USD 4.5 Billion Refinery Upgrade Planned to Cut Fuel Imports

A USD 4.5 billion refinery investment programme is planned to upgrade existing facilities and add new processing units, with the aim of reducing reliance on imported fuel and increasing domestic production of refined petroleum products.

Petroleum and Mineral Resources Minister Karim Badawi said refinery utilisation has risen to around 80% of capacity, up from 66% two years ago, with further increases targeted as new investments come online.

The refinery programme forms part of a wider effort to rebuild oil and gas production after a decline between 2021 and 2024. Badawi linked that slowdown to unpaid government debts owed to foreign energy companies, which he said discouraged further investment.

The government has since repaid around USD 6.1 billion in arrears, according to Badawi, who said hydrocarbon exploration and production activity has grown by nearly 20% this year.

More than 100 exploratory oil and gas wells are planned for 2026 as part of a five-year programme covering around 480 wells and approximately USD 5.7 billion in investment. Officials have also previously targeted an increase in crude output of nearly 60,000 barrels per day within two years.

The push to raise domestic production comes as the cost of imported fuel remains elevated. The fuel import budget for fiscal year 2026/27 was increased by almost 40% in May amid higher global energy prices linked to the regional war involving Iran.

According to the Kuwait-based Arab Energy Organization, Egypt has estimated extractable reserves of around 2.8 billion barrels of crude oil and 2.2 trillion cubic metres of natural gas.