Egypt to Import LNG to Meet Surging Domestic Demand

(3 Minutes Read)

The move is intended to counteract a significant drop in domestic gas output and avoid major electricity outages. Last week, Egyptian President Abdel Fattah El-Sisi urged officials to take proactive measures to ensure a steady electricity supply, emphasising the importance of stabilising power generation ahead of the hotter months.

Egypt is in talks to secure as many as 60 LNG cargoes ahead of the high-demand summer season. With current international LNG rates, the procurement could amount to around USD 3 billion, posing a considerable financial burden amid the nation’s ongoing economic difficulties.

The move is intended to counteract a significant drop in domestic gas output and avoid major electricity outages. Last week, Egyptian President Abdel Fattah El-Sisi urged officials to take proactive measures to ensure a steady electricity supply, emphasising the importance of stabilising power generation ahead of the hotter months.

Egypt is also exploring the potential purchase of about 1 million tons of fuel oil. However, LNG remains the preferred option due to more manageable payment terms. Data from S&P Global Commodity Insights shows that Egypt has already bought nearly 1.84 million tons of LNG this year—roughly 75 per cent of its total for 2024.

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 Negotiations are reportedly underway with suppliers from Qatar, Algeria, and Saudi Arabia, as well as major global trading entities. Israel supplies a significant portion of Egypt’s imported gas—between 40 per cent and 60 per cent, accounting for as much as a fifth of the country’s total consumption, according to data from the Joint Organisations Data Initiative (JODI). However, sourcing from Israel may be difficult due to disruptions. in the oil flows due to some maintenance works.