Egypt’s energy sector is experiencing a double crisis this summer as the country faces a decline in natural gas production and a rise in electricity demand.

Egypt is suffering from a decline in natural gas production from old fields, such as the giant “Zohr” gas field, whose production has decreased by a third since 2019. The “Zohr” field also faced water leakage problems, which negatively affected production.

The accumulation of debts owed to foreign oil companies has led to a slowdown in exploration and development programs, which hinders the discovery and production of new gas reserves.

The shortage of energy supplies caused power outages, which prompted Egypt to increase imports of liquefied natural gas to meet demand, and this constituted a financial burden on the state treasury.

The energy crisis may slow Egypt’s efforts to achieve its renewable energy goals as the country devotes its resources to addressing the short-term crisis.

The Egyptian government seeks to solve the problem of debts owed to oil companies to attract new investments and stimulate production.

Egypt needs to increase its investments in discovering new natural gas reserves to enhance production and meet its growing needs.

Renewable energy projects are necessary to reduce Egypt’s dependence on fossil fuels and achieve long-term energy security. Egypt can reduce its energy consumption by improving the efficiency of its use in homes and industrial sectors.