Egypt accelerates USD 128 mn downstream grid expansion targeting early 2027

The lacking hyperlink on the Mediterranean: The largest piece of the package deal is the USD 52 mn, 135-km pipeline connecting the Midor refinery in Alexandria to the Al Hamra petroleum port in El Alamein, due in November. As we famous back in May, this line is the lacking hyperlink on the Mediterranean coast. It closes a two-way loop that permits Egypt to import crude, refine it domestically at Midor, and pump the higher-value completed merchandise again to Al Hamra for re-export.

The remainder of the pipelines embody:

• A USD 21 mn, 52 km pipeline from Khorshid (east of Alexandria) to Damanhur launching this month;
• Part one of many Tebbin-Assiut line, spanning 75 km and launching by year-end at a price of USD 13 mn;
• A USD 31 mn, 16-km line serving the Assiut Oil Refining Firm, coming on-line in December;
• Two smaller mazut strains round Cairo: a USD 6 mn, 20-km line from Mostorod to west Shubra, due in early 2027, and a USD 4.2 mn, 19-km route realignment between Mostorod and Tebbin.

The large image: Egypt’s petroleum exports are surging. In 1H 2026 alone, the nation exported 2.3 mn tons of petroleum merchandise, producing USD 2.3 bn in income, matching its total export quantity for 2025 in simply six months. The federal government expects to ship out a good larger 2.5 mn tons within the second half of the yr.

Refineries are busier than ever: This growth is occurring as a result of native refineries at the moment are working at 80% capacity, up from 60% beforehand, pushed by a rise in crude provide and home crude manufacturing hitting a two-year excessive. This pipeline enlargement goes hand-in-hand with a broader USD 4.5 bn state program to improve our present refineries, increase native gasoline manufacturing, and shrink the nation’s import invoice.

In different vitality information

Shell and the Egyptian Pure Fuel Holding Firm (Egas) are aiming to deliver the deepwater Khufu fuel area on-line in 2H 2027 with an preliminary output of 45 mmcf / d, in keeping with an unnamed government official.

Concerning the area: The sector, positioned within the Mediterranean’s North East El Amriya concession, will bypass a prolonged growth cycle by straight connecting to present manufacturing services in West Burullus by the top of 2027. Rashid Petroleum (Rashpetco) is executing the event on behalf of the companions. Shell operates the concession with a 60% curiosity, whereas Kuwait International Petroleum Exploration Firm (KUFPEC) holds the remaining 40%.

The downgrade: Khufu’s reserves at the moment are estimated at lower than 500 bcf. That is a lot decrease than the preliminary estimates introduced in May 2024, when Khufu and its sister area West Mina have been believed to carry a mixed 2 tcf of reserves. In the meantime, preliminary estimates for West Mina have are available at a meager 245 bcf, which means the 2 fields maintain lower than 750 bcf.

West Mina continues to be the heavy hitter: Shell expects to deliver West Mina on-line by the top of 2026, including round 160 mmcf / d to the nation’s output.

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