mineral Resources Authority into an independent economic authority — the Mineral Resources and Mining Industries Authority — granting it greater flexibility in managing incentives, revenues, and licensing. This ensures stronger governance and integration with industry, defence, finance, and environmental bodies.

Digital transformation: Egypt will launch a Digital Mining Platform to modernise licensing, data access, and investor services. Digitising geological and geophysical data, creating a central data hub, and enabling electronic payments will align Egypt with global best practices for transparency and investor confidence.

Geological mapping: The national airborne geophysical survey will create the first comprehensive geological database in decades, covering six major regions. This will sharpen exploration accuracy, attract global investors, and support auctions for gold and critical minerals.

Gold exploitation agreements: New models of gold mining contracts offer long-term tax stability, reduced royalties at a minimum of 5%, and competitive profit-sharing terms. These align Egypt with global majors such as Barrick and AngloGold, making it a more attractive destination for international mining capital.

Incentives for SMEs: A package of 12 incentives reduces exploration costs, extends license durations, and introduces flexible short-term permits. These measures lower entry barriers for smaller firms, diversify investment, and accelerate discoveries.

As Egypt develops these reforms, mining is becoming integral to the country’s energy future. There are a series of advances that are already reshaping the sector:

Energy integration: Mining projects benefit from stable electricity and gas supplies, as well as expanding renewable energy capacity. Off-grid solar and wind solutions are well-suited for remote mining sites, supporting Egypt’s low-carbon energy mix.

Industrial competitiveness: Mining provides essential inputs for industries such as steel, cement, and fertilisers. Rare earths and strategic minerals are also crucial for clean energy technologies such as batteries, wind turbines, and solar panels.

Oil and gas synergy: Egypt is applying the same digitisation and modernisation efforts from its oil and gas sector to its mining sector. Synergies include shared infrastructure, logistics, and regulatory frameworks.

National energy security: Diversifying into mining reduces Egypt’s reliance on imported raw materials, strengthens supply chains, and supports industrial decarbonization goals.

The Ministry is implementing a comprehensive plan to develop Egypt’s mining sector and boost its contribution to GDP. This includes accelerating exploration and value-added manufacturing projects, maximising the use of local mineral resources, attracting foreign investment through a competitive regulatory framework and modern technology, and prioritising domestic industrial inputs over raw material exports. Ultimately, it positions Egypt as a regional hub for sustainable, diversified mining industries.