Jul 28, 2025
Shell Approves Egyptian Gas Project to Strengthen Local Supply
Shell has made a final investment decision (FID) to develop the Mina West offshore gas field in Egypt's Mediterranean Sea, aiming to address the country's growing domestic supply gap and bolster its integrated gas strategy. This announcement, made in partnership with Kuwait Foreign Petroleum Exploration Company (KUFPEC), comes as Egypt faces challenges with LNG imports and decreasing production from older fields.
The project, initially revealed on July 23, was further clarified by Shell and industry sources on Friday. Mina West is estimated to contain 0.5 trillion cubic feet (tcf) of gas and will be developed using a subsea connection to the existing West Delta Deep Marine (WDDM) infrastructure, enabling quicker production with lower emissions.
Shell holds a 60% operational stake through its subsidiary BG International, while KUFPEC owns the remaining 40%.
Dalia Elgabry, Shell Egypt's chair, remarked that this development demonstrates their commitment to providing competitive and lower-carbon energy where it's most needed. KUFPEC CEO Eisa Al-Maraghi stated that the decision reflects a shared vision for maximizing resource efficiency and contributing to Egypt's energy security.
Egypt, which was once a regional LNG exporter, has had to restart imports in 2025 due to increased gas consumption and declining output from fields like Zohr. The country has recently signed multi-billion-dollar LNG supply agreements with Shell and TotalEnergies, while a slowdown in its Red Sea exploration has shifted investment towards established offshore Mediterranean assets.
The Mina West project is expected to supply early gas volumes to Egypt’s domestic grid and support Shell's goal of increasing integrated gas output by 1% annually over the next decade. By utilizing existing underwater pipelines and facilities, the project can be expedited at a lower cost, which is crucial for alleviating the pressure on Egypt’s gas supply.
The approval of Mina West also coincides with renewed interest in Egypt's offshore blocks, as both Western and regional companies ramp up exploration efforts in the Mediterranean. Recent license rounds have highlighted the North Alexandria and Herodotus basins, where technical evaluations indicate untapped potential. With the government prioritizing expedited development and infrastructure connections, Shell’s decision is viewed as a strategic advantage in the ongoing competition to restore Egypt's status as a gas export hub.
The project, initially revealed on July 23, was further clarified by Shell and industry sources on Friday. Mina West is estimated to contain 0.5 trillion cubic feet (tcf) of gas and will be developed using a subsea connection to the existing West Delta Deep Marine (WDDM) infrastructure, enabling quicker production with lower emissions.
Shell holds a 60% operational stake through its subsidiary BG International, while KUFPEC owns the remaining 40%.
Dalia Elgabry, Shell Egypt's chair, remarked that this development demonstrates their commitment to providing competitive and lower-carbon energy where it's most needed. KUFPEC CEO Eisa Al-Maraghi stated that the decision reflects a shared vision for maximizing resource efficiency and contributing to Egypt's energy security.
Egypt, which was once a regional LNG exporter, has had to restart imports in 2025 due to increased gas consumption and declining output from fields like Zohr. The country has recently signed multi-billion-dollar LNG supply agreements with Shell and TotalEnergies, while a slowdown in its Red Sea exploration has shifted investment towards established offshore Mediterranean assets.
The Mina West project is expected to supply early gas volumes to Egypt’s domestic grid and support Shell's goal of increasing integrated gas output by 1% annually over the next decade. By utilizing existing underwater pipelines and facilities, the project can be expedited at a lower cost, which is crucial for alleviating the pressure on Egypt’s gas supply.
The approval of Mina West also coincides with renewed interest in Egypt's offshore blocks, as both Western and regional companies ramp up exploration efforts in the Mediterranean. Recent license rounds have highlighted the North Alexandria and Herodotus basins, where technical evaluations indicate untapped potential. With the government prioritizing expedited development and infrastructure connections, Shell’s decision is viewed as a strategic advantage in the ongoing competition to restore Egypt's status as a gas export hub.