Egypt Eyes Gas Production Increase

Egypt plans to increase natural gas production from several key concession areas, including its giant Zohr field, in 2025. (Getty Images)
Egypt plans to increase natural gas production from several key concession areas, including its giant Zohr field, in 2025. (Getty Images)
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Egypt Eyes Gas Production Increase

Egypt plans to increase natural gas production from several key concession areas, including its giant Zohr field, in 2025. (Getty Images)
Egypt plans to increase natural gas production from several key concession areas, including its giant Zohr field, in 2025. (Getty Images)

Egypt plans to increase natural gas production from several key concession areas, including its giant Zohr field, in 2025, Petroleum Minister Karim Badawi said on Monday.

The government aims to ramp up output at Zohr by drilling new wells starting in the first quarter of 2025, according to a ministry statement. Production from the field remained stable at around 2 billion cubic feet per day (bcf/d) in the fiscal year 2023-24, which ended in June.

Zohr, once a game-changer that turned Egypt from a net gas importer to an exporter, peaked at 3.2 bcf/d in 2019 but has since seen output decline to 1.9 bcf/d in early 2024.

The drop was mainly due to foreign oil companies’ hesitance to invest as Egypt accumulated billions in arrears. However, in August, Prime Minister Mostafa Madbouly announced that his government had a clear plan to restore and increase production levels in cooperation with foreign partners.

Egypt is also seeking to boost pipeline imports from neighboring Israel and Cyprus while exporting liquefied natural gas (LNG) through its two export facilities.

Additionally, Egypt signed a partnership agreement on Monday with Greece's Copelouzos Group to enhance the trade, transport, supply, and regasification of natural gas across Eastern Europe and Greece.



How Tiny Lesotho Ended up with the Highest US Tariffs in the World

 Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
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How Tiny Lesotho Ended up with the Highest US Tariffs in the World

 Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)
Workers perfom their duties at Quantum Apparel factory on the outskirts of Maseru, the capital of Lesotho, the tiny Southern African kingdom that US President Donald Trump ridiculed last month, April 4, 2025. (Reuters)

If you have ever bought a pair of jeans from an American brand like Levi’s or Wrangler, chances are they were manufactured at a factory in the small southern African nation of Lesotho.

Textile manufacturing is one of Lesotho's key industries, exporting some 75% of its output to the United States.

This is expected to change after US President Donald Trump slapped a 50% tariff on imports from Lesotho, the highest among all countries. According to Trump, Lesotho charges a 99% tariff on US goods, but the government said it doesn't know how the US administration calculated that figure. Government officials did not say Thursday what Lesotho's tariffs on US goods are.

Here is what the high tariffs mean for Lesotho:

A country ‘nobody has ever heard of’

Trump made fun of Lesotho in a speech in March, calling it a nation that “nobody has ever heard of.” Lesotho's foreign minister reminded him that the US has a diplomatic mission there.

Last year, the landlocked kingdom bordered on all sides by South Africa with a population of 2.3 million people, celebrated 200 years of the founding of the Basotho nation and 58 years of independence from British rule.

Its picturesque scenery and mountainous views draw visitors from Africa and across the world, and during winter, Lesotho becomes one of the most sought-after skiing destinations.

What are Lesotho's exports and the economy?

Lesotho does not pay tariffs on exports to Botswana, Namibia, South Africa and Swaziland since it is a member of regional economic blocs such as the Southern African Customs Union. Main exports include clothing, diamonds, water, power, wool and mohair.

The new tariffs announced by Trump mean that American consumers will pay more for goods made in Lesotho, making them less competitive in the US market.

According to the Office of the US Trade Representative, in 2024, US-Lesotho bilateral trade stood at $240.1 million. Apart from clothing, Lesotho's exports also include diamonds and other goods.

Classified as a lower-middle income country by the World Bank, nearly half of Lesotho's 2.3 million population live below the poverty line, while a quarter are unemployed.

How has Lesotho reacted to tariffs?

Lesotho’s Trade Minister Mokhethi Shelile said his country will be on the prowl for new markets and use the Africa Continental Free Trade Area to increase exports to favorable destinations in Africa.

The government would also urgently send a delegation to the US to negotiate a workable arrangement. Shelile said he's concerned about the possible closure of textile factories, which employ about 12,000 people in Lesotho.