Egypt & Qatar Sign USD 500 Million Sustainable Aviation Fuel Hub Deal

Egypt has secured a USD 500 million agreement with Qatari partners to develop a sustainable aviation fuel (SAF) production hub in the Sokhna area of the Suez Canal Economic Zone (SCZONE), with Shell acting as a strategic partner and long-term offtaker. The project will be located within the Sokhna industrial and logistics zone, taking advantage of port infrastructure and proximity to major international shipping lanes. Under the agreement, Shell will take the entire output under a long-term supply contract, with first exports expected within 18 months of project implementation. The SAF facility will be developed in three phases, with total production capacity expected to reach 600,000 tonnes annually at full scale. Over a ten-year period, the hub is projected to generate exports valued at approximately USD 15 billion, supplying international aviation markets across Europe, Africa, and the Middle East, where demand for low-carbon jet fuel continues to rise. Shell’s involvement includes technical expertise, fuel certification support, and market access, drawing on its global experience in alternative fuels and energy transition projects. The company’s offtake commitment provides commercial certainty for the project, supporting its phased expansion and financing structure. The development aligns with Egypt’s wider strategy to position the Suez Canal Economic Zone as a regional centre for clean fuels and green manufacturing, alongside hydrogen, methanol, and renewable energy projects already under development in Sokhna.