Egypt approves Perenco North Sinai gas deal

Egypt's parliament approved four oil and gas exploration and development agreements on July 22, 2026, including a North Sinai project involving Franco-British independent producer Perenco. The approvals cover exploration and production activities in North Sinai, the Nile Delta, the Mediterranean, and Egypt's Eastern Desert. One agreement allows state-owned Egyptian Natural Gas Holding Company (EGAS) and Perenco Inc. to explore the Al-Fayrouz onshore area of North Sinai. Perenco, a subsidiary of Egypt Kuwait Holding, has operated the North Sinai concession since 2014. The Al-Fayrouz block, awarded in June 2025 through EGAS's 2024 global bid round, is a new onshore frontier for the company, which plans to conduct a 3D seismic survey and drill one exploratory well. Egypt aims to bolster domestic energy production amid growing demand and regional tensions tightening global LNG markets. Separately, Reuters reported that Iran asked the Iran-backed Houthis to prepare to shut the Bab al-Mandab strait should the United States attack Iranian power infrastructure, highlighting maritime route vulnerabilities.