Cairo — Egypt has signed a $500 million agreement to develop the Harmattan gas field in the Mediterranean, as part of efforts to strengthen domestic energy production and reduce supply gaps, according to an official statement from the Egyptian Ministry of Petroleum and Mineral Resources.
The agreement was concluded between the Egyptian Natural Gas Holding Company (EGAS) and Abu Dhabi-based Arcius Energy on the sidelines of the Egypt Energy Show 2026, held from 30 March to 1 April under the patronage of Abdel Fattah el-Sisi. Arcius Energy is a joint venture between BP and ADNOC’s international investment arm XRG.
Under the agreement, the Harmattan development is expected to produce around 150 million cubic feet of gas per day (MMcf/d) alongside 3,300 barrels of condensates daily, with project completion targeted for 2028. The ministry added that further development phases are being evaluated to increase output to 200 MMcf/d and 4,400 barrels per day, although timelines for expansion have not yet been disclosed.
The deal forms part of a broader package of agreements and partnerships signed during EGYPES, reflecting Egypt’s strategy to position itself as a regional gas hub. In parallel, Pharaonic Petroleum Company signed an engineering and execution agreement with ENPPI as general contractor for associated projects, reinforcing local industrial participation in upstream development.
In a related development, Cargas signed a memorandum of understanding with South Korea’s KwangShin Machine Industry to expand compressed natural gas (CNG) infrastructure. The agreement covers the design, construction, and operation of refueling stations, alongside maintenance and regional expansion into African and Middle Eastern markets, supporting Egypt’s transition toward cleaner fuel alternatives.
International engagement remained prominent at EGYPES, with the US Embassy in Cairo highlighting the role of American energy firms in advancing Egypt’s oil and gas capacity. Chargé d’Affaires Robert Silverman noted that US companies are contributing to production growth and infrastructure development, supporting Egypt’s ambition to become an Eastern Mediterranean gas hub. High-level meetings were also held between Egyptian officials, including Prime Minister Mostafa Madbouly and Petroleum Minister Karim Badawi, and major operators such as Apache Corporation and ExxonMobil to expand exploration and production activities.
The agreements come as Egypt seeks to close a widening supply-demand gap, with domestic gas production estimated at around 4.1 billion cubic feet per day, compared to demand of approximately 6.2 billion cubic feet per day. Authorities are accelerating upstream investments, including plans to drill more than 100 exploratory wells in 2026, while also implementing pricing and policy measures to secure energy supplies amid ongoing global market volatility.
Collectively, the Harmattan deal and associated agreements underscore Egypt’s multi-track strategy—combining upstream investment, infrastructure expansion, and international partnerships—to enhance energy security and reinforce its role in regional gas markets.
