UK energy major Shell (LON:SHEL) and Malaysia's national oil and gas company Petronas have asked the Egyptian Natural Gas Holding Company (EGAS) to raise the gas price for the upcoming Phase 12 development of the West Delta Deep Marine fields by about 20%, Asharq Business reported on December 7, citing a government official.

The request from Shell and Petronas comes as Egypt aims to stabilise gas production and attract continued investment in offshore exploration, amid mounting global industry cost pressures.

The two companies previously secured an economically viable price for gas produced from Phase 11, on both cost recovery and targeted profit margins. However, they now seek a higher price for the next phase amid rising costs, particularly those linked to drilling operations and seismic surveys.

Unofficial estimates indicate that Shell and Petronas currently receive between $5.5 and $6.2 per mn British thermal units (MMBtu) for gas from recently drilled wells in the concession. The partners are preparing to drill three new wells in the West Delta Deep Marine area through Burullus Gas Company, which operates the block.

In mid-October, Egypt said it was planning to allow Shell and Petronas to export 10 liquefied natural gas (LNG) cargoes between November 2025 and March 2026 through the Idku liquefaction terminal, Asharq Business reported.

The programme, valued at about $280mn,  involved two cargoes per month, each worth roughly $27mn to $28mn and carrying around 80,000 tonnes (about 150,000 cubic metres) of LNG. The government views the move as an incentive to sustain upstream investment and exploration amid efforts to stabilise domestic gas supply.

The Idku LNG plant is operated by Egypt LNG, a joint venture owned by Shell (35.5%), Petronas (35.5%), EGAS (12%), EGPC (12%), and Engie (5%).