Dana Gas: Egypt Operations Could Generate $1 Billion in Savings for the Local Economy
Dana Gas expects its operations in Egypt to contribute over $1 billion in economic savings, driven by increased natural gas production in the Nile Delta region, according to the company’s third-quarter financial results released on Friday.
The savings are primarily attributed to the reduction in liquefied natural gas (LNG) imports, as locally produced gas is sold at significantly lower prices than international rates. This helps narrow Egypt’s balance of payments gap and supports the country’s efforts to strengthen energy security and preserve foreign currency reserves.
Expanding Production and Investment
Despite a 28% year-on-year decline in output from its Egyptian operations during the first nine months of 2025 — averaging 12,300 barrels of oil equivalent per day — the Abu Dhabi-listed company said it remains committed to growth, with a $100 million investment plan to boost production and offset natural field declines.
The company is currently expanding its production footprint in the Nile Delta and aims to increase total output by 80 billion cubic feet, supported by three new discoveries, two of which are already onstream while the third is under evaluation.
Dana Gas estimates proven and probable reserves in the concession areas at 15 billion cubic feet, with potential resources of up to 3 billion cubic feet. The new wells are expected to add 10–12 million cubic feet per day by the end of 2025, in addition to 6.3 billion cubic feet of reserves added from reworking three existing wells.
Supporting Egypt’s Energy Balance
Egypt’s gas demand reached 60 billion cubic meters in 2024, compared to 47.5 billion cubic meters of domestic production, leaving a supply gap exceeding 12 billion cubic meters, according to data from the Energy Institute and the Egyptian Presidency.
Dana Gas noted that its ongoing operations and new investments will play a critical role in reducing Egypt’s import dependency, stabilizing supply, and enhancing local energy resilience.
The company’s net profit for the third quarter stood at $103 million, down 8% from a year earlier, due to lower production levels. Nonetheless, Dana Gas affirmed that timely payments of government receivables continue to bolster its expansion plans and investor confidence in Egypt’s energy sector.