Egypt’s state-owned Egyptian Natural Gas Holding Company (EGAS) has taken a significant step in expanding its international footprint by establishing a subsidiary in Saudi Arabia.
Named Modern Gas Saudi Arabia, the newly formed company, with an initial capital of $530,000, marks EGAS’s entry into the Saudi market, with an 80% ownership stake.
This strategic move, announced by Egypt’s Ministry of Petroleum on March 17, is part of EGAS’s broader strategy to attract foreign investment and bolster its offshore operations in Gulf Corporation Council countries.
In parallel, energy giant bp and UAE’s Abu Dhabi National Oil Company (ADNOC) unveiled plans in February to establish a joint venture in Egypt.
Under this agreement, bp will hold a 51% stake, with ADNOC owning the remaining 49%. This venture will consolidate bp’s interests in three development concessions and various exploration activities across Egypt.
Complementing these developments, bp has committed a substantial investment of $1.5 billion towards exploration and development projects in Egypt, with potential additional investments totaling $5 billion in the pipeline.
These initiatives underscore Egypt’s growing significance as a strategic partner in the region’s energy landscape.
