British energy giant BP plans to invest around US$1.5 billion in Egypt’s gas sector during the 2026/27 fiscal year, underscoring Cairo’s efforts to revive energy output and attract fresh foreign investment as it seeks to strengthen its position as a regional gas hub.
The planned investment will support gas development, exploration and the drilling of new wells, according to William Lin, BP’s executive vice president for gas and low carbon energy, who announced the plan during a meeting with Egyptian Prime Minister Mostafa Madbouly on the sidelines of the EGYPS 2026 energy conference.
The investment programme, which BP said could still expand, is one of the clearest signs yet that major international energy firms remain committed to Egypt’s upstream gas sector despite regional uncertainty and the country’s broader economic pressures.
Madbouly said the Egyptian government valued its strategic partnership with BP and hoped to see even more investment in the coming years, according to a government statement issued after the meeting.
Lin said BP remained committed to expanding cooperation with the Egyptian authorities, citing the company’s long-standing presence in the country and its confidence in the direction of recent government reforms in the energy sector.
He also praised the Ministry of Petroleum and Mineral Resources for supporting BP’s operations and ensuring the regular settlement of dues owed to the company, a point that has often been critical for investor confidence in Egypt’s oil and gas industry.
“These decisions are characterised by complete clarity and have contributed to stimulating us to take important investment steps,” Lin said, referring to recent state measures affecting the sector.
BP has been one of the most prominent international investors in Egypt’s natural gas industry, particularly in the Mediterranean, where the country has sought to expand offshore production to meet domestic demand and preserve export capacity.
More Read
The company’s portfolio in Egypt currently includes stakes in 14 concession areas in the Mediterranean, according to Lin. Of those, 12 are in the development and production phase, while two remain under exploration.
Lin also said BP was targeting opportunities in the Red Sea, an area that Egypt has increasingly promoted for future energy exploration as it seeks to diversify its hydrocarbon portfolio and attract new drilling activity.
The announcement comes as Egypt works to reinforce its role in the eastern Mediterranean energy landscape. Over the past decade, the country has sought to position itself as a processing and export hub for regional gas, supported by offshore discoveries, liquefied natural gas infrastructure, and strategic partnerships with international producers.
But that ambition has also been tested by domestic energy pressures, including rising consumption, fluctuating output and the financial burden of maintaining investor confidence in a capital-intensive sector.
Foreign investment remains crucial to Egypt’s energy plans, particularly as the government tries to sustain exploration and development activity while managing broader economic strains including inflation, currency pressures and fiscal tightening.
The EGYPS 2026 conference, where the announcement was made, has served as a platform for Egyptian officials to showcase the country’s energy potential and signal policy stability to international investors. The event was held under the patronage of President Abdel Fattah al-Sisi and brought together government officials, executives and industry stakeholders from across the global energy sector.
Lin said BP intended to continue expanding its footprint in the Egyptian market, describing the country as a strategic base for the company’s regional gas activities.
For Egypt, the commitment is a welcome boost at a time when sustaining energy investment is central not only to output and export goals, but also to wider economic confidence.
If fully deployed, the US$1.5 billion investment could help accelerate new drilling, support production from existing offshore fields and strengthen Egypt’s ability to balance domestic gas needs with its regional energy ambitions.
