Egypt Seeks Up to 60 LNG Shipments
Egypt is in advanced talks with global energy and trading firms to secure between 40 and 60 shipments of liquefied natural gas (LNG), aiming to meet urgent energy needs before summer demand peaks, according to sources familiar with the matter cited by Reuters.
Cairo is negotiating with companies including Saudi Aramco, Trafigura, and Vitol for LNG supply deals extending through 2028, signaling a strategic shift from exporter to long-term importer amid declining domestic production, Asharq Bloomberg reported.
Sources say the Egyptian Natural Gas Holding Company (EGAS) has received 14 bids for supply contracts ranging from 18 months to three years. The rising demand this year could push Egypt's monthly LNG import bill to nearly $3 billion starting in July, up from approximately $2 billion last year.
This move reflects Egypt's effort to lock in long-term contracts to reduce exposure to volatile spot market prices. It also underscores the country's deepening energy challenges: a sharp drop in gas production, increasing population, and soaring summer temperatures are straining domestic supply and forcing reliance on global markets.
Contract awards are expected next week. Plans call for 110 LNG shipments in the second half of 2025, 254 in 2026, and 130 in the first half of 2027.
One source said bids price LNG at 80 to 95 cents per million British thermal units (MMBtu) above the European benchmark, with payment deferrals of up to 180 days. European gas futures currently trade at about $12 per MMBtu, though LNG cargoes typically sell at a discount.
Egypt is also expanding infrastructure, including the addition of floating storage and regasification units, and is negotiating long-term supply deals with Qatar.
A recent Goldman Sachs report estimated Egypt's 2024 energy deficit at over $11.3 billion, doubling the current account shortfall to 6.2% of GDP, compared to 3.2% the previous year.
President Abdel Fattah al-Sisi has directed the government to preempt power outages this summer, according to a presidential statement this week.
A government source told Reuters Egypt is also considering importing at least 1 million tons of fuel oil, though LNG remains the preferred option due to its more flexible financing.
With gas output in February hitting its lowest level in nine years, Egypt imported 1.84 million tons of LNG in early 2025—roughly 75% of total 2024 imports, according to S&P Global Commodity Insights.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
9 hours ago
- Asharq Al-Awsat
Iran Says No Nuclear Deal If Deprived of 'Peaceful Activities'
Iran said Monday it will not accept a nuclear agreement that deprives it of what it called "peaceful activities", a reference to uranium enrichment, as it pressed the United States for guarantees it would drop sanctions. Uranium enrichment has remained a key point of contention between the foes in talks to seal a nuclear deal, ongoing since April, with Iran defending what it says is its pursuit of a civil nuclear program but with the US side calling it a "red line". Speaking in Cairo, where he met the UN nuclear watchdog's chief Rafael Grossi, Foreign Minister Abbas Araghchi said: "If the goal is to deprive Iran of its peaceful activities, then certainly no agreement will be reached." Araghchi insisted that Iran has "nothing to hide" on its nuclear program. "Iran has a peaceful nuclear program... we are prepared to provide this assurance to any party or entity," he said. The remarks came after Grossi of the International Atomic Energy Agency (IAEA) on Monday called for more transparency from Iran following a leaked report that showed Tehran had stepped up uranium enrichment. - 'Full explanation of activities' - The IAEA report showed that Iran has ramped up production of uranium enriched up to 60 percent -- close to the roughly 90 percent level needed for atomic weapons. "There is a need for more transparency -- this is very, very clear -- in Iran, and nothing will bring us to this confidence (besides) full explanations of a number of activities," Grossi said ahead of meeting Araghchi. Grossi added that some of the report's findings "may be uncomfortable for some, and we are... used to being criticized". Iran has rejected the report, warning it would retaliate if European powers that have threatened to reimpose nuclear sanctions "exploit" it. "Some countries are trying to abuse this agency to pave the way for escalation with Iran. I hope that this agency does not fall into this trap," Araghchi said of the IAEA. Iran meanwhile pushed for the United States to drop sanctions that have crippled its economy as a condition for a nuclear agreement with President Donald Trump's administration. Araghchi said on Saturday that he had received "elements" of a US proposal for a nuclear deal following five rounds of talks mediated by Oman. - 'With or without a deal' - Both Araghchi and Grossi met Egyptian President Abdel Fattah al-Sisi, who praised the US-Iran talks and called for "de-escalation in order to prevent a slide into a full-fledged regional war". On Monday, Iranian foreign ministry spokesman Esmaeil Baqaei told a news conference: "We want to guarantee that the sanctions are effectively lifted." "So far, the American side has not wanted to clarify this issue," he said. The US envoy in the nuclear talks said last month that Trump's administration would oppose any Iranian enrichment. "An enrichment program can never exist in the state of Iran ever again. That's our red line. No enrichment," Steve Witkoff told Breitbart News. Following a phone call with Witkoff the day before about the ongoing nuclear talks, Egyptian FM Abdelatty urged a peaceful solution and a nuclear-weapon-free Middle East, saying in Monday's press conference that "the region is already experiencing enough problems and crises". He warned that military confrontation would create "a state of chaos from which no one will be spared". Iran has vowed to keep enriching uranium "with or without a deal" on its nuclear program. The United States has sent Iran a proposal for a nuclear deal that the White House called "acceptable" and in Tehran's "best interest" to accept, US media reported on Saturday. The New York Times, citing officials familiar with the diplomatic exchanges, said the proposal calls on Iran to stop all enrichment and suggests creating a regional grouping to produce nuclear power. Iran has held five rounds of talks with the United States in search of a new agreement to replace the deal with major powers that Trump abandoned during his first term in 2018.
Arab News
16 hours ago
- Arab News
CASA-1000 power line project with Pakistan to be completed next year — Tajikistan minister
ISLAMABAD: Tajikistan's Deputy Minister for Energy Jamshed Shoimzoda has said a $1.2 billion Western-backed project to build a power line between Central Asia and South Asia would be completed by December next year, state news agency APP reported on Monday. The CASA-1000 project, launched in 2016, aims to allow Tajikistan and Kyrgyzstan, former Soviet republics with an extensive network of hydroelectric power plants, to sell excess energy to Pakistan and Afghanistan in the summer months. The project, initially meant to allow the export of electricity to Afghanistan and Pakistan by 2020, has been stalled for years by turmoil in Afghanistan. Tajikistan and Kyrgyzstan generate most of their energy from hydropower plants built on the rivers that flow into Kazakhstan, Turkmenistan and Uzbekistan. Tajikistan and Kyrgyzstan limit water release during summer due to lower power demand, angering their neighbors who need water for irrigation. The five countries have failed to reach an agreement after decades of negotiations. The new power line could smooth flows as power demand in Pakistan peaks during the summer months. 'Major energy project, CASA-1000 between Pakistan and Tajikistan, will be completed by December 2026, which will start providing 1000 MW of electricity to Pakistan,' Shoimzoda said in an interview to APP. 'This grand project will take time to be operational by January 2027, after which bilateral cooperation in the energy sector between the two countries will be further promoted and there will be a new beginning of clean and green energy projects in both countries.' Tajikistan aims to completely switch to green energy and zero emission by 2027. 'The transmission capacity of the CASA-1000 energy project will be 1,300 megawatts, which will be an energy link between Tajikistan, Pakistan, and Afghanistan to provide clean energy not only to regional countries but also fill the need of Pakistan's industrial sector,' Shoimzoda said. 'Massive infrastructural projects will be beneficial for all of its stakeholders by fulfilling energy needs and strengthening regional connectivity.' Shoimzoda said Tajikistan has the capacity to export 10 billion kilowatt of energy annually, which would benefit all countries in the region, including Pakistan. Tajikistan also currently has the capacity to generate 500 billion KW of electricity, the highest among regional countries in hydel power. The minister said Tajikistan was already providing electricity to other regional countries, including Afghanistan, and in the future would create a regional energy hub, to 'usher in a new era of sustainable energy production and economic prosperity in the region.' The United States was initially involved in financing the 1,200-km-long line as part of its New Silk Road initiative to integrate Afghanistan with Central Asia. Other project sponsors have included the World Bank, Islamic Development Bank, the UK Department for International Development, and the European Bank for Reconstruction and Development.
Asharq Al-Awsat
17 hours ago
- Asharq Al-Awsat
Ford Expands Regional Operations from Riyadh, Strengthens Agility to Accelerate Growth
Ford Motor Company is reinforcing its presence in the Middle East and North Africa by expanding its operations from Riyadh and reintegrating North African markets under regional oversight. The move is part of a broader strategy to enhance the company's operational flexibility and drive faster growth across the region. Ravi Ravichandran, President of Ford Middle East and North Africa, told Asharq Al-Awsat that the decision coincides with the expansion of Ford's Riyadh office, which now includes specialized teams tasked with supporting the diverse needs of regional markets, including Qatar and the Levant. According to Ravichandran, Ford's offices in Riyadh and Dubai now manage a wide array of functions -ranging from sales and marketing to environmental compliance, safety, and after-sales services. This integrated approach supports the company's strong regional network and aligns with its long-term vision for sustainable growth. Commenting on the tariffs imposed during US President Donald Trump's administration on imported vehicles, Ravichandran noted that Ford is still evaluating their potential impact on the regional auto sector. He stressed that it was too early to assess the full effect, adding that Ford's resilience and long-standing investment in American manufacturing innovation give confidence in the company's ability to adapt to evolving trade policies. He stated that while no specific strategic actions have been taken yet to offset the effects of the tariffs or trade tensions, the company remains focused on monitoring developments and maintaining operational agility. Ford recorded a 23% increase in sales during the first quarter of 2025, marking its strongest performance since October 2015 and its best in March since 2014. Ravichandran attributed the surge to strong market dynamics, increased consumer demand, and a well-balanced vehicle lineup, including the Taurus, Territory, Everest, and Ranger, along with Lincoln models such as the Nautilus and Corsair. These results build on the momentum we generated in 2024, when the company achieved its highest annual sales since 2016, he said. He credited this success to Ford's commitment to its partners, robust dealer network, and engaged regional teams. He also highlighted the company's growing focus on customer experience through initiatives such as online service scheduling, mobile service vans, and a new parts distribution center in Dubai, which has increased capacity by 20% and improved parts availability across the region. Ravichandran emphasized the key role Gulf markets play in Ford's regional growth, with Saudi Arabia and the UAE leading in sales. He noted that Saudi Arabia delivered the highest volumes, followed by the UAE, supported by Ford's rigorous testing processes under the region's harsh desert conditions. Looking ahead, Ravichandran expressed optimism about the electric vehicle (EV) market, citing increasing consumer interest, government incentives, and growing infrastructure readiness. As part of its regional electrification strategy, Ford plans to introduce models such as the Mustang Mach-E, the hybrid Territory, and the F-150 hybrid. While acknowledging challenges such as heightened competition and global supply chain disruptions, Ravichandran said Ford remains focused on agility, innovation, and responsiveness. 'With our strengthened presence in Riyadh and Dubai and the support of our dealer network, we're confident in our ability to continue meeting customer needs and driving long-term growth,' he concluded.
