Egypt could splash $3bn for LNG as energy crisis intensifies in peak summer

Arabian Business

23-05-2025

Egypt is willing to spend nearly US$3 billion from its struggling coffers on 40-60 cargoes of liquefied natural gas (LNG) as the country prepares for peak summer energy demand.
Reuters reported that talks are already ongoing with Qatar, Saudi Aramco and Algeria, President Abdel Fattah al-Sisi directed the government to 'do whatever is necessary to ensure stable electricity flow'.
The country's financial crisis and its falling currency has led to delayed payments to international oil companies, slowing their domestic oil and gas output and curbing exploration.
While Reuters said Egypt's Ministry of Petroleum, Qatar Energy, Saudi Aramco and the Algerian Ministry of Energy and Mining did not immediately respond to its requests for comment, it quoted an industry source as saying: 'The government is now in talks to import at least 40 LNG cargoes and around 1 million tons of fuel oil. Gas was the primary focus, given the more flexible payment options available compared to fuel oil, though the latter remains under consideration if LNG prices are unfavourable.'
The energy crisis has led the Egyptian government to shut down most markets by 10pm, and restaurants by midnight. Rolling loadshedding (scheduled blackouts) are in place in most part of the country.
In February, Reuters had also reported that Egypt's own gas output hit its lowest level in nine years, and the country became a net importer in 2024 as its own production stalled. The report cited data from the Joint Organisations Data Initiative showing that the country's natural gas production declined sharply, from 4.6 billion cubic metres in January 2024 to just 3.3 billion cubic metres in February 2025 – the lowest output since April 2016.
Egypt relies heavily on imported Israeli gas (40-60 per cent of its total imported supply), and there has been lower supply from Israel's offshore Leviathan field, because of scheduled maintenance.
The crisis is affecting industrial production as well. Oil & Gas Middle East reported that Abu Qir Fertilisers and Chemical Industries and Misr Fertilisers Production Company (MOPCO) both issued statements via the Egyptian stock exchange confirming they had received notice of a two-week supply reduction. The companies expect this will lead to a 30 per cent drop in production during the affected period.