Egypt slashes renewables target to focus on natural gas

Egypt has cut its renewable energy goal for 2040 from 58 percent down to 40 percent and will focus on natural gas in order to meet increasing energy demand, according to Karim Badawi, the minister for petroleum.

Before hosting the Cop27 climate conference in 2022, the North African state announced a target of achieving a 42 percent renewable energy mix by 2035. It subsequently amended the target to 2030.

The government announced a 58 percent target in June, which has now been abandoned, as the cash-strapped Cairo government strives to overcome a deep electricity crisis.

Egypt, the world’s 11th-largest natural gas producer, has positioned itself as a supplier of liquefied natural gas (LNG) to Europe.

In 2022, LNG exports climbed to nearly 9 billion cubic metres, bringing $8.4 billion in revenues, according to the petroleum ministry. 

But the country is facing shrinking gas output from domestic gas fields, including Zohr, the largest, turning it into a natural gas net importer. 

Zohr gas production has tumbled to less than 20 billion cubic metres, about 40 percent below its designed capacity.

Egypt’s gas production fell from 67 billion cubic metres in 2022 to an estimated 56 billion cubic metres in 2024.

The most populated Arab country, Egypt holds 2.1 trillion cubic metres of gas and the third-largest reserves in Africa, behind Nigeria and Algeria, but bought more than 50 LNG cargos this year. 

It is expected to issue another tender, according to Reuters, for up to 20 LNG tankers to cover demand for the first quarter of 2025.