Egypt’s Oil and Gas Sector Accounts for 17.4% of Top 100 Borrowers’ Bank Credit Facilities
Egypt’s oil, natural gas and petrochemicals sector accounted for 17.4% of the total outstanding credit facilities extended to the country’s top 100 bank borrowers as of the end of March 2026, according to Central Bank of Egypt data.
Credit facilities provided to the sector grew by 19.4%, compared with 13.8% at the end of March 2025.
Energy Sector Drives Credit Growth
Financing extended to the oil and gas sector contributed to an 18.5% growth in the overall credit portfolio of the top 100 bank borrowers.
The sector’s financing needs have increased amid efforts to secure energy supplies, develop infrastructure and strengthen production capacity.
Natural Gas Production Declines
Domestic natural gas production fell by 8.6% during the first nine months of fiscal year 2025/2026, while domestic demand increased by 6.4%.
As a result, the gap between natural gas production and consumption widened by 46.7%, contributing to a 128.8% increase in natural gas imports.
Egypt expanded its gas import and regasification capacity by operating three vessels at Ain Sokhna and a fourth vessel in Damietta.
The four vessels provide combined capacity of approximately 2.7 billion cubic feet per day, supporting the country’s efforts to strengthen energy supply security and meet domestic demand.
Oil Imports Rise to $9.4 Billion
Egypt’s oil imports increased by 3.4% to $9.4 billion during the same period, while petroleum exports declined by 12.3%.
The decline in exports came amid the continued gap between domestic production and consumption, with part of the country’s output being directed toward meeting local demand.
Global market volatility has also increased pressure on Egypt’s energy import bill.
Brent crude prices exceeded $100 per barrel in March 2026, while European natural gas prices reached $17.99 per million British thermal units.
This compared with approximately $67 per barrel for crude oil and $10 per million British thermal units for natural gas during the period from July 2025 through February 2026.
New Incentives Target Oil and Gas Exploration
To encourage investment in exploration and production, the Egyptian government introduced new incentives for oil and gas exploration.
The measures included allowing the export of a specified portion of newly produced natural gas and increasing the price of the foreign partners’ share.
The government also fully settled outstanding payments owed to foreign companies operating in the sector in June 2026. Their overdue receivables had reached $6.1 billion in June 2024.
Petrochemical Trade Deficit Widens
Egypt’s petrochemical imports declined by 0.3% during the first nine months of fiscal year 2025/2026, while exports fell by 1%.
The performance was affected by weaker global demand and the allocation of part of domestic production to meet local market requirements.
As a result, the sector’s merchandise trade deficit increased by 3.7%.