Egypt is set to pour EGP 16 billion (approximately $2.4 billion) into a comprehensive modernization of its petroleum pipeline infrastructure in fiscal year 2026/27, in what marks one of the largest investments in the nation’s oil and gas transportation network in recent history. The ambitious initiative comes as the country grapples with mounting pressure to secure reliable fuel supplies and prevent the energy shortages that plagued the nation last summer.
Petroleum Minister Karim Badawi announced the sweeping overhaul during a budget approval meeting with the state-owned Petroleum Pipelines Company, describing the pipeline system as “a critical link connecting upstream production fields with downstream refineries and end consumers.” The investment will focus on developing, replacing, and enhancing the efficiency of Egypt’s national pipeline network, which serves as the backbone for transporting crude oil and refined products across the country.
The upgrade comes on the heels of a successful deployment of cutting-edge Supervisory Control and Data Acquisition (SCADA) technology, which has virtually eliminated pipeline theft and illegal tapping that previously cost the nation millions. Salah Abdel Kerim, CEO of the Egyptian General Petroleum Corporation, revealed that encroachments and theft attempts have dropped to negligible levels following the completion of a EGP 3.3 billion security package.
Badawi emphasized that the pipeline modernization must align with Egypt’s broader fuel supply strategies over the next five years, particularly to support planned refinery upgrades that will require additional crude oil supplies to operate at full production capacity. The minister stressed the importance of “strengthening network reliability, capacity, and operational resilience” as domestic consumption continues to rise.
The announcement coincides with separate plans by Cairo Oil Refining Company to invest EGP 679 million in local manufacturing projects during the same fiscal year, signaling a coordinated push to bolster Egypt’s entire petroleum infrastructure.
Source: egyptoil-gas.com