Shell has taken a final investment decision (FID) on the development of the Mina West offshore gas field in Egypt’s Mediterranean waters, a move aimed at alleviating the country’s widening domestic supply gap and reinforcing its integrated gas strategy. The announcement, made jointly with Kuwait Foreign Petroleum Exploration Company (KUFPEC), comes as Egypt struggles with LNG import dependence and declining output from legacy fields.
The project, first disclosed on July 23, was further detailed Friday by Shell and industry sources. Mina West, holding an estimated 0.5 trillion cubic feet (tcf) of gas, will be developed via a subsea tie-back to existing West Delta Deep Marine (WDDM) infrastructure, allowing accelerated production at lower emissions intensity.
Shell holds a 60% operating stake through its subsidiary BG International, while KUFPEC controls the remaining 40%.
“This development underscores our commitment to delivering competitive and lower-carbon energy where it’s needed most,” Shell Egypt’s chair Dalia Elgabry said earlier this week, according to Daily News Egypt.
KUFPEC CEO Eisa Al-Maraghi added on Friday that the decision reflects “a shared vision to maximize resource efficiency, while contributing to Egypt’s energy security,” as reported by Global Flow Control.
Egypt, once a regional LNG exporter, has been forced to resume imports in 2025 as gas consumption surges and output from fields like Zohr declines. The country recently signed multi-billion-dollar LNG supply agreements with Shell and TotalEnergies, and a dry spell in its Red Sea exploration program has further tilted investment focus toward proven offshore Mediterranean assets.
The Mina West project is expected to deliver early gas volumes to Egypt’s domestic grid while supporting Shell’s goal of expanding integrated gas output by 1% annually through the decade. By using existing underwater pipelines and facilities, the project can move faster and cost less, making it vital to easing pressure on Egypt’s gas supply.
The Mina West approval also comes amid renewed upstream interest in Egypt’s offshore blocks, as both Western and regional firms accelerate exploration bids in the Mediterranean. Multiple license rounds have drawn fresh attention to the North Alexandria and Herodotus basins, where technical evaluations suggest untapped potential. With the government prioritizing fast-track development and infrastructure tie-ins, Shell’s decision is widely seen as a first mover advantage in a broader competitive cycle aimed at restoring Egypt’s role as a gas export hub.
By Michael Kern for Oilprice.com
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