Last week, North China International Oil and Gas Company (NPIC) announced a plan to invest $100 million in oil and gas projects in the Western desert and waters off Egypt.
This is just the beginning of a billion-dollar investment campaign to expand Beijing's presence in the country with the most important strategic position in the world - Oilprice reported.
Since Russia launched a military campaign in Ukraine in February 2022, the West has stepped up investment in Egypt to ensure a supply of gas to replace Russia.
Major oil and gas groups such as Chevron, Eni, BP and Shell have spent billions of dollars to exploit and develop gas fields in the Mediterranean and Red Sea regions.
In particular, Egypt is the only country in the Eastern Mediterranean region with an active liquefied natural gas (LNG) export system, making it a strategic gas export hub for the region.
In addition, Egypt also controls two of the world's most important oil and gas transport routes: the Suez Canal and the Suez- Mediterranean pipeline. About 10% of global oil and LNG flow through here.
This makes the West consider Egypt the focus of its energy strategy, especially as Saudi Arabia - a long-time ally of the US - is increasingly getting closer to China and Russia.
Beijing has long had ambitions to increase its presence in Egypt, but previously prioritized Middle Eastern countries with large oil reserves such as Iran, Iraq and Saudi Arabia.
However, with a new strategic cooperation agreement signed between Beijing and Cairo lasting until 2028, China is stepping up investment in energy, infrastructure and technology in Egypt.
NPIC - a subsidiary of ZhenHua Oil and Gas Group, an extension of the Chinese defense industry - is expected to play a key role in this plan.
Increasing influence in Egypt not only helps China access important energy sources but also expands the strategic corridor from the Middle East to Africa.
China's strong comeback in Egypt has prompted the West to accelerate investment to consolidate its position. ExxonMobil recently announced the discovery of a new gas field in the North Marakia region, off the coast of Egypt.
Chevron has also approved a plan to build a floating gas production station in Cyprus' exclusive economic zone, directly connecting to the Egyptian pipeline system to supply Europe. This is a move to further strengthen the link between Egypt and the West in the energy supply chain.
However, with abundant financial resources and a long-term strategy, China clearly does not want to let the West alone control this important energy center.
If Beijing succeeds in expanding its influence in Egypt, it will have an important link in its ambition to reshape a global energy order in the interests of China and Russia.
