Photo courtesy of the Egyptian Ministry of Petroleum
Based in Abu Dhabi, Arcius is a joint venture (JV) between British Petroleum (BP) and Adnoc’s international energy investment firm XRG.
According to the statement, the project aims to produce almost 150 million cubic feet (MMcf/d) of gas and 3,300 barrels of condensate daily. The project is scheduled for completion by 2028.
Moreover, the ministry stated that it was working on other projects to increase the production rate to 200 MMcf/d and 4,400 barrels of condensate daily. It did not, however, disclose any timelines for these projects.
EGAS and Arcius signed the agreement on the sidelines of the Egypt Energy Show 2026 (EGYPES), held from 30 March to 1 April under the auspices of Egyptian President Abdel-Fattah El-Sisi, with the support of the petroleum ministry.
Similarly, EGYPES saw the signing of another agreement between Pharaonic Petroleum Company, a joint venture between BP and EGAS, and Egyptian procurement firm Engineering for the Petroleum and Process Industries (Enppi), the project's general contractor.
The Egyptian government increased fuel and gas prices by 14–30 percent to maintain energy supplies for electricity, as the US-Israeli war on Iran continues to unsettle oil and gas markets, pressurize the country’s energy security, and disrupt international supply chains and the energy sector.
Natural gas as an alternative car fuel
Egypt’s Natural Gas Vehicle Company (Cargas) signed a memorandum of understanding (MoU) with South Korean manufacturer KwangShin Machine Industry, which specializes in developing and producing industrial reciprocating compressors for industrial air and gas applications. According to a petroleum ministry statement on Wednesday, the agreement will assist Egypt's efforts to encourage more car owners to convert their engines to run on Compressed Natural Gas (CNG) instead of petrol.
The MoU further stipulates that the two firms will collaborate on designing and constructing CNG refueling stations, conduct pilot-phase tests, and handle operations, maintenance, and transportation of CNG. The two companies plan to expand their operations into African and Middle Eastern markets.
US firms' active participation in EGYPES
On Thursday, the US Embassy in Cairo released a statement, quoting Chargé d’Affaires Robert Silverman, on the active participation of several major US firms in EGYPES. Silverman stated that American companies participating in EGYPES "are boosting Egypt’s oil and gas production and building the pipelines that will turn Egypt into the natural gas hub for the entire Eastern Mediterranean.”
Silverman met with Egyptian officials, including Prime Minister Mostafa Madbouly and Minister of Petroleum Karim Badawi. He also met with the representatives of the American companies participating in the event.
Furthermore, Silverman noted that EGYPES constitutes "an important opportunity to deepen US-Egypt energy cooperation and engage directly with key government and industry partners.” He added that the event provides the chance for US companies to support Egypt's energy sector in several crucial areas, ranging from “petroleum production and oil field technology to the delivery of essential, affordable natural gas via pipelines and ships.”
On a similar note, President Abdel-Fattah El-Sisi met on the sidelines of EGYPES with representatives of US firms Apache Corporation and ExxonMobil to discuss expanding cooperation on oil and gas exploration and production projects.
Apache focuses on increasing exploration and production activity, particularly in the Western Desert, and improving output from existing fields. ExxonMobil, on the other hand, is pursuing offshore exploration plans in the Mediterranean. It is also working with QatarEnergy to expedite activity in the Cairo and Masry concession areas and plans to begin drilling an exploratory well later this year.
Egypt produces approximately 4.1 billion cubic feet of gas daily, which falls below the domestic demand of 6.2 billion cubic feet daily. The country also consumes 20 billion dollars' worth of petroleum products annually and is planning to drill more than 100 exploratory wells in 2026.
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