Canadian energy company Borna is set to invest $40 million in a new facility in Egypt focused on natural gas recovery and carbon capture technologies, supporting the country’s efforts to meet its growing energy needs.
The announcement followed a meeting between Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), and Borna’s CEO, Sam Salimi.
The planned facility will extract valuable gases—including methane, propane, and butane—from flared gas generated during oil extraction.
These gases will be processed and reintegrated into Egypt’s national gas grid, reducing dependence on imports and enhancing energy security.
The project aligns with Egypt’s broader push to cut emissions and transition toward cleaner energy sources.
In addition to gas recovery, the facility will utilize carbon capture and storage (CCS) technologies, potentially boosting activity in Egypt’s voluntary carbon market, launched by the government in 2023.
Salimi emphasized the project’s potential to reduce greenhouse gas emissions, create jobs in the green energy sector, and lower energy costs.
The initiative is backed by the Canadian government and financial institutions supporting market expansion into emerging economies such as Egypt.
Heiba noted that Borna would benefit from Egypt’s private free zone incentives, which offer tax exemptions, simplified licensing, and proximity to oil fields outside traditional industrial hubs.
Moreover, the adoption of clean technologies will help Egypt comply with the EU’s Carbon Border Adjustment Mechanism (CBAM), which requires exporters to disclose the carbon intensity of their products.
Once a leading LNG exporter in Africa, Egypt is currently grappling with a significant gas shortfall.
Amid a deepening currency crisis, the country faces a reported deficit of 2 billion cubic feet of gas per day, worsening electricity outages nationwide.
To address this, the government is pursuing long-term LNG import contracts with major global producers through 2030 to bridge supply gaps and offset declining domestic production.
As many as 60 LNG cargoes may be required to meet demand in 2025 alone.
Partnerships like the one with Borna reflect pragmatic steps by the Egyptian government to attract foreign investment and reposition the country as a major gas player in the region.