Egypt is in negotiations with energy firms and trading houses to purchase 40–60 cargoes of liquefied natural gas (LNG) as the country grapples with a deepening energy crisis ahead of peak summer demand, reported Reuters.
The procurement could cost up to $3bn at current prices, placing additional pressure on state finances already strained by a persistent hard currency shortage and rising living costs.
President Abdel Fattah al-Sisi has instructed the government to "preemptively take whatever needs necessary to ensure stable electricity flow”.
An industry source familiar with the matter told Reuters that "the government is now in talks to import at least 40 LNG cargoes and around one million tonnes of fuel oil".
Egypt has faced repeated electricity blackouts over the past two years due to declining domestic gas output, which in February fell to its lowest level in nine years.
The foreign currency crunch has also delayed payments to international oil and gas companies, discouraging investment and curbing production.
To meet anticipated demand in 2025, Egypt may require up to 60 LNG cargoes, and long-term estimates suggest this number could climb to as many as 150, a second trading source said.
Talks are ongoing with Qatar, Algeria, Saudi Aramco and several global trading houses.
The situation has been further complicated by reduced gas supplies from Israel’s Leviathan field due to scheduled maintenance, prompting Egypt to cut or suspend gas deliveries to several fertiliser plants for at least two weeks.
A prolonged disruption could impact fertiliser exports, an important source of foreign exchange.
Israel supplies between 40% and 60% of Egypt’s total imported gas, accounting for around 15–20% of national consumption.
Two industry sources told Reuters that Israel is now seeking a 25% increase in export gas prices, even as oil prices, which Israeli gas contracts are indexed to, have declined.
A spokesperson for Israel’s Energy Ministry stated that gas prices are set through commercial negotiations between the relevant companies.
Egypt’s Ministry of Petroleum has not commented on the matter.
In a related development, Singapore-based Seatrium has been awarded a contract to convert an LNG carrier into a floating storage and regasification unit for deployment in Egypt.
